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Tax Rates in Ontario
The 2022 combined personal federal and Ontario tax rates had tax increases in the $155,625 through $220,000 tax brackets in comparison to the prior year due to federal tax increases, while more income qualified at the bottom two tax brackets. There was no increase at the top tax bracket. This is a positive for taxpayers with less than $155,625 in income and at the cost of those above that amount.
| 2022 Combined Federal and Ontario Tax Brackets and Tax Rates | |||||
| Other Income |
Capital Gains |
Canadian Dividends | |||
| From | To | Eligible | Non-Eligible | ||
| $ – | $ 46,226 | 20.05% | 10.03% | -6.86% | 9.24% |
| $ 46,226 | $ 50,197 | 24.15% | 12.08% | -1.20% | 13.95% |
| $ 50,197 | $ 81,411 | 29.65% | 14.83% | 6.39% | 20.28% |
| $ 81,411 | $ 92,454 | 31.48% | 15.74% | 8.92% | 22.38% |
| $ 92,454 | $ 95,906 | 33.89% | 16.95% | 12.24% | 25.16% |
| $ 95,906 | $ 100,392 | 37.91% | 18.96% | 17.79% | 29.78% |
| $ 100,392 | $ 150,000 | 43.41% | 21.71% | 25.38% | 36.10% |
| $ 150,000 | $ 155,625 | 44.97% | 22.49% | 27.53% | 37.90% |
| $ 155,625 | $ 220,000 | 48.35% | 24.18% | 32.19% | 41.79% |
| $ 220,000 | $ 221,708 | 49.91% | 24.96% | 34.34% | 43.58% |
| $ 221,708 | and up | 53.53% | 26.77% | 39.34% | 47.74% |
It is good practice to update your tax plan each year based on the revised tax rates.
| 2021 Combined Federal and Ontario Tax Brackets and Tax Rates | |||||
| Other Income |
Capital Gains |
Canadian Dividends | |||
| From | To | Eligible | Non-Eligible | ||
| $ – | $ 45,142 | 20.05% | 10.03% | -6.86% | 9.24% |
| $ 45,142 | $ 49,020 | 24.15% | 12.08% | -1.20% | 13.95% |
| $ 49,020 | $ 79,505 | 29.65% | 14.83% | 6.39% | 20.28% |
| $ 79,505 | $ 90,287 | 31.48% | 15.74% | 8.92% | 22.38% |
| $ 90,287 | $ 93,655 | 33.89% | 16.95% | 12.24% | 25.16% |
| $ 93,655 | $ 98,040 | 37.91% | 18.96% | 17.79% | 29.78% |
| $ 98,040 | $ 150,000 | 43.41% | 21.71% | 25.38% | 36.10% |
| $ 150,000 | $ 151,978 | 44.97% | 22.49% | 27.53% | 37.90% |
| $ 151,978 | $ 216,511 | 48.29% | 24.15% | 32.11% | 41.72% |
| $ 216,511 | $ 220,000 | 49.91% | 24.96% | 37.19% | 45.95% |
| $ 220,000 | and up | 53.53% | 26.77% | 39.34% | 47.74% |
Remember to pay the remittances on any 2021 salaries and bonuses that are paid by January 15, 2022.
Your tax planning and payroll calculations may require adjustments. Give us a call if you require a consultation.
The corporate tax rates remain consistent with where the rates left in 2021.
| 2022 Corporate Tax Rates | |||
| Federal | Ontario | Combined | |
| General | 15.00% | 11.50% | 26.50% |
| Small Business | 9.00% | 3.20% | 12.20% |
| 2021 Corporate Tax Rates | |||
| Federal | Ontario | Combined | |
| General | 15.00% | 11.50% | 26.50% |
| Small Business | 9.00% | 3.20% | 12.20% |
Information from the Government of Ontario and Canada websites.
This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. ©2022 Shajani LLP.
Shajani LLP is a CPA Calgary, Edmonton and Red Deer firm and provides Accountant, Bookkeeping, Tax Advice and Tax Planning services.
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