Tax Calculation 2018 Ontario

Calculate your Ontario provincial income tax for the 2018 tax year using this professional tax calculator. Understand the tax brackets, deductions, and credits that apply to your income.

How to Use This Calculator

Enter your total taxable income for 2018 in the calculator below. The calculator will compute your Ontario provincial income tax based on the 2018 tax brackets. You can also account for common deductions and credits.

This calculator provides an estimate. For exact tax calculations, consult a tax professional or use official government tax forms.

Ontario Tax Brackets for 2018

The Ontario provincial tax rates for 2018 were progressive, meaning higher incomes were taxed at higher rates. The tax brackets for 2018 were:

Taxable Income	Tax 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%

Formula used: The tax is calculated by applying the progressive rates to each bracket, with the excess income in each bracket taxed at the higher rate.

Common Deductions

Several deductions can reduce your taxable income. Common deductions for 2018 included:

Basic personal amount: $11,474
Spouse or common-law partner amount: $11,474
Eligible dependents: $3,362 per dependent
Medical expenses: 3% of net income (with a maximum of $3,362)
Donations to registered charities: up to $200

Tax Credits

Tax credits directly reduce the amount of tax you owe. Common credits for 2018 included:

Ontario child benefit: $1,000 per child under 18
Ontario disability support credit: up to $1,000 per year
Ontario homeowners' property tax credit: up to $1,000 per year

Worked Example

Let's calculate the tax for a single person with a taxable income of $50,000 in 2018.

First $44,701 is taxed at 5.05%: $44,701 × 0.0505 = $2,264.25
Next $5,299 ($50,000 - $44,701) is taxed at 9.15%: $5,299 × 0.0915 = $485.75
Total tax: $2,264.25 + $485.75 = $2,750.00

After applying the basic personal amount deduction of $11,474, the taxable income becomes $38,526, and the tax calculation remains the same.

Frequently Asked Questions

What is the difference between federal and provincial tax?

Federal tax is calculated based on your total income, while provincial tax is calculated based on your Ontario income. The provincial tax rates are generally lower than federal rates.

How do I claim deductions and credits?

You can claim deductions and credits on your tax return by providing supporting documentation. The calculator provides estimates based on common deductions and credits.

When is the tax deadline for 2018?

The tax deadline for 2018 was April 30, 2019. However, extensions can be requested.

Can I pay my tax in installments?

Yes, you can pay your tax in installments through the Ontario government's payment plan program.