Key takeaways
  1. Ontario uses a progressive tax structure and its residents file income taxes yearly.
  2. Avoid interest and penalties on your income tax return by filing your return by the April 30 deadline.
  3. Register for CRA My Account to simplify your tax filing process.

Ontario’s personal income tax brackets for Tax Year 2022

Tax Rate

Tax Bracket

Taxable Annual Income

5.05% on the first $46,226 $46,226
9.15% on the next $46,228over $46,226 up to $92,454
11.16%on the next $57,546over $92,454 up to $150,000
12.16% on the next $70,000over $150,000 up to $220,000
13.16% on the portion over $220,000 over $220,000

For 2021 tax rates, review this link from the Canadian government.

Ontario’s progressive tax rate structure

As with most provinces, Ontario uses a progressive tax structure and its residents file income taxes yearly. The amount Ontario residents 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 tax brackets increase each year, based on inflation. 

Basic personal amounts are the allowable amount of income that you can earn before you must start paying taxes. For the 2022 tax year, the Ontario basic personal amount is $11,141, while the federal BPA is $14,398.

Visit the CRA’s provincial tax rates link and the Ontario page for this year’s tax information.

Ontario’s provincial income tax credits

Ontario has an income tax rate system similar to other Canadian provinces. Many of the provincial taxes and credits for residents of Ontario complement similar credits at the federal level, but there are some unique credits for residents of Ontario. Some are listed below:

 To calculate your credits, this page will help you do the math.

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. 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, ensure to file your return by April 30.

Paying income taxes owed to the CRA

CRA’s ‘My Account, is an online portal where you can view your benefits, credits, and other tax information important to you. They also have ‘My Business Account’, which lets you easily track payroll, GST/HST, and other business taxes owed to them.