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

Ontario 2021 and 2020 Personal Marginal Income Tax Rates

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

The Federal tax brackets and personal tax credit amounts are increased for 2021 by an indexation factor of 1.010.

The Ontario tax brackets and personal tax credit amounts are increased for 2021 by an indexation factor of 1.009, except for the $150,000 and $220,000 bracket amounts, which are not indexed for inflation.

The indexation factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.

Ontario Personal Income Tax Brackets and Tax Rates
2021 Taxable Income 2021 Tax Rates 2020 Taxable Income 2020 Tax Rates
first $45,142 5.05% first $44,740 5.05%
over $45,142 up to $90,287 9.15% over $44,740 up to $89,482 9.15%
over $90,287 up to $150,000 11.16% over $89,482 up to $150,000 11.16%
over $150,000 up to $220,000 12.16% over $150,000 up to $220,000 12.16%
over $220,000 13.16% over $220,000 13.16%

 

Combined Federal & Ontario Tax Brackets and Tax Rates Including Surtaxes
2021 Taxable Income 2021 Marginal Tax Rates 2020 Taxable Income 2020 Marginal Tax Rates
Other
Income
Capital
Gains
Canadian Dividends Other
Income
Capital
Gains
Canadian Dividends
Eligible Non-Eligible Eligible Non-Eligible
first $45,142 20.05% 10.03% -6.86% 9.24% first $44,740 20.05% 10.03% -6.86% 9.24%
over $45,142 up to $49,020 24.15% 12.08% -1.20% 13.95% over $44,740 up to $48,535 24.15% 12.08% -1.20% 13.95%
over $49,020 up to $79,505 29.65% 14.83% 6.39% 20.28% over $48,535 up to $78,783 29.65% 14.83% 6.39% 20.28%
over $79,505 up to $90,287 31.48% 15.74% 8.92% 22.38% over $78,783 up to $89,482 31.48% 15.74% 8.92% 22.38%
over $90,287 up to $93,655 33.89% 16.95% 12.24% 25.16% over $89,482 up to $92,825 33.89% 16.95% 12.24% 25.16%
over $93,655 up to $98,040 37.91% 18.95% 17.79% 29.78% over $92,825 up to $97,069 37.91% 18.95% 17.79% 29.78%
over $98,040 up to $150,000 43.41% 21.70% 25.38% 36.10% over $97,069 up to $150,000 43.41% 21.70% 25.38% 36.10%
over $150,000 up to $151,978 44.97% 22.48% 27.53% 37.90% over $150,000 up to $150,473 44.97% 22.48% 27.53% 37.90%
over $151,978 up to $216,511 48.29% 24.14% 32.11% 41.72% over $150,473 up to $214,368 48.19% 24.09% 31.97% 41.60%
over $216,511 up to $220,000 51.97% 25.98% 37.19% 45.95% over $214,368 up to $220,000 51.97% 25.98% 37.19% 45.95%
over $220,000 53.53% 26.76% 39.34% 47.74% over $220,000 53.53% 26.76% 39.34% 47.74%
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 15%.
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 25%.

 

Ontario Surtaxes
2021 2020
Surtax rate (included in above rates) 20% 36% Surtax rate (included in above rates) 20% 36%
Surtax is on ON tax greater than $4,874 $6,237 Surtax is on ON tax greater than $4,830 $6,182
Person with only basic personal amount - surtax starts at taxable income of $79,505 $93,655 Person with only basic personal amount - surtax starts at taxable income of $78,783 $92,825
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.

 

Ontario Basic Personal Amount
2021 Personal Amount 2021 Tax Rate 2020 Personal Amount 2020 Tax Rate
$10,880 5.05% $10,783 5.05%
Federal Basic Personal Amount
2021 Personal Amount (1) 2021 Tax Rate 2020 Personal Amount (1) 2020 Tax Rate
$13,808 15% $13,229 15%

(1) See the federal tax rates page for information on the federal personal amount increase.

The marginal tax rates above have been adjusted to reflect these changes.

Copyright © 2002 Boat Harbour Investments Ltd.

Revised: November 17, 2020

 

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

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