How much income tax do I have to pay?

The amount of income tax you pay depends on how much money you earned in the past year minus any deductions and credits.

Your income tax rate is based on a combination of federal and provincial tax rates.

Most 2018 tax returns should be filed by April 30, 2019. If you are filing for a previous year, see the 2017 to 1985 tax rates.

Federal tax rates for the 2018 tax year

  • 15% on taxable income of C$46,605  or less
  • 20.5% on taxable income between C$46,605 and C$93,208
  • 26% on taxable income between C$93,208 and C$144,489 
  • 29% on taxable income between C$144,489 and $205,842 
  • 33% on taxable income over $205,842 

Ontario (provincial) tax rates for the 2017 tax year

  • 5.05% on taxable income of C$42,960  or less
  • 9.15% on taxable income between $42,963 and $85,920 
  • 11.16% on taxable income between $85,920 and $149,997 
  • 12.16% on taxable income between $149,997  and $219,997 
  • 13.16% on taxable income over $220,000

Find a list of federal and provincial tax rates for previous years.

Taxable income includes employment income, rental income and money you receive through some government programs.

Tax credits and deductions reduce the amount of tax you must pay. If you paid too much tax, you will get a refund. If you did not pay enough, you must pay the difference to the government. Find out more in What happens after I file my tax return?

Canadian residency for tax purposes is not the same as residency for immigration purposes. Find out more in Do I have to file a tax return?

For More Information

  • Newcomers to Canada - This guide is for first time tax filers in Canada. It will help you determine if you are a resident for tax purposes, which is not the same as residency for immigration purposes. From the CRA.
  • Canada Revenue Agency (CRA) - The federal agency responsible for administering tax, benefits and related programs across the country. Their website provides detailed information about tax-related issues.
  • Frequently Asked Questions about Individual Taxation - Information and answers about tax rates and how to file your return. From the CRA.
  • General Income Tax and Benefit Package - A collection of forms and information sheets which you need to file your income tax return. From the CRA.
  • Ontario Tax Credits and Benefits - Learn about the different tax credits and benefits you can get to help you with living costs when you file your income tax return. From the Ministry of Finance.
Last updated: December 11, 2018 4000128