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Ontario and Federal Tax Calculator

Reviewed by Calculator Editorial Team

Calculate your estimated Ontario and federal income tax with this free tax calculator. Enter your gross income and deductions to see how much tax you'll owe and your net pay.

How to Use This Calculator

This calculator provides an estimate of your Ontario and federal income tax based on current tax rates. For exact figures, consult a tax professional or use official government tax calculators.

Formula Used

Taxable Income = Gross Income - Deductions

Federal Tax = Taxable Income × Federal Tax Rate

Ontario Tax = Taxable Income × Ontario Tax Rate

Total Tax = Federal Tax + Ontario Tax

Net Pay = Gross Income - Total Tax

Steps to Calculate

  1. Enter your gross annual income in the calculator.
  2. Enter any applicable deductions (RRSP contributions, union dues, etc.).
  3. Click "Calculate" to see your estimated tax and net pay.
  4. Review the breakdown of federal and Ontario taxes.

This calculator uses progressive tax brackets for both federal and Ontario taxes. The rates change annually with tax law updates.

Ontario and Federal Tax Brackets

Both Ontario and federal governments use progressive tax systems where higher incomes are taxed at higher rates. The current tax brackets (as of 2023) are shown below.

Federal Tax Brackets

Taxable Income Tax Rate
$0 - $53,359 15%
$53,359 - $106,717 20.5%
$106,717 - $165,430 26%
$165,430 - $235,675 29%
$235,675+ 33%

Ontario Tax Brackets

Taxable Income Tax Rate
$0 - $49,231 5.05%
$49,231 - $98,463 9.15%
$98,463 - $150,000 11.16%
$150,000 - $220,000 12.16%
$220,000+ 13.16%

These rates are subject to change each year. Always verify with official government sources for the most current tax brackets.

Example Calculation

Let's calculate the tax for a person with $80,000 gross income and $10,000 in deductions.

  1. Taxable Income = $80,000 - $10,000 = $70,000
  2. Federal Tax:
    • $53,359 × 15% = $8,003.85
    • ($70,000 - $53,359) × 20.5% = $3,300.10
    • Total Federal Tax = $8,003.85 + $3,300.10 = $11,303.95
  3. Ontario Tax:
    • $49,231 × 5.05% = $2,476.36
    • ($70,000 - $49,231) × 9.15% = $1,816.64
    • Total Ontario Tax = $2,476.36 + $1,816.64 = $4,293.00
  4. Total Tax = $11,303.95 + $4,293.00 = $15,596.95
  5. Net Pay = $80,000 - $15,596.95 = $64,403.05

This example shows that $80,000 gross income with $10,000 deductions results in about $15,597 in total tax and $64,403 in net pay.

Common Questions

How accurate is this calculator?
This calculator provides an estimate based on current tax brackets. For exact figures, consult a tax professional or use official government tax calculators.
Do I need to pay both federal and Ontario taxes?
Yes, Ontario residents pay both federal and provincial taxes. The total tax is the sum of both amounts.
Are there any deductions not included in this calculator?
This calculator includes common deductions like RRSP contributions. Other deductions may apply depending on your situation.
When do tax brackets change?
Tax brackets are updated annually with the federal and provincial budgets. Always verify with official sources for the most current rates.