Ontario · 2025
This isn't a tax return. It's a quick read on where you stand. Free, no signup, and your numbers never leave your browser.
T4 box 14 — your annual gross pay before deductions.
Two rates, and they're almost never the same. Your marginal rate is what you pay on your next dollar earned. Your average rate is your total tax divided by total income.
So which one matters? Depends. Got a raise coming? Side gig? Thinking about an RRSP top-up? That's when the marginal rate matters. The average rate shows your overall tax load.
Here's the short version. Corporate income gets taxed once inside the corporation. Then it gets taxed again when it lands in your pocket as dividends. The gross-up and tax credit system tries to even things out so the total tax is roughly the same as earning the money yourself.
Eligible dividends (usually from public companies) get a bigger credit than non-eligible ones (usually from small businesses). But "roughly the same" does a lot of heavy lifting there.
Ontario tacks on two charges most people don't know about. First, the surtax: an extra 20% + 36% layered on your provincial tax once it crosses certain thresholds. That's why the top rate hits 53.53%.
Second, the Ontario Health Premium. Up to $900/year, based on your taxable income. A lot of free calculators skip one or both. We didn't.
Salary or dividends? It's the question every owner-manager asks. And honestly, a calculator can only show you one scenario. The right mix depends on your corp's income, your personal spending, and your RRSP room.
If you're paying yourself more than $60,000 from a corporation, the mix is worth a real conversation with an accountant. Not a guess.
We built this using 2025 federal and Ontario rates from the CRA and the Ontario Ministry of Finance. It covers the most common income types, plus the Ontario surtax and Ontario Health Premium that a lot of calculators leave out. But a calculator can't see your full picture — credits, carryforwards, and your specific situation all affect the final number. For anything beyond a ballpark, talk to an accountant. Everything runs in your browser. We never see your data.
Rates current as of July 30, 2025. Built by Yogi & Associates, Toronto.