Tax Return Calculator Ontario 2020

Use this tax return calculator to estimate your 2020 Ontario income tax liability. The calculator follows the 2020 tax rates and brackets while providing a simplified view of the tax process. For official tax advice, consult the Canada Revenue Agency (CRA) or a certified tax professional.

How to Use This Calculator

This calculator provides an estimate of your Ontario tax return for 2020. Follow these steps:

Enter your total taxable income for 2020
Select your filing status (Single, Married, or Other)
Click "Calculate" to see your estimated tax liability
Review the breakdown of your tax calculation
Use the results to prepare your official tax return

Important Note

This calculator provides an estimate only. Your actual tax liability may differ based on your specific circumstances. Always consult the Canada Revenue Agency (CRA) or a tax professional for official tax advice.

Ontario Tax Basics 2020

Ontario uses a progressive tax system where higher incomes are taxed at higher rates. The 2020 tax rates for Ontario are as follows:

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%
$220,001+	13.16%

Ontario also has provincial sales tax (PST) rates that may affect your taxable income. The standard PST rate is 8% for most goods and services.

Calculating Your Income

Your taxable income is calculated by subtracting allowable deductions from your total income. Key income sources include:

Employment income
Self-employment income
Investment income (interest, dividends, capital gains)
Pension income
Other taxable income

Taxable Income Formula

Taxable Income = Total Income - Allowable Deductions

Deductions and Credits

Common deductions that can reduce your taxable income include:

RRSP contributions
Medical expenses
Donations to registered charities
Home office expenses
Moving expenses

Tax credits directly reduce your tax liability. Common credits include:

Canada Child Benefit (CCB)
Provincial childcare expenses
Home buyers' plan
Lifetime learning credits

Example Calculation

Let's calculate the tax for a single filer with $50,000 in taxable income:

$0 - $44,701: $44,701 × 5.05% = $2,263.30
$44,702 - $50,000: ($50,000 - $44,701) × 9.15% = $499.00
Total tax: $2,263.30 + $499.00 = $2,762.30

This example shows the progressive nature of Ontario's tax system where higher income brackets are taxed at higher rates.

Filing Your Return

After calculating your tax, follow these steps to file your return:

Gather all necessary documentation
Complete Form T1 General or Form T1E if eligible
Submit your return electronically or by mail
Pay any balance due or claim a refund

You can file your return online through the Canada Revenue Agency (CRA) website or use tax preparation software.

Frequently Asked Questions

Is this calculator official?

No, this calculator provides an estimate based on 2020 tax rates. For official tax advice, consult the Canada Revenue Agency (CRA) or a certified tax professional.

What if my income changes during the year?

This calculator uses your total taxable income for the year. If your income changes significantly during the year, you may need to adjust your withholding or make estimated payments.

Are there any tax-free allowances?

Yes, Ontario provides a basic personal amount (BPA) that reduces your taxable income. For 2020, the BPA for a single filer was $12,069.

What about provincial sales tax (PST)?

PST is collected by retailers and remitted to the government. It's not directly reflected in this calculator but may affect your overall taxable income.

Can I get a refund if I paid too much tax?

Yes, if you paid more in taxes than you owe, you may be eligible for a refund. The CRA will calculate your final refund amount after reviewing your return.