Ontario Tax Calculator 2020

Calculate your Ontario income tax for 2020 using this free tax calculator. This tool helps you estimate your tax liability based on your income, deductions, and tax credits. The calculator uses the 2020 Ontario tax rates and provides a breakdown of your taxable income and tax owed.

How the Ontario Tax Calculator Works

The Ontario tax calculator determines your income tax liability by applying the 2020 Ontario tax rates to your taxable income. The calculation process involves several steps:

Calculate your taxable income by subtracting eligible deductions from your total income.
Apply the progressive Ontario tax rates to your taxable income.
Calculate any additional taxes such as CPP and EI premiums.
Subtract any eligible tax credits to arrive at your final tax liability.

Formula

Ontario Tax = (Taxable Income × Ontario Tax Rate) + Additional Taxes - Tax Credits

Where:

Taxable Income = Total Income - Deductions
Ontario Tax Rate is progressive based on income brackets
Additional Taxes include CPP and EI premiums
Tax Credits are subtracted from the total tax

The calculator uses the 2020 Ontario tax rates, which are progressive and apply to taxable income up to $220,000. For income above this amount, the highest marginal rate of 13.16% applies.

Ontario Income Tax Rates 2020

The 2020 Ontario tax rates are progressive, meaning higher income brackets are taxed at higher rates. The tax rates for 2020 are as follows:

Taxable Income	Marginal Rate
$0 - $44,701	5.05%
$44,702 - $89,404	9.15%
$89,405 - $150,000	11.16%
$150,001 - $220,000	12.16%
Over $220,000	13.16%

In addition to the Ontario tax, there are federal tax rates that also apply. The combined federal and provincial tax rates create a progressive tax system in Ontario.

How to Use This Calculator

Using the Ontario tax calculator is straightforward. Follow these steps to get your estimated tax liability:

Enter your total income for 2020 in the "Total Income" field.
Enter any eligible deductions in the "Deductions" field.
Select your filing status (Single, Married, or Other).
Click the "Calculate" button to see your estimated tax liability.
Review the breakdown of your taxable income, tax owed, and any additional taxes.

Note: This calculator provides an estimate based on the 2020 tax rates. For exact tax calculations, consult a tax professional or use official government tax forms.

Worked Examples

Here are two examples of how the Ontario tax calculator works with different income levels.

Example 1: Single Filer with $50,000 Income

For a single filer with $50,000 in income and no deductions:

Taxable Income = $50,000 - $0 = $50,000
Ontario Tax = ($50,000 × 5.05%) + ($50,000 - $44,701) × (9.15% - 5.05%) = $2,525 + $4,230.15 = $6,755.15
Additional Taxes (CPP and EI) = $2,300
Total Tax Owed = $6,755.15 + $2,300 = $9,055.15

Example 2: Married Filer with $100,000 Income

For a married filer with $100,000 in income and no deductions:

Taxable Income = $100,000 - $0 = $100,000
Ontario Tax = ($44,701 × 5.05%) + ($44,703 × 9.15%) + ($10,297 × 11.16%) = $2,257.25 + $4,066.65 + $1,150.68 = $7,474.58
Additional Taxes (CPP and EI) = $4,600
Total Tax Owed = $7,474.58 + $4,600 = $12,074.58

Frequently Asked Questions

What is the Ontario tax rate for 2020?

The Ontario tax rates for 2020 range from 5.05% to 13.16%, depending on your taxable income. The rates are progressive, meaning higher income brackets are taxed at higher rates.

How do I calculate my Ontario tax?

To calculate your Ontario tax, subtract your eligible deductions from your total income to get your taxable income. Then apply the progressive Ontario tax rates to your taxable income. Add any additional taxes such as CPP and EI premiums, and subtract any eligible tax credits to arrive at your final tax liability.

What are the Ontario tax brackets for 2020?

The Ontario tax brackets for 2020 are:

$0 - $44,701: 5.05%
$44,702 - $89,404: 9.15%
$89,405 - $150,000: 11.16%
$150,001 - $220,000: 12.16%
Over $220,000: 13.16%