Question

Geraldine made $140,143.11 in Employment income last year. She had investment income of $12,383.19 and dividend income of $4,230.12. How much income tax (include both federal and provincial) did she have to pay if she lives in Ontario?

Federal Rates:
15% on the first $43,953 of taxable income +
22% on the taxable income between $ 43,953 and $87,907 +
26% on the taxable income between $87,907 and 136,270 +
29% of taxable income over $ 136,270.
Provincial Rates:
5.05% on the first $40,120 of taxable income, +
9.15% on taxable income between $40,120 and $80,242, +
11.16% on taxable income between $80,242 and $ 150,000 +
12.16% on taxable income between $150,000 and $220,000 +
13.16% on taxable income over $220,000

What steps do i follow?

Answer 1

just look for the proper bracket for her income, and add up the taxes for all the brackets there and below, both federal and provincial.