What’s New for 2020 Tax Returns:
Federal Tax
Personal tax rate:
- Lowest bracket: 15% on the first $48,535
- Next bracket: 20.5% on income between $48,535 and $97,069
- Then: 26% on income between $97,069 and $150,473
- Then: 29% on income between $150,473 and $214,368
- 33% on all income over $214,368. The top rate an individual in Ontario can expect to pay, combining both Federal and Provincial taxes is roughly 53.34 %.
Donations:
- High income individuals taxed at the new 33% rate, will be eligible for a higher (33% up from 29%) donation tax credit to the extent their income exceeds $214,368
- The first $200 of charitable donations receives a tax credit of 15%
- Amounts above $200 are eligible for a 29% tax credit, however, if you are a top tax bracket earner, that credit increases to 33%.