2020 Personal Income Tax Brackets and Rates for Ontario Residents

Navigating through the tax season can be a complex endeavor, especially when it comes to understanding the varied tax rates that apply to different income brackets. For those residing in Ontario, Canada, the year 2020 brought specific tax rates that were essential to be aware of for personal income tax purposes. Below is a simplified guide to these rates. 

For the Federal tax rates in 2020, the income brackets were categorized as follows: 

• For income below C$48,535, the tax rate was set at 15%. 
• Earnings between C$48,536 and C$97,069 were taxed at 20.5%. 
• Income ranging from C$98,070 to C$150,473 fell into a 26% tax bracket. 
• Those earning between C$150,474 and C$214,368 were taxed at 29%. 
• For income over C$214,369, the applicable tax rate was 33%. 

In addition to the federal tax rates, Ontario residents also had to consider provincial tax rates: 

• Incomes less than C$44,740 were subject to a 5.05% provincial tax. 
• Earnings from C$44,741 to C$89,482 had a 9.15% tax rate. 
• For the bracket of C$89,483 to C$150,000, the rate increased to 11.16%. 
• Income between C$150,001 and C$220,000 was taxed at 12.16%. 
• And for those earning over C$220,001, the tax rate was 13.16%.