The Crazy Part of Ontario Tax Calculation
- Tax reductions will double your marginal provincial tax and credit rate;
- One child can bring you as low as zero, as much as $12,231.40 tax exempt income in 2008;
- The eligibility of tax reductions depends on your taxes, not your income;
- One dollar of provincial non-refundable tax credits like tuition credits from yourself or a child can worth
as low as 0, as high as 18.88 cents, even though it looks like they are 6.05 cents for everyone;
- If you have to pay minimum taxes, certain federal credits claim (like tuition fee transferred from child,
political contributions etc) will actually increase your provincial taxes.
- People with low income can still have a high marginal tax rate;
a lucky persons can have a 92.82% marginal tax rate;
- When one of the luckiest taxpayers (with moderate income) has earned extra $200.00 from overtime work, he/she is actaully losing money,
because the extra taxes plus credits / benefits losses are more than $200.