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Ontario Tax Calculator

This program estimates how much Provinvial and Federal Tax has to be paid based on the inputs provided by the user. Note that up to five pension types can be added. It's a simple model as not all inputs for a tax calculation are not used. For estimating purposes only, not an accurate tax calculaiton tool due to missing inputs.

Scenario:

Monthly Pensions

  1. OAS
  2. CPP
  3. Pension 1
  4. Pension 2
  5. Pension 3

Annual Income Sources

  1. Eligible Dividends
  2. GIC Interest
  3. Bank Interest
  4. RRIF Withdrawls
  5. Other Income

Deductions

  1. RRSP Contribution
  2. Donations and Gifts
  3. Investment Interest Charges
  4. Non-Refundable Tax Credits

Reminders

  • Funds transferred from an RRSP to a RRIF occurs tax free. Only when funds are withdrawn from the RRIF are they taxed. There is an annual minimum that MUST be withdrawn from the RRIF depending on the age.
  • Funds withdrawn from a RRIF beyond the minimu have a withholding tax at source. However, the withheld amount is considered when filing annual taxes, it's not doube taxed.
  • To allocate the percent withdrawl on a RRIF to a lower age spouse, the spouse must be a minimum of 65 years of age.
  • RRIF pensions can be split up to 50% with a spouse, but the spouse must be at least 65 years of age.
  • Workplace pensions can be split up to 50% with a spouse. However, OAS and CPP cannot be split.
  • Interest gained from GICs or bank deposits are taxed at the highest level, next are capital gains and least taxed is dividends. However, inside a RRIF or RRSP this does not matter as there is no tax on assets held within these regulated plans. It's more of an issue for non-registered plans; e.g. investment accounts or bank deposits.
  • Approximately 40% of the donation amount in Ontario can be used for actual tax deduction, not the full amount of the donatio or gift. Donations can be carry forwarded for 5 years.
  • Non-refundable tax credits lower the tax payable by providing a dollar for dollar reduction of the income tax owed, NOT directly the taxable income. These credits typically represent 15% of eligibility, for example $1000 of tuition, medical expenses, will result in $150 dollars of actual credits. It's not the full $1000 amount that is the credit.
  • Cash inheritances in canada are tax free. However, taxes owing on deemed disposition of assets must be paid, for example inheriting a home or equities. Assets passed to a surviving spouse are genreally tax sheltered.

Compiled on 04-29-2026 09:20:39