If you live in Ontario, you would like to know where Ontario Income Tax rates are in comparison with other provinces in Canada. You would like to know if you were living in a province where you needed to pay the highest provincial tax or the lowest, or somewhere in the middle. Before you have an accountant calculate your personal and family annual income, here are a few interesting facts about Ontario Income Tax.
Although in Ontario in 2013 there has been an increase in all tax brackets by 1.8% and an increase in 1% for income over $509,000, Ontario is still relatively lucky in comparison with other provincial tax rates. As you can tell from the chart below, Ontario sits at the lower half of tax rates in Canada.
The impact of the 1.8% increase in Ontario income tax is not generally felt by the residents. Why? Residents in Ontario are experiencing an increase in average yearly income by 2.9% and, according to Statistics Canada, rank amongst the top five provinces with the highest median total family income.
Example of Employment Income
Percent of Tax Payable per Annual Income
Amount of Tax Payable in Dollars
If you want to know how Ontario income tax rates are depending on your annual income, the following will give you a rough idea. According to the Income Tax Calculator, in Ontario you will pay: 5.05% if your income is from 0 up to $39,723; 9.15% if your income is from $39,724 up to $79,448; 11.16% if your income ranges from $79,449 up to $509,000; and 13.16% if your income is over $509,000. These are comparatively lower tax rates than other provinces in the country. In general, in Ontario we are making more than we are paying than many others in the country.
Now it is time to figure out where your family is and how much you should pay for provincial taxes. The best way to do this is to hire a professional accountant. An accountant will ensure that you are not paying extra unnecessary taxes and you are taking advantage of the benefits of being an Ontario resident.