The federal income tax rates for 2024 are as follows:   

- 15% on the first $55,867 of taxable income   

- 20.5% on taxable income over $55,867 up to $111,733  

- 26% on taxable income over $111,733 up to $173,205   

- 29% on taxable income over $173,205 up to $246,752   

- 33% on taxable income over $246,752

To calculate your combined tax liability, apply the federal tax rates to your taxable income to determine the federal tax owed. Then, apply your provincial tax rates to the same taxable income to determine the provincial tax owed. Add both amounts to get your total tax liability.

For 2024, the federal basic personal amount is $15,705.

  Dividends are taxed differently based on their type:   

- Eligible dividends: These are grossed-up by 38%, and a federal dividend tax credit of 15.02% and a provincial credit of 10% apply.  

- Non-eligible dividends: These are grossed-up by 15%, with a federal credit of 9.03% and a provincial credit of 3.12%.

Common deductions and credits include:   

- Registered Retirement Savings Plan (RRSP) contributions   

- Childcare expenses   

- Medical expenses   

- Charitable donations   

- Tuition and education amounts  

These can reduce your taxable income or the amount of tax payable.

Personal income tax returns for the 2024 tax year are due by April 30, 2025. If you or your spouse/common-law partner are self-employed, the deadline is June 15, 2025; however, any balance owing is still due by April 30, 2025

Income splitting involves redistributing income among family members in lower tax brackets to reduce the overall tax burden. Strategies include contributing to a spousal RRSP, paying reasonable salaries to family members for services rendered in a family business, or setting up a family trust. However, recent tax rules, such as the Tax on Split Income (TOSI), have tightened the criteria for income splitting. Consulting with a tax professional is essential to navigate these rules effectively.

Contributing to an RRSP allows you to defer taxes by reducing taxable income in the contribution year. The investments grow tax-deferred until withdrawal, typically during retirement when individuals may be in a lower tax bracket. This deferral can result in significant tax savings and compounding growth over time.

In Ontario, when you donate to registered charities, you're eligible for both federal and provincial tax credits. For the first $200 donated annually, you receive a combined credit of 20.05% (15% federal + 5.05% provincial). For amounts exceeding $200, the combined credit is 40.16% (29% federal + 11.16% provincial). If your taxable income surpasses the highest federal tax bracket, the federal credit increases to 33% for donations over $200, resulting in a total credit of 44.16%.

Rental income must be reported as part of taxable income. Expenses such as mortgage interest, property taxes, insurance, and maintenance can be deducted against this income. Upon selling a rental property, capital gains tax applies to the appreciation in value. It's important to distinguish between properties classified as personal residences and those held for investment, as tax treatments differ.

Stock options and other forms of executive compensation can have complex tax implications. Generally, the difference between the exercise price and the fair market value at the time of exercise is taxable as employment income. Certain conditions may allow for deferral or preferential tax treatments. It's crucial to plan for the tax impact of these compensation forms.