Combined Federal and Ontario personal tax rates 2012

Source:  http://www.taxtips.ca/taxrates/on.htm

 

Ontario (ON)
Personal Income Tax Brackets and Rates Before Surtax
2012 Taxable Income   2012 Tax Rates 2011 Taxable Income   2011 Tax Rates
first $39,020 5.05% first $37,774 5.05%
over $39,020 up to $78,043 9.15% over $37,774 up to $75,550 9.15%
over $78,043 11.16% over $75,550 11.16%
Ontario (ON)
Combined Federal & Provincial Tax Rates Including Surtaxes
2012 Taxable Income   2012 Marginal Tax Rates 2011 Taxable Income   2011 Marginal Tax Rates
Other
Income
Capital
Gains
Canadian Dividends Other
Income
Capital
Gains
Canadian Dividends
Eligible
Dividends
Non-Eligible
Dividends
Eligible
Dividends
Non-Eligible
Dividends
first $39,020 20.05% 10.03% -1.89% 2.77% first $37,774 20.05% 10.03% -3.93% 2.77%
over $39,020 up to $42,707 24.15% 12.08% 3.77% 7.90% over $37,774 up to $41,544 24.15% 12.08% 1.85% 7.90%
over $42,707 up to $68,719 31.15% 15.58% 13.43% 16.65% over $41,544 up to $66,514 31.15% 15.58% 11.72% 16.65%
over $68,719 up to $78,043 32.98% 16.49% 14.19% 17.81% over $66,514 up to $75,550 32.98% 16.49% 12.50% 17.81%
over $78,043 up to $80,963 35.39% 17.70% 17.52% 20.82% over $75,550 up to $78,361 35.39% 17.70% 15.90% 20.82%
over $80,963 up to $85,414 39.41% 19.70% 19.88% 23.82% over $78,361 up to $83,088 39.41% 19.70% 18.32% 23.82%
over $85,414 up to $132,406 43.41% 21.70% 25.40% 28.82% over $83,088 up to $128,800 43.41% 21.70% 23.96% 28.82%
over $132,406 46.41% 23.20% 29.54% 32.57% over $128,800 46.41% 23.20% 28.19% 32.57%

Marginal tax rate for dividends is a % of actual dividends received (not grossed-up amount).
Marginal tax rate for capital gains is a % of total capital gains (not taxable capital gains).
Marginal tax rates above do not include the Ontario Health Premium, which increases the above rates by up to 1.2%

ON Surtaxes
2012

2011 

ON surtax rate (included in above rates) 20% 36% ON surtax rate (included in above rates) 20% 36%
Surtax is on ON tax greater than $ 4,213 $ 5,392 Surtax is on ON tax greater than $ 4,078 $ 5,219
Person with only basic personal amount – surtax starts at taxable income of $ 68,719 $ 80,963 Person with only basic personal amount – surtax starts at taxable income of $ 66,514 $ 78,361
Note that the 36% surtax is in addition to the 20% surtax, for a total surtax of 56%.
 
ON Basic Personal Amount
2012 Tax Rate 2011 Tax Rate
$9,405 5.05% $9,104 5.05%
Federal Basic Personal Amount
2012 Tax Rate 2011 Tax Rate
$10,822 15.00% $10,527 15.00%

 

The Ontario tax brackets and personal amount were increased for 2012 by an indexation factor of 1.033.  The Federal tax brackets and personal amount were increased for 2012 by an indexation factor of 1.028.

Please read the article Understanding the Tables of Personal Income Tax Rates.

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