CRA & Revenu Québec

Ontario Tax Brackets & Income Tax Rates 2018

Ontario has a income tax rate system similar to other Canadian provinces.

Many of the provincial taxes and credits for residents of Ontario compliment similar credits at the federal level, but there are some unique credits for residents of Ontario.

Progressive Tax Rate Structure

As with most provinces, Ontario uses a progressive tax structure and its residents file income taxes yearly. Their amount they pay depends on how much money they earn and the bracket they fall into. The tax bracket they fall into is not the full picture though. Personal income taxes follow something called a marginal tax rate system that taxes income in segments. The

The tax brackets increase each year, based on inflation. Visit the CRA’s Ontario page for this year’s tax bracket rates.

Ontario’s Tax Brackets for Tax Year 2018

  • 5.05%:  on the first $42,201
  • 9.15%: over $42,201 up to $84,404
  • 11.16%: over $84,405 up to $150,000
  • 12.16%: over $150,001 up to $220,000
  • 16%: over $220,001

Ontario Credits

  • Ontario Trillium Benefit: This benefit combines the Ontario Sales Credit, the Ontario Energy and Property Tax Credit and the Northern Ontario Energy Credit. Learn more.
  • Healthy Homes Renovation Credit: If you’re 65 years or older and make renovations to your home to make it safer and more accessible, this credit is for you. Learn more.

Avoiding Interest and Penalties

The CRA charges a late penalty  that is equal to 5% of the balance you owe and then also an additional 1% for every month you are late paying them. You will be safe as long as your income tax return is filed by the April 30 2019 deadline. If you pay by this date you will not have to worry about any costly penalties or risk of an audit.

If you want to avoid interest and penalties on your income tax return, be sure that you know the due dates each year, and if you anticipate owing taxes, consider completing and submitting your return by April 30 2019.

Paying  Income Taxes Owed to the CRA

The CRA offers an online platform called ‘My Account’, which is an online portal where you can view your benefits, credits, and other tax information important to you. The Canada Revenue Agency also offers some called ‘My Business Account’, which lets you easily track payroll, GST/HST, and other business taxes owed to them.

References & Resources:

Provincial tax brackets

Looking for an income tax calculator for your province or territory?