Tax Calculator 2020 Ontario
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Reviewed by Calculator Editorial Team
Calculate your 2020 Ontario income tax with this official tax calculator. This tool provides accurate results based on the 2020 Ontario tax rates and brackets. Simply enter your taxable income and the calculator will determine your provincial tax liability.
How to Use This Calculator
Using this tax calculator is simple and straightforward:
- Enter your total taxable income for the 2020 tax year in the designated field.
- Click the "Calculate" button to process your information.
- Review the results displayed, which show your provincial tax liability.
- Use the information to complete your tax return or for personal financial planning.
This calculator uses the 2020 Ontario tax rates and brackets. For current year calculations, please use our updated tax calculator.
Tax Calculation Formula
The Ontario provincial tax is calculated using progressive tax brackets. The formula used is:
The taxable income is calculated by subtracting deductions and credits from your total income. The exact formula varies based on your specific situation, but this calculator uses the standard progressive tax calculation method.
2020 Ontario Tax Brackets
The 2020 Ontario tax brackets are as follows:
| Taxable Income | Tax Rate |
|---|---|
| $0 - $44,703 | 5.05% |
| $44,704 - $89,407 | 9.15% |
| $89,408 - $150,000 | 11.16% |
| $150,001 - $220,000 | 12.16% |
| Over $220,000 | 13.16% |
These brackets are subject to change each year. For the most current information, consult the Canada Revenue Agency or a certified tax professional.
Example Calculation
Let's calculate the Ontario provincial tax for someone with a taxable income of $95,000 in 2020.
- The first $44,703 is taxed at 5.05%: $44,703 × 0.0505 = $2,265.87
- The next $44,699 ($89,407 - $44,703) is taxed at 9.15%: $44,699 × 0.0915 = $4,070.36
- The remaining $5,600 ($95,000 - $89,407) is taxed at 11.16%: $5,600 × 0.1116 = $626.24
- Total Ontario provincial tax: $2,265.87 + $4,070.36 + $626.24 = $6,962.47
This example shows that someone earning $95,000 in Ontario would owe approximately $6,962.47 in provincial taxes for the 2020 tax year.
Frequently Asked Questions
What is the difference between federal and provincial taxes in Ontario?
In Ontario, you pay both federal and provincial taxes. The federal tax is calculated based on your total income, while the provincial tax is calculated based on your Ontario income. The combined rate is what you'll see on your tax return.
Are there any deductions or credits that can reduce my tax liability?
Yes, there are various deductions and credits available that can reduce your tax liability. Common examples include the Canada Child Benefit, Medical Expense Deduction, and Home Buyers' Plan. These can significantly impact your final tax amount.
When should I use this calculator versus a tax professional?
This calculator provides a good estimate of your provincial tax liability. However, for an exact calculation and to ensure you're claiming all available deductions and credits, it's best to consult with a certified tax professional.