TaxTips.ca
Canadian Tax and
Financial Information
Ontario 2018 Proposed Personal Income Tax Rates

Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with TaxTips.ca!

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources



Ontario
Tax Rates   ->   Current Marginal Tax Rates -> Ontario Personal Income Tax Rates

Ontario 2018 Personal Marginal Income Tax Rates - Current and Proposed

The Ontario 2018 Budget proposes to eliminate the surtax, and revise the personal income tax brackets and rates, as per the table below.  The problem with the surtax is that it is increases the amount of personal tax credits for taxpayers who are subject to the surtax.

Please read the article Understanding the Tables of Personal Income Tax Rates.

Ontario Personal Income Tax Brackets and Tax Rates

Current 2018 Tax Brackets & Rates Proposed 2018 Tax Brackets and Rates
Taxable Income Tax Rates Taxable Income Tax Rates
first $42,960 5.05% first $42,960 5.05%
over $42,960 up to $85,923 9.15% over $42,960 up to $71,500 9.15%
over $85,923 up to $150,000 11.16% over $71,500 up to $82,000 11.00%
over $150,000 up to $220,000 12.16% over $82,000 up to $92,000 13.50%
over $220,000 13.16% over $92,000 up to $150,000 17.50%
  over $150,000 up to $220,000 19.00%
over $220,000 20.53%

Combined Federal & Ontario Tax Brackets and Tax Rates Including Surtaxes

Taxable Income Current Marginal Tax Rates Taxable Income Proposed Marginal Tax Rates
Other
Income
Capital
Gains
Canadian Dividends Other
Income
Capital
Gains
Canadian Dividends
Eligible Non-Eligible Eligible Non-Eligible
first $42,960 20.05% 10.03% -6.86% 8.00% first $42,960 20.05% 10.03% -6.86% 6.13%
over $42,960 up to $46,605 24.15% 12.08% -1.20% 12.76% over $42,960 up to $46,605 24.15% 12.08% -1.20% 12.76%
over $46,605 up to $75,657 29.65% 14.83% 6.39% 19.14% over $46,605 up to $71,500 29.65% 14.83% 6.39% 19.14%
over $75,657 up to $85,923 31.48% 15.74% 8.92% 21.26% over $71,500 up to $82,000 31.50% 15.75% 8.94% 21.29%
over $85,923 up to $89,131 33.89% 16.95% 12.24% 24.06% over $82,000 up to 92,000 34.00% 17.00% 12.39% 24.19%
over $89,131 up to $93,208 37.91% 18.95% 17.79% 28.72% over $92,000 up to $93,208 38.00% 19.00% 17.91% 28.83%
over $93,208 up to $144,489 43.41% 21.70% 25.38% 35.10% over $93,208 up to $144,489 43.50% 21.75% 25.50% 35.21%
over $144,489 up to $150,000 46.41% 23.20% 29.52% 38.58% over $144,489 up to $150,000 46.50% 23.25% 29.64% 38.69%
over $150,000 up to $205,842 47.97% 23.98% 31.67% 40.39% over $150,000 up to $205,842 48.00% 24.00% 31.71% 40.43%
over $205,842 up to $220,000 51.97% 25.98% 37.19% 45.03% over $205,842 up to $220,000 52.00% 26.00% 37.23% 45.07%
over $220,000 53.53% 26.76% 39.34% 46.84% over $220,000 53.53% 26.77% 39.34% 46.84%

Marginal tax rate for dividends is a % of actual dividends received (not grossed-up taxable amount).
Marginal tax rate for capital gains is a % of total capital gains (not taxable capital gains).
Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is 17%.
The surtax is calculated before deducting dividend tax credits.
For more information see Ontario dividend tax credits.
Marginal tax rates do not include the Ontario Health Premium, which increases the above rates by up to 1.2%

Ontario Surtaxes

Current Proposed
Surtax rate (included in above rates) 20% 36%

No surtax

Surtax is on ON tax greater than $4,638 $5,936
Person with only basic personal amount - surtax starts at taxable income of $75,657 $89,131

The 36% surtax is in addition to the 20% surtax, for a total surtax of 56%.
The surtax increases the 13.16% tax rate to 20.53% (13.16% x 1.56).
Surtaxes are calculated before deducting dividend tax credits.

 

Copyright © 2002 Boat Harbour Investments Ltd.

Revised: March 28, 2018

 

Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.