Tax Brackets Ontario 2021 Calculator
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Reviewed by Calculator Editorial Team
Use this Ontario tax brackets calculator to determine your 2021 tax liability based on your income and deductions. The calculator applies both federal and provincial tax rates to provide an accurate estimate of your tax obligations.
How the Ontario Tax Brackets Calculator Works
The Ontario tax brackets calculator applies the 2021 tax rates to your income after deductions. The calculation follows these steps:
- Subtract eligible deductions from your total income to determine taxable income
- Apply federal tax rates to the taxable income
- Apply Ontario provincial tax rates to the taxable income
- Sum the federal and provincial taxes to get your total tax liability
Formula Used
Total Tax = (Taxable Income × Federal Tax Rate) + (Taxable Income × Ontario Tax Rate)
Taxable Income = Total Income - Deductions
The calculator uses the official 2021 tax brackets for both federal and provincial taxation in Ontario. It does not include payroll deductions or other withholding taxes.
Federal vs. Provincial Tax Rates in Ontario
Ontario residents are taxed both federally and provincially. The 2021 tax brackets are as follows:
Federal Tax Rates
| Income Range | 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% |
Ontario Provincial Tax Rates
| Income Range | Tax Rate |
|---|---|
| $0 - $44,709 | 5.05% |
| $44,709 - $89,419 | 9.15% |
| $89,419 - $150,000 | 11.16% |
| $150,000 - $220,000 | 12.16% |
| $220,000+ | 13.16% |
The combined tax rate varies depending on your income level. For example, someone earning $50,000 would pay approximately 24.2% in combined federal and provincial taxes.
Common Tax Deductions and Credits
Several deductions and credits can reduce your taxable income and lower your tax liability:
Common Deductions
- RRSP contributions (up to $27,420 in 2021)
- TFSA contributions (up to $6,500 in 2021)
- Medical expenses exceeding 3% of income
- Donations to registered charities
- Home office expenses
Common Credits
- Canada Child Benefit (CCB)
- Ontario Child Benefit
- Canada Pension Plan (CPP) contributions
- Employment Insurance (EI) premiums
- Lifetime Learning Credits
Note
Deductions and credits vary by year and may change in future tax years. Always consult the Canada Revenue Agency (CRA) for the most current information.
Example Calculation
Let's calculate the tax liability for a single Ontario resident with $60,000 in income and $10,000 in deductions:
- Taxable Income = $60,000 - $10,000 = $50,000
- Federal Tax = $50,000 × 20.5% = $10,250
- Ontario Tax = $50,000 × 9.15% = $4,575
- Total Tax = $10,250 + $4,575 = $14,825
This example shows the combined federal and provincial tax liability for this income level.
Frequently Asked Questions
How do I know if I'm in the right tax bracket?
Use the calculator to input your income and deductions. The result will show your total tax liability and the applicable tax rates for your income level.
Are there any tax-free allowances in Ontario?
Yes, Ontario provides a basic personal amount of $12,069 in 2021 that is not taxed. This amount is included in the tax brackets calculation.
How do I claim deductions and credits?
You can claim deductions and credits when you file your tax return. The calculator helps estimate your tax liability before filing.
Are there any provincial tax credits available?
Yes, Ontario offers various tax credits including the Ontario Child Benefit and the Ontario Trillium Benefit for seniors.