Federal Tax

Personal tax rate:

• Lowest bracket: 15% on the first $55,867
• Next bracket: 20.50% on income between $55,867 and $111,733
• Then: 26% on income between $111,733 and $173,205
• Then: 29.32% on income between $173,205 and $246,752
• 33% on all income over $246,752

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 2024

• $0 to $51,446 of income (5.05%)
• More than $51,446 to $102,894 of income (9.15%)
• More than $102,894 to $150,000 of income (11.16%)
• More than $150,000 to $220,000 of income (12.16%)
• More than $220,000 of income (13.16%)
• The top rate an individual in Ontario can expect to pay, combining both federal and provincial taxes, is roughly 53.53 %.

Ontario Health Premium

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.

Canada Pension Plan Contributions

If employed, Canada Pension Plan contributions (CPP) will be withheld from your pay cheques.  If self-employed, CPP will be calculated at the time of filing your tax return.  The rate for self-employed contributions is close to 11% of net self-employment income (after all expenses are deducted) to a maximum of $8,111.  Keep this in mind if you do not have CPP withheld at source as it is a significant amount of money!

Basic Personal Amount

This is the amount of income you may earn before income tax kicks in. In 2024 the basic personal amount increased to $15,705.