Tax Flash Bulletin
Tax Planning
2022 Ontario Budget Highlights
INDIVIDUALS
Personal Tax Rates
The budget did not contain any changes to Ontario personal income tax rates or the surtax rates. The Ontario surtax is a tax
calculated on the base amount of Ontario tax. Ontario indexes its provincial tax brackets to inflation.
Ontario Income Tax Brackets and Tax Rates
| 2021 Taxable Income | 2022 Taxable Income | Tax Rate |
|---|---|---|
| $0 to $45,143 | $0 to $46,226 | 5.05% |
| $45,143 to $90,287 | $46,226 to $92,454 | 9.15% |
| $90,287 to $150,000 | $92,454 to $150,000 | 11.16% |
| $150,000 to $220,000 | $92,454 to $150,000 | 12.16% |
| Over $220,000 | Over $220,000 | 13.16% |
Ontario Surtaxes
| 2021 Ontario Tax | 2021 Surtax Rate on Tax | 2022 Ontario Tax | 2022 Surtax Rate on Tax |
|---|---|---|---|
| $0 to $4,873 | No surtax | $0 to $4,991 | No surtax |
| $4,873 to $6,238 | 20% in excess of $4,873 | $4,991 to $6,387 | 20% in excess of $4,991 |
| Over $6,238 |
36% in excess of $6,238 + 20% of tax in excess of $4,873 |
Over $6,387 | 36% in excess of $6,387 + 20% of tax in excess of $4,991 |
| Income Type | 2021 | 2022 |
|---|---|---|
| Salary, interest, pension, foreign | 53.53% | 53.53% |
| Eligible dividends | 39.34% | 39.34% |
| Non-eligible dividends | 47.74% | 47.74% |
| Capital gains | 26.77% | 26.77% |
Top rates apply to taxable income over $220,000 based on known federal and provincial rates as of April 28, 2022.