Estimate your 2023-2024 tax refund or taxes owed, and check provincial tax rates in Ontario with Toolerz's free Ontario Income Tax Calculator.

Are you a resident of Ontario, Canada? Do you want to know about a free & accurate tax calculator before filing your income tax?

Then, we have the best tool for you, it renders you the total tax deductions, employee insurance, and pension plan.  

Why are Ontario Tax Calculators in demand?

These Tax Calculators make it easy to calculate the net income and the illustration below would stand as proof.

When you make an income of $75,000 then the net income after taxation will be $53,948.

After living in Ontario Canada, you will have to make a tax payment of $16,295.00 and the earned income will be taxed with two tax rates, average tax rate (15.68%) and marginal tax rate (20.5%).

The marginal tax rate is applied to your immediate additional income. The in-depth explanation is given in the below lines.

Remember:

The marginal tax rate/ average tax rate does vary and is dependent on your annual income earned.

You can understand the tax deduction by utilizing the services of the Ontario Tax Calculator to make you realize how simple it is to calculate your net income after taxation.

As you progress, the coming up lines define the main variables that get deducted from your annual income just to derive your net income after taxation.

Ontario Tax Calculator Formula:

You can view your income earned after taxation from the calculator but you must know what are the main variables that get deducted from your annual income.

Four important elements shall get deducted when you are residing in Ontario, Canada.

They are Federal income tax, Ontario provincial tax, Canada Pension Plan, and Employee Insurance plan

Therefore, the Formula will be:

Net income after taxation  = Total annual income - (Federal Income Tax + Ontario Provincial Tax + Canada Pension Plan + Employee Insurance).

From the cited example, for an annual income of $75,000 @Ontario, the total income tax on your annual income of $75000 will be 21.73%, the Canada Pension Plan shall be 5.01%, Employee Insurance will be 1.34%, and the after-tax income shall be 71.93%.

However, you can use the Ontario tax calculator to observe the complete breakdown of facts in detail, and for that, you do follow the online calculator integrated on com to benefit you.

How to Calculate Your Tax in Ontario:

Visit our website www.toolerz.com and search for "Ontario Tax Calculator" 

On this page, you can find a calculator dialog box, you will have to fill in the annual income, and in our illustration is $75,000.

Then, select the province/territory from the drop box and it is Ontario.

Click the calculate button made available to make income tax calculations.

The web page shall display the list of parameters and calculations that are involved and also deliver a pie diagram to understand better the percentage of the amount deducted from your total annual income earned.

Calculations in Detail for Net Income after Taxation:

The tabulation shows four parameters derived by employing the average rate/marginal rate on the annual income.

They are federal income tax ($11,756.38) + Ontario Provincial tax ( $4,539), CPP is $3754, and Employee Insurance is $1,002.

Therefore, the total income tax = Federal Income Tax + Ontario Provincial Tax = $16,295

After tax income = Annual income - (Total income tax + Canada Pension Plan + Employee Insurance)

After tax, Income = $75,000 - ( $16,295 + $3754 + $ 1,002) = $ 53,948.