Ontario - Combined federal and provincial personal income tax rates

Eligible

Other

Lower

Upper

Basic

Rate on

dividend

Capital

limit limit tax

excess income

income

gains

–$ to 15,000$ –$ 0.00% 0.00% 0.00% 0.00%

15,001 to 17,291 – 15.00% 0.00% 6.87% 7.50%

17,292 to 22,716

344 25.10% 0.00% 11.61% 12.55%

22,717 to 49,231 1,705 20.05% 0.00% 9.24% 10.03%

49,232 to 53,359 7,022 24.15% 0.00% 13.95% 12.08%

53,360 to 86,696 8,019 29.65% 7.56% 20.28% 14.83%

86,697 to 98,463 17,903 31.48% 8.92% 22.38% 15.74%

98,464 to 102,139 21,607 33.89% 12.24% 25.16% 16.95%

102,140 to 106,717 22,853 37.91% 17.79% 29.78% 18.95%

106,718 to 150,000 24,589 43.41% 25.38% 36.10% 21.70%

150,001 to 165,430 43,378 44.97% 27.53% 37.90% 22.48%

165,431 to 220,000

50,316 48.29% 32.11% 41.71% 24.14%

220,001 to 235,675

76,666 49.85% 34.26% 43.50% 24.92%

235,676 and up 84,479 53.53% 39.34% 47.74% 26.76%

A chart of the most common non-refundable tax credits is available on the next page

Source: Ernst & Young Electronic Publishing Services Inc.

Taxable income

Marginal rate on

Ontario

1. The tax rates include the provincial surtaxes and reflect budget proposals and news releases up to June 1, 2023. The rates do not include the Ontario

Health Premium (see note 5 below). Where the tax is determined under the alternative minimum tax provisions (AMT), the above table is not

applicable. AMT may be applicable where the tax otherwise payable is less than the tax determined by applying the relevant AMT rate to the

individual’s taxable income adjusted for certain preference items. Effective for 2017 and subsequent taxation years, provincial surtax and the Ontario

tax reduction are pro-rated if the individual is a multijurisdictional filer.

2. The tax determined by the table should be reduced by the applicable federal and provincial tax credits (see chart below), other than the basic personal

tax credits, which have been reflected in the calculations (see Note 7 below).

3. The rates apply to the actual amount of taxable dividends received from taxable Canadian corporations. Eligible dividends are those paid by public

corporations and private companies out of earnings that have been taxed at the general corporate tax rate (the dividend must be designated by the

payor corporation as an eligible dividend). Where the dividend tax credit exceeds the federal and provincial tax otherwise payable on the dividends,

the rates do not reflect the value of the excess credit that may be used to offset taxes payable from other sources of income. This assumption is

consistent with prior year rates. Where applicable, the provincial surtax has been applied prior to deducting the dividend tax credit.

4. The rates apply to the actual amount of the capital gain. The capital gains exemption on qualified farm or fishing property and small business

corporation shares may apply to eliminate the tax on those specific properties.

5. Individuals resident in Ontario on December 31, 2023 with taxable income in excess of $20,000 must pay the Ontario Health Premium. The premium

ranges from $nil to $900 depending on the individual's taxable income, with the top premium being payable by individuals with taxable income in

excess of $200,599.

6. Individuals resident in Ontario on December 31, 2023 with taxable income up to $17,291 pay no provincial income tax as a result of a low-income tax

reduction. The low-income tax reduction ($274 of Ontario tax) is clawed back for income in excess of $17,291 until the reduction is eliminated,

resulting in an additional 5.05% of provincial tax on income between $17,292 and $22,716.

7. The federal basic personal amount comprises two elements: the base amount ($13,520 for 2023) and an additional amount ($1,480 for 2023).

The additional amount is reduced for individuals with net income in excess of $165,430 and is fully eliminated for individuals with net income in

excess of $235,675. Consequently, the additional amount is clawed back on net income in excess of $165,430 until the additional tax credit of

$222 is eliminated; this results in additional federal income tax (e.g., 0.32% on ordinary income) on net income between $165,431 and

$235,675.

Ontario

Combined federal and provincial personal income tax rates - 2023

1,5

Federal

Provincial

credit

2,7

Amount of credits:

Basic personal credit (see notes 2 and 7 above)

3,4

2,028$ 935$

Spousal credit (reduced when spouse’s income

over $0 (federal) and $1,007 (provincial))

3,4

2,028 794

Equivalent-to-spouse credit (reduced when

dependant’s income over $0 (federal) and $1,007 (provincial))

3,4

2,028 794

Caregiver credit (reduced when particular person’s

income over $18,783 (federal) and $19,133 (provincial))

1,200

441

Age credit (65 and over)

1,259 293

Disability credit

1,414 755

Pension income (maximum)

300

129

Canada employment credit

205

Credits as a percentage of:

Tuition fees

15.00%

Medical expenses

15.00% 7.88%

Charitable donations

– First $200

15.00%

7.88%

– Remainder

29% / 33% 17.41%

CPP contributions

15.00% 7.88%

EI premiums

15.00%

7.88%

Source: Ernst & Young Electronic Publishing Services Inc.

Ontario

Federal and provincial personal tax credits - 2023

1. This table lists the most common non-refundable tax credits; other non-refundable and refundable credits may be available.

2. The tax value of each provincial tax credit includes the reduction in provincial surtax as it would apply to taxpayers in the highest tax bracket (except for the

age credit).

3. The federal tax value of the basic personal credit, the spousal credit and the equivalent-to-spouse credit represents the amount available to

taxpayers in the highest tax bracket. An additional amount may be available for individuals with taxable income below $235,675 (see Note 7 to the

chart above).

4. A federal caregiver tax credit of $375 may be available in respect of a spouse, dependant or child who is dependent on the individual by reason of mental or

physical infirmity.

5. The maximum federal age credit of $1,259 occurs at $42,335 of net income and declines to nil as net income rises to $98,309. The maximum provincial

age credit of $293 occurs at $43,127 of net income and declines to nil as net income rises to $81,747.

6. A federal supplement of $825 is available for an individual who is under 18 years of age, reduced by the total child care and attendant care expenses

claimed for the individual in excess of $3,221. A provincial supplement of $440 is available for an individual who is under 18 years of age, reduced for the

total child care and attendant care expenses claimed for the individual in excess of $3,275.

7. A provincial non-refundable tax credit may be available for low-income working individuals and families, providing a maximum credit of $875 for a single

individual and $1,750 for couples. The credit is reduced by 5% of the greater of the individual’s net income exceeding $32,500 and family net income

exceeding $65,000.

8. The credit applies to eligible medical expenses that exceed the lesser of $2,635 and 3% of net income. The provincial credit applies to eligible medical

expenses that exceed the lesser of $2,686 and 3% of net income.

9. The federal tax credit rate of 33% applies to charitable donations in excess of $200 to the extent the individual has taxable income in excess of $235,675;

otherwise, a federal tax credit rate of 29% applies.

10. One-half of CPP paid by self-employed individuals is deductible in computing taxable income.