# Ontario 2013 Tax Rates

With the start of the tax season many wonder what are the published government tax rates, here are the latest rates for 2013, give us a call if you have any tax related questions.

The chart below reproduces the first calculation that has to be made on page 2 of Schedule 1 of the tax package to calculate net federal tax. Page 1 is used to calculate federal non-refundable tax credits.

 Use this column if your taxable income is \$43,561 or less Use this column if your taxable income is more than \$43,561, but not more than \$87,123 Use this column if your taxable income is more than \$87,123, but not more than \$135,054 Use this column if your taxable income is more than \$135,054 Enter your taxable income from line 260 of your return Base amount −        0 −     43,561 −    87,123 −  135,054 Line 1 minus line 2 (this amount cannot be negative) = = = = Federal tax rate ×    15% ×      22% ×      26% ×      29% Multiply the amount on line 3 by the tax rate on line 4 = = = = Tax on the amount from line 2 +       0 +      6,534 +    16,118 +    28,580 Add lines 5 and 6 = = = =

Provincial tax rates
Provinces/territoriesRate(s)
Ontario5.05% on the first \$39,723 of taxable income, +
9.15% on the next \$39,725, +
11.16% on the next \$429,552, +
13.16 % on the amount over \$509,000

## Corporate Tax for companies in Mississauga and Toronto:

### Basic rate

The Ontario basic income tax rate is:

• 14% before July 1, 2010;
• 12% effective July 1, 2010;
• 11.5%, effective July 1, 2011;
• 11% effective July 1, 2012; and
• 10% effective July 1, 2013.

The tax is prorated based on the number of days in the year when the tax year straddles these dates.

### Lower rate

The Ontario small business deduction reduces Ontario basic income tax, resulting in a lower tax rate of 4.5%. Before July 1, 2010, the small business lower tax rate was 5.5%.

*Source Ministry of Finance website.