What’s New for 2021 Tax Returns:

Updated January 2022

Federal Tax

Personal tax rate:

  • Lowest bracket: 15% on the first $49,020
  • Next bracket: 20.5% on income between $49,020 and $98,040
  • Then: 26% on income between $98,040 and $151,978
  • Then: 29% on income between $151,978 and $216,511
  • 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 53.53 %.

Donations:

  • 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%.