Ontario Income Tax Calculator 2020 & 2021.

Income Tax Calculator

Estimate your 2020 & 2021 total income taxes with only a few details about your income

Tax Year
Your employment status
Employee
Employment Income Employment income and taxable benefits.
Other Income All other incomes such as rental income, interest, EI, and CPP.
Capital Gains Capital gains are the growth in value of investments.
Eligible DividendsAn qualified dividend is a taxable dividend paid by a Canadian public company, earned by a resident Canadian citizen.
Ineligible DividendsAn qualified dividend is a taxable dividend paid by a Canadian private company, earned by a resident Canadian citizen.
Do you want to deduct health premium from the income?
No

Results

Total Income
$ 50,000
Total Tax
$ 11,023.54
Income Tax
$ 7,792.29
EI Premiums
$ 790
CPP Contribution
$ 2,441.25
After-Tax Income
$ 38,976.46
Average Tax Rate
15.58%
Marginal Tax Rate
29.65%
Canada Federal and Ontario tax brackets 2020
Your taxable income places you in the following tax brackets.
Federal tax bracketFederal tax rates
Less than $13,229 0%
$13,230 to $48,53515%
$48,536 to $97,06920.5%
$97,070 to $150,47326%
$150,474 to $214,36829%
More than $214,369 33%
Ontario tax bracketOntario tax rates
Less than $15,714 0%
$15,715 to $44,7405.05%
$44,741 to $89,4829.15%
$89,483 to $150,00011.16%
$150,001 to $220,00012.16%
More than $220,001 13.16%

Ontario Income Tax Brackets

Ontario income tax rates will be staying the same in 2021. What is changing is the level of income in the first two tax brackets.

Ontario increases their provincial income thresholds and the basic personal amount through changes in the consumer price index (CPI). This is called the indexing factor. Ontario's indexing factor for 2021 is 0.9%.

The amount of taxable income that applies to the first tax bracket at 5.05% is increasing from $44,740 to $45,142. The second tax bracket at 9.15% is increasing to an upper range of $90,287 from the previous $89,482.

The Ontario Basic Personal Amount was $10,783 in 2020. For 2021, the basic personal amount is increasing to $10,880. If you make less than $10,880, then you are exempt from Ontario’s provincial income tax. You may still need to pay EI premiums and CPP contributions.

Ontario Provincial Income Tax Changes 2021

20202021Rate
Less than $10,783Less than $10,8800%
$10,784 to $44,740$10,881 to $45,1425.05%
$44,741 to $89,482$45,143 to $90,2879.15%
$89,483 to $150,000$90,287 to $150,00011.16%
$150,001 to $220,000$150,001 to $220,00012.16%
More than $220,001More than $220,00113.16%

Ontario Health Premium

The Ontario Health Premium helps fund for healthcare services in the province. The health premium is usually deducted automatically from your pay if you are an employee. Otherwise, the health premium is paid when you file your personal income tax return.

The Ontario Health Premium is only paid if you make more than $20,000. If you make less than $20,000 a year, you will not be required to pay the premium.

Self-employed workers who make more than $20,000 a year are required to pay the health premium. Seniors who make more than $20,000 are also required to pay the health premium. This includes income from a pension, Old Age Security (OAS), and Canada Pension Plan (CPP) benefits.

Self-employed workers will need to complete form ON428 to pay their premium. Seniors can choose to have the premium automatically deducted from their OAS and CPP benefits by completing form ISP-3520.

The maximum Ontario Health Premium for 2021 is $900.

Ontario Health Premium 2021

IncomeOntario Health Premium (Lesser of)
$20,000 or less$0
$20,001 to $36,000$300 or 6% of income above $20,000
$36,001 to $48,000$450 or $300 plus 6% of income above $36,000
$48,001 to $72,000$600 or $450 plus 25% of income above $48,000
$72,001 to $200,000$750 or $600 plus 25% of income above $72,000
$200,001 or more$900 or $750 plus 25% of income above $200,000

Ontario Surtax

The Ontario Surtax is a tax on tax paid. If you have to pay more than a certain amount of tax, you will need to pay an additional surtax on that tax.

Ontario Surtax Rates 2021

Provincial Tax PayableOntario Surtax
$4,874 or less$0
$4,875 to $6,23720% of provincial tax payable over $4,874
$6,238 or more20% of provincial tax payable over $4,874 plus 36% of provincial tax payable over $6,237

Canada Pension Plan

All workers over the age of 18 who make more than $3,500 will be required to make CPP contributions on their earnings over $3,500. Self-employed workers who make more than $3,500 must also make CPP contributions.

CPP Contribution Rate

YearMaximum Contributory EarningsContribution Rate (Employee/Employer)Combined Contribution Rate
2021$58,1005.45%10.9%
2020$55,2005.25%10.5%
2019$53,9005.10%10.2%
2018$52,4004.95%9.9%
2017$51,8004.95%9.9%

Source: Canada Revenue Agency

Employment Insurance

All workers must pay premiums towards the federal employment insurance program.

Self-employed workers are not required to do so, however they can still enroll if they wish to do so. Self-employed workers are not eligible for regular EI benefits which are for loss of work. They are only eligible for special EI benefits, such as sickness benefits.

EI Premium Rates

YearMaximum Annual Insurable EarningsEI Premium RateMaximum Employee PremiumMaximum Employer Premium
2021$56,3001.58%$889.54$1,245.36
2020$54,2001.58%$856.36$1,198.90
2019$53,1001.62%$860.22$1,204.31
2018$51,7001.66%$858.22$1,201.51
2017$51,3001.63%$836.19$1,170.67

Source: Canada Revenue Agency

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