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    This document outlines the calculation of provincial tax for Ontario. It lists the line items and sub-amounts needed to calculate basic provincial tax, provincial surtax, total provincial tax including surtax, Ontario health premium, provincial tax payable before reductions, provincial tax reductions, and total provincial tax payable for the year. The calculations involve multiplying taxable income by provincial tax rates, subtracting provincial constants, credits, and reductions to determine the final total provincial tax amount owed.

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    This document outlines the calculation of provincial tax for Ontario. It lists the line items and sub-amounts needed to calculate basic provincial tax, provincial surtax, total provincial tax including surtax, Ontario health premium, provincial tax payable before reductions, provincial tax reductions, and total provincial tax payable for the year. The calculations involve multiplying taxable income by provincial tax rates, subtracting provincial constants, credits, and reductions to determine the final total provincial tax amount owed.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    13 views1 page

    Provincial Tax

    Uploaded by

    api-279913299
    This document outlines the calculation of provincial tax for Ontario. It lists the line items and sub-amounts needed to calculate basic provincial tax, provincial surtax, total provincial tax including surtax, Ontario health premium, provincial tax payable before reductions, provincial tax reductions, and total provincial tax payable for the year. The calculations involve multiplying taxable income by provincial tax rates, subtracting provincial constants, credits, and reductions to determine the final total provincial tax amount owed.

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    © All Rights Reserved
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    of 1

    Calculate

    Provincial Tax
    Description

    Sub-amounts

    14 Basic provincial tax for Ontario:


    Multiply the amount on line 6 by the provincial tax rate based on Chart 2
    15 Minus the provincial constant based on the annual taxableincomeon line 6 (See
    Chart 2)
    16 Provincial tax on income for Ontario (line 14 minus line 15)
    17 Minus the provincial tax credits:
    the total of personal tax credit amounts repoted on the federal Form TD1ON
    the CPP contributions for the pay period multiplied by the number of pay periods
    in the year (annual maximum $2,479.95)
    the EI premiums for the pay period multiplied by the number of pay periods in
    the year (annual maximum $930.60)
    Total
    18 Multiply the total on line 17 by the lowest provincial tax rate for the year
    19 Total provincial tax credits
    20 Basic provincial tax (line 16 minus line 19)
    21 Provincial surtax
    Where line 20 is less than or equal to $4,418, the surtax is $0
    Where line 20 is greater than $4,418 and less than or equal to $5,654, the surtax
    is 20% of line 20 that is more than $4,289
    Where line 20 is greater than $5,654, the surtax is 20% of line 20 that is more
    than $4418 plus 36% of line 20 that is more than $5,654
    Provincial surtax
    22 Total provincial tax including surtax
    23 Ontario health premium
    Determine the premium based on the annual taxable income (line 6) and the
    explanation on A-7 of the T4032-ON
    24 Provincial tax payable before reduction (line 22 plus line 23)
    25 Minus the provincial tax reduction:
    The lesser of:
    (i) the total provincial tax payable on line 22; and
    (ii) twice the applicable personal amounts minus the amount on line (i) above.
    If the result is negative, substitute $0
    26 Total provincial tax payable for the year (line 24 minus line 25)

    Amounts
    x

    5.05%
    $1,441.99

    $0
    $1,441.99

    $587.82
    $854.17

    $0
    $854.17

    $300
    $1,154.17

    9,863.00
    1,240.18
    536.82

    11,640.00
    5%

    $0
    $0
    $0

    $854.17
    $456.00
    $854.17
    -$398.17

    $0.00
    $1,154.17

    $22.20

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