Wrong tax rate - my taxable income is 260 Taxable income 43,507.38 yet my provincial tax is 2,219.09 which is 5.1%.
In ontario the tax bracket over 42,960. Why is turbo tax not taking me at the 9.15% rate? (also I have credits that reduce this later. but this is the ontario income tax before the credits.)
I need to know because if I end up owing 1783.80258 more for my provincial taxes. I can reduce this by putting into RRSP 547.38 giving me a return of 1236.42 and some money to rrsp.
But If I am not being taxed at 9.15% then i don't want to contribute to rrsp at this time
any help would be greatly appreciated thank you.
Tax on income in Ontario is 5.1% on the first $42,960 and then jumps to 9.15% on the amount over this threshold.
This doesnt answer my question. I am assuming you are saying that once you get over 42,960 everything is taxed at 9.15? As I mentioned above.. I don't think that it taxes the first amount at 5.1% then everything after at 9.15% allowing to have some income in one bracket and the rest of the income in another bracket. I never read that it works like this any where...