The federal income tax rates for 2024 are as follows:   

- 15% on the first $55,867 of taxable income   

- 20.5% on taxable income over $55,867 up to $111,733  

- 26% on taxable income over $111,733 up to $173,205   

- 29% on taxable income over $173,205 up to $246,752   

- 33% on taxable income over $246,752

Ontario's provincial income tax rates for 2024 are:   

- 5.05% on the first $51,446 of taxable income   

- 9.15% on taxable income over $51,446 up to $102,894  

- 11.16% on taxable income over $102,894 up to $150,000  

- 12.16% on taxable income over $150,000 up to $220,000   

- 13.16% on taxable income over $220,000

To calculate your combined tax liability, apply the federal tax rates to your taxable income to determine the federal tax owed. Then, apply the Ontario provincial tax rates to the same taxable income to determine the provincial tax owed. Add both amounts to get your total tax liability.

For 2024, the federal basic personal amount is $15,705, and the Ontario basic personal amount is $12,399. These amounts are non-refundable tax credits that reduce the amount of income tax you owe.

  Dividends are taxed differently based on their type:   

- Eligible dividends: These are grossed-up by 38%, and a federal dividend tax credit of 15.02% and a provincial credit of 10% apply.  

- Non-eligible dividends: These are grossed-up by 15%, with a federal credit of 9.03% and a provincial credit of 3.12%.

Common deductions and credits include:   

- Registered Retirement Savings Plan (RRSP) contributions   

- Childcare expenses   

- Medical expenses   

- Charitable donations   

- Tuition and education amounts  

These can reduce your taxable income or the amount of tax payable.

Personal income tax returns for the 2024 tax year are due by April 30, 2025. If you or your spouse/common-law partner are self-employed, the deadline is June 15, 2025; however, any balance owing is still due by April 30, 2025