Ontario Tax Return Calculator 2021
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Reviewed by Calculator Editorial Team
Use this Ontario tax return calculator to estimate your 2021 tax liability. The calculator provides a simplified estimate based on federal and provincial tax rates for 2021. For an exact calculation, consult a tax professional or use official government forms.
How to Use This Calculator
Enter your total income for 2021 in the calculator below. The calculator will estimate your federal and provincial tax liability based on 2021 tax rates. Keep in mind this is an estimate and does not account for all possible deductions and credits.
For a more accurate calculation, you should:
- Track all income sources
- Calculate all eligible deductions
- Consider provincial credits and benefits
- Use official government forms
How Ontario Tax is Calculated
Ontario tax is calculated using progressive tax brackets. The 2021 tax rates are as follows:
Ontario Tax Brackets 2021
- First $44,753: 5.05%
- Next $44,753: 9.15%
- Next $55,243: 11.16%
- Next $62,704: 12.16%
- Amounts over $163,453: 13.16%
The federal tax rates for 2021 were:
Federal Tax Brackets 2021
- First $48,535: 15%
- Next $48,535: 20.5%
- Next $53,404: 26%
- Next $63,895: 29%
- Amounts over $167,408: 33%
Your total tax liability is the sum of your federal and provincial taxes.
Deductions and Credits
There are many deductions and credits available to Ontario residents. Common examples include:
- Canada Pension Plan (CPP) contributions
- Registered Retirement Savings Plan (RRSP) contributions
- Medical expenses
- Donations to charitable organizations
- Home office expenses
Provincial credits such as the Ontario Trillium Benefit may also reduce your tax liability.
Note: This calculator does not account for all possible deductions and credits. For an exact calculation, consult a tax professional or use official government forms.
Filing Requirements
In Ontario, you must file a tax return if:
- Your net income is $12,222 or more
- You are self-employed
- You have RRSP contributions
- You have claimed the Canada Child Benefit
- You have claimed the Ontario Trillium Benefit
You can file your tax return online through the Canada Revenue Agency (CRA) website or by mail.
Worked Example
Let's calculate the estimated tax for someone with $60,000 in income for 2021.
Federal Tax Calculation
$48,535 × 15% = $7,280.25
($60,000 - $48,535) × 20.5% = $2,267.73
Total Federal Tax = $7,280.25 + $2,267.73 = $9,547.98
Provincial Tax Calculation
$44,753 × 5.05% = $2,264.92
($60,000 - $44,753) × 9.15% = $1,250.16
Total Provincial Tax = $2,264.92 + $1,250.16 = $3,515.08
Total Estimated Tax = $9,547.98 (federal) + $3,515.08 (provincial) = $13,063.06
Frequently Asked Questions
Is this calculator accurate for my 2021 tax return?
This calculator provides an estimate based on 2021 tax rates. For an exact calculation, consult a tax professional or use official government forms.
Do I need to file a tax return if I earned less than $12,222?
No, you only need to file if your net income is $12,222 or more, or if you qualify for certain credits and benefits.
How do I claim deductions and credits?
You can claim deductions and credits on your tax return. Keep records of all eligible expenses and contributions.