Combined Federal & Provincial tax rates*
2023 Taxable Income Tax Rate
| $0 – $15,000 | 0% | $15,001 – $17,291 | 15.00% | $17,292 – $22,716⁶ | 25.10% | $22,717 – $49,231 | 20.05% | $49,232 – $53,359 | 24.15% | $53,360 – $86,696 | 29.65% | $86,697 – $98,463 | 31.48% | $98,464 – $102,139 | 33.89% | $102,140 – $106,717 | 37.91% | $106,718 – $150,000 | 43.41% | $150,001 – $165,430 | 44.97% | $165,431 – $220,000⁷ | 48.29% | $220,001 – $235,675⁷ | 49.85% | $235,676 and up | 53.53% |
* Approximates tax payable given basic federal and provincial personal credits
1.The tax rates include the provincial surtaxes and reflect budget proposals and news releases up to January 15, 2023. The rates do not include the Ontario Health Premium (see note 5 below). Where the tax is determined under the alternative minimum tax provisions (AMT), the above table is not applicable. AMT may be applicable where the tax otherwise payable is less than the tax determined by applying the relevant AMT rate to the individual’s taxable income adjusted for certain preference items. Effective for 2017 and subsequent taxation years, provincial surtax and the Ontario tax reduction are pro-rated if the individual is a multijurisdictional filer.
5. Individuals resident in Ontario on December 31, 2023 with taxable income in excess of $20,000 must pay the Ontario Health Premium. The premium ranges from $nil to $900 depending on the individual’s taxable income, with the top premium being payable by individuals with taxable income in excess of $200,599.
6. Individuals resident in Ontario on December 31, 2023 with taxable income up to $17,291 pay no provincial income tax as a result of a low-income tax reduction. The low-income tax reduction ($274 of Ontario tax) is clawed back for income in excess of $17,291 until the reduction is eliminated, resulting in an additional 5.05% of provincial tax on income between $17,292 and $22,716.
7. The federal basic personal amount comprises two elements: the base amount ($13,521 for 2023) and an additional amount ($1,479 for 2023). The additional amount is reduced for individuals with net income in excess of $165,430 and is fully eliminated for individuals with net income in excess of $235,675. Consequently, the additional amount is clawed back on net income in excess of $165,430 until the additional tax credit of $222 is eliminated; this results in additional federal income tax (e.g., 0.32% on ordinary income) on net income between $165,431 and $235,675.
