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Ontario Surtax Calculation 2014

Reviewed by Calculator Editorial Team

The Ontario Surtax was a temporary tax imposed on high-income earners in Ontario, Canada during 2014. This calculator helps you determine how much surtax you would have owed based on your taxable income.

What is Ontario Surtax?

The Ontario Surtax was introduced as part of the federal government's 2014 budget to address the federal government's deficit. It applied to individuals with taxable income over $200,000 and was designed to raise additional revenue.

The surtax was progressive, meaning the rate increased as income levels rose. The rates were:

  • $200,001 to $250,000: 1% surtax
  • $250,001 to $500,000: 2% surtax
  • Over $500,000: 3% surtax

The surtax was applied to the amount of taxable income that exceeded $200,000. It was not a flat tax but rather a percentage of the income above the threshold.

How to Calculate Ontario Surtax

The Ontario Surtax calculation follows these steps:

  1. Determine your taxable income for the year
  2. Subtract $200,000 from your taxable income to find the taxable amount subject to surtax
  3. Apply the appropriate surtax rate based on your income level
  4. Calculate the surtax amount by multiplying the taxable amount by the surtax rate

Formula

If Taxable Income > $200,000:

Surtax Amount = (Taxable Income - $200,000) × Surtax Rate

Where Surtax Rate is:

  • 1% for $200,001 to $250,000
  • 2% for $250,001 to $500,000
  • 3% for over $500,000

The surtax is added to your regular provincial tax liability. It was a one-time measure that was not extended beyond 2014.

Example Calculation

Let's calculate the Ontario Surtax for someone with a taxable income of $300,000 in 2014.

  1. Taxable Income = $300,000
  2. Amount over $200,000 = $300,000 - $200,000 = $100,000
  3. Surtax Rate = 1% (since $300,000 is between $200,001 and $250,000)
  4. Surtax Amount = $100,000 × 1% = $1,000

In this example, the Ontario Surtax would have been $1,000.

Note: This is a simplified example. Actual calculations would need to consider your specific tax situation and other deductions.

FAQ

Who was eligible for the Ontario Surtax?
Individuals with taxable income over $200,000 were eligible for the Ontario Surtax in 2014.
Was the Ontario Surtax permanent?
No, the Ontario Surtax was a one-time measure implemented in 2014 and was not extended beyond that year.
How was the Ontario Surtax different from the federal surtax?
The Ontario Surtax was a provincial measure, while the federal government also implemented a surtax on high-income earners. The rates and thresholds may have differed between the two.
Was the Ontario Surtax refundable?
No, the Ontario Surtax was not refundable. It was an additional tax that needed to be paid along with your regular provincial taxes.