Frequently asked questions
Ontario’s most popular tax credits and deductions include:
Anytime you invest your money into something that increases in value, such as stocks, mutual funds, exchange-traded funds (ETFs), or real estate, that increase is considered a capital gain.
Your capital gains will only be realized and taxable when you cash in your investment. Only 50% of your realized capital gains are taxed at a marginal rate based on your province of residence.
In Ontario, your capital gains are taxed according to the combined marginal capital gains tax rates below:
| 2023 taxable income | ON marginal capital gains tax rate |
|---|---|
| first $49,231 | 10.03% |
| over $49,231 up to $53,359 | 12.08% |
| over $53,359 up to $86,698 | 14.83% |
| over $86,698 up to $98,463 | 15.74% |
| over $98,463 up to $102,135 | 16.95% |
| over $102,135 up to $106,717 | 18.95% |
| over $106,717 up to $150,000 | 21.70% |
| over $150,000 up to $165,430 | 22.48% |
| over $165,430 up to $220,000 | 24.14% |
| over $220,000 up to $235,675 | 24.92% |
| over $235,675 | 26.76% |
The tax rates in Ontario range from 5.05% to 13.16% of income and the combined federal and provincial tax rate is between 20.05% and 53.53%.
Ontario’s marginal tax rate increases as your income increases so you pay higher taxes on the level of income that falls into a higher tax bracket.
Ontario residents receive a tax credit called the Climate Action Incentive Payment (CAIP) when they file their income tax returns to help off-set the federal carbon tax (i.e. fuel charge) that’s added directly to the cost of gas.
The CAIP amount you receive is based on the size of your family.
The amount of tax your employer deducts from your paycheque varies based on where you fall inside the federal and Ontario tax brackets.
Federal income tax rates in 2023 range from 15% to 33%. Ontario income tax rates in 2023 range from 5.05% to 13.16%.
The amount of income tax that was deducted from your paycheque appears in Box 22 of your T4 slip.
The deadline to file your 2023 income tax return in 2024 is midnight on April 30. If you’re self-employed, your tax return is due on June 17, 2024, since June 15 falls on a Saturday.
It can take 2 to 3 weeks to receive a refund when you transmit your return via NETFILE. For mailed returns, refunds are mailed out in 4 to 6 weeks following receipt of the return by the CRA or the Revenu Quebec.
If you have to pay income taxes to the CRA, you can do so online through the CRA’s My Payment online portal. Pay by setting up a pre-authorized debit agreement using CRA My Account or through a third-party service provider with credit card, e-transfer, or PayPal.
If you’re a resident of Canada for any part of the year and are earning income, whether that’s employment, self-employment, investment or other income, you're subject to Canadian income tax. There are no exemptions for age or occupation.
Learn more about who’s required to file an income tax return
The CRA requires that you retain your records for a minimum of 6 years, by law.
You can ask to amend your tax return for up to the previous 10 years, so it’s a good idea to maintain your records for that long.
