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Tax Flash Bulletin

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.

 

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