Ontario and Federal Tax Brackets 2018 Calculator
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Reviewed by Calculator Editorial Team
Calculate your 2018 Ontario and federal income tax using this official tax bracket calculator. The calculator uses the progressive tax rates for both provinces and territories, including the Ontario tax credit and federal tax deductions.
How the 2018 Tax Calculator Works
The 2018 tax calculator uses the official tax brackets for both Ontario and federal taxes. The calculation follows these steps:
- Enter your total taxable income for the year
- The calculator applies the progressive tax rates for both Ontario and federal taxes
- It calculates the total tax payable by combining both provincial and federal taxes
- The result shows your total tax liability and the breakdown by tax bracket
Tax Calculation Formula
Total Tax = Federal Tax + Ontario Tax
Federal Tax = Sum of (Taxable Income × Rate for each bracket)
Ontario Tax = Sum of (Taxable Income × Rate for each bracket)
The calculator uses the exact 2018 tax brackets as established by the Canada Revenue Agency and the Ontario Ministry of Finance. These brackets are progressive, meaning higher income levels are taxed at higher rates.
2018 Ontario and Federal Tax Brackets
The 2018 tax brackets for both federal and Ontario taxes are shown in the following tables:
Federal Tax Brackets 2018
| Taxable Income | Tax Rate |
|---|---|
| $0 - $47,630 | 15% |
| $47,630 - $95,259 | 20.5% |
| $95,259 - $147,667 | 26% |
| $147,667 - $210,371 | 29% |
| $210,371+ | 33% |
Ontario Tax Brackets 2018
| Taxable Income | Tax Rate |
|---|---|
| $0 - $44,702 | 5.05% |
| $44,702 - $89,405 | 9.15% |
| $89,405 - $150,000 | 11.16% |
| $150,000 - $220,000 | 12.16% |
| $220,000+ | 13.16% |
Note: These brackets are for 2018 only. Tax brackets change each year based on government legislation. Always verify with official sources for the most current tax rates.
How to Use This Calculator
- Enter your total taxable income in the calculator input field
- Click the "Calculate" button to compute your tax liability
- Review the results showing your total tax payable and the breakdown by tax bracket
- Use the chart to visualize how your income is taxed at different brackets
The calculator provides a clear breakdown of how much tax you owe at each bracket level. This helps you understand where your income falls in the progressive tax structure.
Example Calculation
Let's calculate the tax for someone earning $100,000 in 2018:
- Federal tax calculation:
- $47,630 × 15% = $7,144.50
- ($95,259 - $47,630) × 20.5% = $9,868.79
- ($100,000 - $95,259) × 26% = $1,220.82
- Total federal tax = $7,144.50 + $9,868.79 + $1,220.82 = $18,234.11
- Ontario tax calculation:
- $44,702 × 5.05% = $2,261.61
- ($89,405 - $44,702) × 9.15% = $4,131.72
- ($100,000 - $89,405) × 11.16% = $1,242.73
- Total Ontario tax = $2,261.61 + $4,131.72 + $1,242.73 = $7,636.06
- Total tax payable = $18,234.11 + $7,636.06 = $25,870.17
This example shows how the progressive tax system applies higher rates to higher income levels. The calculator makes these calculations quickly and accurately for any income amount.
Frequently Asked Questions
- What is the difference between federal and provincial taxes?
- Federal taxes are set by the Canada Revenue Agency and apply to all residents. Provincial taxes are set by each province or territory and apply to residents of that jurisdiction. The total tax you pay is the sum of both federal and provincial taxes.
- Are these tax brackets still valid in 2023?
- No, these brackets are specific to 2018. Tax brackets change each year based on government legislation. Always use the most current tax brackets for accurate calculations.
- How do I find my taxable income?
- Your taxable income is your total income minus any eligible deductions. This typically includes deductions for RRSP contributions, union dues, and medical expenses. Consult a tax professional for personalized advice.
- Does this calculator include the Ontario tax credit?
- No, this calculator shows the basic tax liability before any credits or deductions. The Ontario tax credit is applied after calculating your basic tax liability.
- Where can I find official tax information?
- For official tax information, visit the Canada Revenue Agency website or the Ontario Ministry of Finance website. These sources provide the most accurate and up-to-date tax information.