The tax calculation in Ontario is simple. All you have to do is take your total earnings, add the exempted amounts and then deduct the tax deductions and credits that you are eligible for. Once all these steps are followed, you can find out exactly how much tax you need to pay.

The tax rates for Ontario in 2024 are as follows

• Amounts earned up to $51,446 are taxed at 5.05%.
• Amounts above $51,446 up to $102,894 are taxed at 9.15%.
• Amounts $102,894 up to $150,000, the rate is 11.16%.
• Earnings $150,000 up to $220,000 the rates are 12.16%.
• Finally, earnings above $220,000 will be taxed at a rate of 13.16%.

A tax on split income (TOSI) applies to children born in 2003 or later, as well as to amounts received by adult individuals from an affiliate. In cases where TOSI applies, the disability tax credit, the dividend tax credit, and the nonresident tax credit may be used to reduce the tax payable for the year. Form T1206 (Tax on Split Income) can be used to obtain more information.