Ontario

Tax Brackets 2021

This document is up to date as of August 1, 2021 and reflects the status of legislation, including proposed amendments at this date.

FEDERAL – 2021
$49,020 or less 15 %
$49,021 – $98,040 $7,353 + 20.5% on next $49,020
$98,041 – $151,978 $17,402 + 26% on next $53,938
$151,979 – $216,511 $31,426 + 29% on next $64,533
$216,512 and over $50,141 + 33% on excess
  • 15% rate used for AMT.
  • Indexation rate of 1 % for 2021.
ONTARIO – 2021
$45,142 or less 5.05%
$45,143 – $90,287  $2,280 + 9.15% on next $45,145
$90,288 – $150,0001  $6,410 + 11.16% on next $59,713
$150,001 – $220,0001  $13,074 + 12.16% on next $70,000
$220,001 and over  $21,586 + 13.16% on excess
  • AMT of 33.67% of federal AMT.
  • 20% surtax on tax over $4,874 and additional surtax of 36% on tax over $6,237.
  • Indexation rate of 0.9% for 2021.
TAX CREDIT FOR DIVIDENDS FROM CANADIAN CORPORATIONS – 20212
Eligible Dividends3 Ordinary Dividends4
Federal 15.02% 9.03%
Ontario 10.00% 2.9863%

1 The $150,000 and $220,000 brackets are not indexed annually.
2 Rates applicable to grossed-up dividends.
3 38% gross-up.
4 15% gross-up.
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