Marginal Tax Rate Calculator
Enter your income and province to see your combined federal + provincial marginal tax rate, the rate on your next dollar earned, plus your effective rate and a full bracket-by-bracket breakdown.
Marginal tax rate on your next dollar
29.6%
20.5% federal + 9.2% Ontario. This is the mortgage strategy number, it's what a deductible dollar of interest is actually worth to you.
Effective (average) rate
23.7%
After-tax income
$76,322
Bracket by bracket
| Federal | |
| $0 – $58,523 @ 14% | $8,193.22 |
| $58,523 – $117,046 @ 20.5% | $8,502.79 |
| Ontario | |
| $0 – $52,886 @ 5.05% | $2,670.74 |
| $52,886 – $105,775 @ 9.15% | $4,310.93 |
| Total tax | $23,677.68 |
Why your marginal rate matters for mortgage strategy
Deductible interest (rental HELOC, investment loans) saves you tax at your marginal rate, not your average rate. The higher that number, the more a strategy like Rental Cash Damming is worth pursuing.
Why your marginal rate matters for mortgage strategy
Strategies like Rental Cash Damming and readvanceable mortgages work by converting non-deductible interest into deductible interest. What that deduction is actually worth to you depends on your marginal rate, not your average rate, since it's the tax on the next dollar you'd otherwise pay that gets offset. The higher your marginal rate, the more these strategies are worth exploring.
Try the Rental Cash Damming Calculator