Ontario
Tax Rates -> 2020 and 2021 Tax Rates -> Ontario Personal Income Tax Rates
Ontario 2021 and 2020 Personal Marginal 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.
Tax Tip: read the article Understanding the Tables of Personal Income Tax Rates, especially if you are trying to compare the rates below to the marginal tax rates in the Basic Tax Calculator.
| 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(1) | 48.29% | 24.14% | 32.11% | 41.72% | over $150,473 up to $214,368(1) | 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%. |
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| 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. |
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| 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: October 26, 2023