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%.