Ontario Tax Brackets 2021 Calculator

Understanding Ontario's tax brackets is essential for managing your finances. This calculator helps you determine how much tax you'll owe based on your income for the 2021 tax year.

How Ontario Tax Brackets Work

Ontario uses a progressive tax system, meaning your tax rate increases as your income rises. The province's tax system is based on a series of brackets, each with its own tax rate. The amount of tax you owe depends on where your income falls within these brackets.

Key Concepts

Progressive taxation: Higher income earners pay higher tax rates
Marginal tax rate: The tax rate applied to the last dollar of your income
Average tax rate: The total tax paid divided by total income

The Ontario government sets tax rates for federal and provincial taxes. For the 2021 tax year, the federal tax rates are:

Income Range	Federal Tax Rate
$0 - $48,535	15%
$48,535 - $97,069	20.5%
$97,069 - $150,473	26%
$150,473 - $214,368	29%
$214,368+	33%

2021 Ontario Tax Rates

The 2021 Ontario tax rates are as follows:

Income Range	Provincial Tax Rate
$0 - $44,701	5.05%
$44,701 - $89,402	9.15%
$89,402 - $150,000	11.16%
$150,000 - $220,000	12.16%
$220,000+	13.16%

The combined federal and provincial tax rates for 2021 are:

Income Range	Combined Tax Rate
$0 - $44,701	20.05%
$44,701 - $48,535	20.55%
$48,535 - $89,402	29.65%
$89,402 - $97,069	35.65%
$97,069 - $150,000	37.16%
$150,000 - $150,473	38.16%
$150,473 - $214,368	41.16%
$214,368 - $220,000	42.16%
$220,000+	43.16%

Important Notes

These rates are for the 2021 tax year. Rates may change in future years. The calculator uses the exact tax brackets and rates from the Canada Revenue Agency for 2021.

How to Use This Calculator

Enter your total annual income in the calculator
Click "Calculate" to see your estimated tax liability
Review the breakdown of your tax calculation
Use the chart to visualize how your income is taxed

The calculator shows:

Your marginal tax rate (the rate applied to your last dollar of income)
Your average tax rate (total tax divided by total income)
A breakdown of how much tax is paid in each bracket
A visual representation of your tax liability

Examples

Example 1: Low Income Earner

For someone earning $30,000:

First $44,701 at 5.05% = $2,259.28
Total tax = $2,259.28
Marginal tax rate = 5.05%
Average tax rate = 7.53%

Example 2: Middle Income Earner

For someone earning $80,000:

First $44,701 at 5.05% = $2,259.28
Next $34,699 at 9.15% = $3,169.55
Total tax = $5,428.83
Marginal tax rate = 9.15%
Average tax rate = 6.79%

Example 3: High Income Earner

For someone earning $200,000:

First $44,701 at 5.05% = $2,259.28
Next $44,701 at 9.15% = $4,069.55
Next $60,600 at 11.16% = $6,739.84
Next $49,400 at 12.16% = $6,022.74
Total tax = $19,081.37
Marginal tax rate = 12.16%
Average tax rate = 9.54%

FAQ

What are Ontario tax brackets?: Ontario tax brackets are income ranges with different tax rates. The higher your income, the higher your tax rate.
How does the Ontario tax system work?: Ontario uses a progressive tax system where your tax rate increases as your income rises. The province sets provincial tax rates, and federal tax rates are set by the federal government.
What is the difference between marginal and average tax rates?: The marginal tax rate is the rate applied to your last dollar of income. The average tax rate is the total tax paid divided by your total income.
Are Ontario tax rates the same as federal tax rates?: No, Ontario has its own provincial tax rates that are combined with federal tax rates to determine your total tax liability.
How often do Ontario tax rates change?: Ontario tax rates are typically reviewed and adjusted annually. The rates for 2021 are specific to that tax year and may change in future years.