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.

Federal tax on taxable income manual calculation chart *
Use this column if your taxable income is $43,561 or lessUse this column if your taxable income is more than $43,561, but not more than $87,123Use this column if your taxable income is more than $87,123, but not more than $135,054Use 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.

 

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