CRA & Revenu Québec

Ontario Provincial Income Tax Brackets, Tax Rates, & Credits

Ontario has an 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 provincial tax rates link and the Ontario page for this year’s tax bracket rates.

Ontario’s Income Tax Brackets for Tax Year 2020

5.05% on the first portion of the taxable income of $44,740 or less, +
9.15% on the next portion of taxable income over $44,742 up to $89,482, +
11.16% on the next portion of taxable income over $89,482 up to $150,000, +
12.16% on the next portion of taxable income over $150,000 up to $220,000, +
13.16 % on the portion of taxable income over $220,000

Ontario Provincial Tax 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.
  • Child Care Subsidy: You may qualify to get help paying for childcare in Ontario. Learn more here.
  • The Low-income Individuals and Families Tax (LIFT) Credit: Provides up to $850 in Ontario Personal Income Tax relief to low-income Ontario taxpayers who have employment income, including those earning minimum wage. Learn more.
  • Ontario Childcare Access and Relief from Expenses (CARE) Tax Credit: This is a refundable tax credit based on family income and few other criteria. Learn more here.

For more information on Ontario Credits, please review this link.

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 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.

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. They also have ‘My Business Account’, which lets you easily track payroll, GST/HST, and other business taxes owed to them.

TurboTax has been serving Canadians since 1993. It is the #1 selling tax preparation software across the country. We have a variety of product options to serve every individual’s needs. Recently added a LIVE service to enable our customers to have access to tax experts at the tip of your fingers. Go ahead and give it a try! Easy to use with a choice of support options to assist you with all your taxation needs.

References & Resources:

Provincial tax brackets

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