Ontario residents pay both federal income tax to the CRA and Ontario provincial income tax, with provincial surtaxes applying to higher earners. Contributing to an RRSP is one of the most effective strategies to lower your taxable income bracket.
Ontario Combined Marginal Tax Brackets
| Taxable Income Range | Combined Marginal Tax Rate | Refund per $1,000 Contributed |
|---|---|---|
| $0 – $51,446 | 20.05% | $200.50 |
| $51,447 – $57,375 | 24.15% | $241.50 |
| $57,376 – $92,454 | 31.48% | $314.80 |
| $92,455 – $100,000 | 43.41% | $434.10 |
| $100,001 – $150,000 | 43.41% | $434.10 |
| $150,001 – $220,000 | 48.29% | $482.90 |
| Over $220,000 | 53.53% | $535.30 |
Optimizing Your Ontario RRSP Refund
If your contribution pushes your taxable income across multiple tax brackets, your refund is calculated weighted across those marginal rates. Many Canadians reinvest their CRA refund directly into their Tax-Free Savings Account (TFSA) or use it to pay down mortgage principal.
🧮 Use the Free RRSP Tax Refund Calculator
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