Federal Tax

Personal tax rate:

• Lowest bracket: 15% on the first $53,359
• Next bracket: 20.5% on income between $53,359 and $106,717
• Then: 26% on income between $106,717 and $165,430
• Then: 29% on income between $165,430 and $235,675
• 33% on all income over $235,675

Each province and territory applies its own tax, on top of the federal tax. Non-residents who are
required to file a tax return in Canada pay an additional federal premium in place of the
provincial amount.

Ontario Tax Rates for 2023

• $0 to $49,231 of income (5.05%)
• More than $49,231 to $98,463 of income (9.15%)
• More than $98,463 to $150,000 of income (11.16%)
• More than $150,000 to $220,000 of income (12.16%)
• More than $220,000 of income (12.16%)
• The top rate an individual in Ontario can expect to pay, combining both federal and provincial taxes, is roughly 53.53 %.

Ontario also has a Health Tax Premium. In addition to income taxes, you pay the health premium if you are a resident of Ontario, and your employment or pension income is more than $20,000 a year. In most cases the premium is automatically deducted from your pay or pension. If you are self-employed, it will be calculated at the time of tax preparation. The health premium runs anywhere between $300 to a maximum of $900 and is based on taxable income.

Basic Personal Amount

This is the amount of income you may earn before income tax kicks in. In 2023 the basic personal amount increased to $15,000.