Ontario Surtax Calculation 2015

The Ontario Surtax was a temporary tax applied to high-income earners in Ontario, Canada during 2015. 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 efforts to address income inequality. It was a temporary measure that applied to taxable income exceeding $200,000 for individuals and $400,000 for couples in 2015.

The surtax was designed to be progressive, meaning higher-income earners paid a larger percentage of their income in taxes. This was intended to help fund social programs and reduce income inequality.

How to Calculate Ontario Surtax

The Ontario Surtax is calculated based on your taxable income and the applicable surtax rate. The formula is:

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

For couples, the threshold is $400,000.

First, determine your taxable income by subtracting deductions from your total income. Then apply the surtax rate to the amount exceeding the threshold.

Ontario Surtax Rates (2015)

The Ontario Surtax rates for 2015 were as follows:

Taxable Income Range	Surtax Rate
$200,000 - $250,000	1.5%
$250,000 - $300,000	2.5%
$300,000 - $350,000	3.5%
$350,000 - $400,000	4.5%
Over $400,000 (couples)	5.5%

These rates were applied to the portion of income above the specified thresholds.

How the Surtax Was Applied

The Ontario Surtax was applied to federal taxable income, not provincial taxable income. This meant that the surtax was calculated based on your federal taxable income, which is your total income minus federal deductions.

The surtax was added to your federal tax liability and then subject to the Ontario tax rates. This meant that the surtax was effectively taxed twice - once at the federal level and again at the provincial level.

Note: The Ontario Surtax was a temporary measure and was not applied in subsequent years.

Example Calculation

Let's say you have a taxable income of $275,000 in 2015. Here's how the Ontario Surtax would be calculated:

Subtract the threshold: $275,000 - $200,000 = $75,000
Determine the applicable rate: $250,000 - $300,000 range = 2.5%
Calculate the surtax: $75,000 × 2.5% = $1,875

Therefore, your Ontario Surtax for 2015 would be $1,875.

FAQ

Who was eligible for the Ontario Surtax in 2015?

Individuals with taxable income over $200,000 and couples with taxable income over $400,000 were eligible for the Ontario Surtax in 2015.

Was the Ontario Surtax permanent?

No, the Ontario Surtax was a temporary measure introduced in 2015 and was not applied in subsequent years.

How was the Ontario Surtax different from the federal surtax?

The Ontario Surtax was a provincial measure, while the federal surtax was a federal measure. Both were applied to high-income earners but had different thresholds and rates.