These Are The Ontario Tax Brackets For 2022 & Here's What You Need To Know
This is what you can expect to pay. 👀.
The Ontario legislature. Right: CRA headquarters in Ottawa
The first month of 2023 is coming to a close, which means Ontario's tax season is right around the corner.
So, if you're striving to make your forms as stress-free as possible this year, finding out what 2022 Ontario income tax brackets you fall into is an excellent place to start.
The questions and answers below will help you understand what you need to know before filing your taxes this year — It's way less headache-inducing when you break it all down.
What are the tax brackets for Ontario Canada?
It's easy to get lost in the sauce when skimming over the many factors that weigh into Canada's tax code. But, thankfully, finding out which bracket you fall under based on personal income and how much percentage you'll pay is relatively simple.
In fact, apart from Quebec, taxes for all provinces and territories are calculated the same way as federal tax. So, anyone with a basic understanding of how it all works won't have to start from scratch.
As for how much? The Canada Revenue Agency (CRA) breaks down Ontario's 2022 tax rates as follows:
- "5.05% on the portion of your taxable income that is $49,231 or less,
- 9.15% on the portion of your taxable income over $49,231 up to $98,463, plus
- 11.16% on the portion of your taxable income over $98,463 up to $150,000, plus
- 12.16% on the portion of your taxable income over $150,000 up to $220,000, plus
- 13.16% on the portion of your taxable income over $220,000."
How much are you taxed in Ontario in 2022?
To determine this, you must first determine where you fall within Canada's federal and provincial tax brackets, as the amount your employer deducts from your paycheque is based on these factors.
In 2022, federal income tax rates ranged from 15% to 33%, while Ontario's income tax rate stretched from 5.05% to 13.16%, as mentioned above.
The lowest tax bracket on a federal level in Canada was 15% in 2022 for taxable income under $50,197. However, that rate rose to 20.5% on taxable income between $50,197 and $100,392.
- 26% for people who make between $100,392 and $155,625,
- 29% for those who earn $155,625 to $221,708
- 33% for individuals who make more than $221,708.
You can also see the exact amount of income tax deducted from your paycheque in Box 22 of your T4 slip.
It's worth noting that certain personal income tax and benefit amounts are annually indexed to inflation. The Government of Canada reported a 6.3% increase in 2023, so the federal brackets will be as follows in 2023:
- Deduction of 20.5% for those who make $53,359 or more
- 26% for people who make $106,717 or more
- 29% for individuals whose yearly salaries are $165,430 or more
- And 33% for those who make $235,675 plus.
When can I start filing taxes for 2022 Ontario?
You can file your 2022 income tax and benefit return starting February 20, 2023. The deadline for most Canadians is April 30, 2023. Those who file before the deadline don't have to worry about any interruptions to refunds, benefits, or credit payments you're eligible for.
Even if you file your return on May 1, 2023, it will still be considered on time. However, if you owe money to the CRA, your payment will only be regarded as on time if it is received or processed by a Canadian financial institution first.
People who are self-employed have until June 15, 2023, to file their return. Although, if you owe money, your payment is due by April 30, 2023, and must be received by the CRA or processed by a Canadian financial institution by May 1, 2023.
Hopefully, this helped you better understand the taxes you will owe for 2022 a little better.
Good luck filing!
This article's cover image was used for illustrative purposes only.