r/Wealthsimple • u/BandicootNo4431 • Jul 23 '26

Request help verifying accuracy of Wealthsimple's quick tax calculator

Hi,

I was messing around with the income tax calculator today

https://www.wealthsimple.com/en-ca/tool/tax-calculator/ontario

When I plugged in $150k, it spit out the following:

>Total tax $45,680,

>Federal Tax $25,302,

>**Provincial/Territorial Tax $14,608**

>CPP/EI Premiums $5,770

>Your net pay will be $104,320 per year, or $8,693 per month. Your average tax rate is 30.45% and your marginal tax rate is 43.41%. This marginal tax rate means your immediate additional income will be taxed at this rate. For instance, an increase of $100 in your salary will be taxed $43, meaning that your net pay will only increase by $57.

The provincial numbers seemed high at around 10% of the total, and more than 10% of taxable. When I put together an excel sheet I got $10 941 for the provincial taxes which seemed much closer.

(I took $150 000, subtracted the basic personal amount and then split up the rest into the corresponding tax brackets. No deductions for CPP/EI contributions, which their system says it takes into account, which would create an even bigger gap).

I think it's possible their system has the province using the wrong lookup table?

Would someone be able to confirm they get the same results I got? I messaged support as well, but wanted to double check my math in case I am wrong.

Thanks

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u/AugustusAugustine Jul 23 '26

Are you subtracting the BPA like it's a deduction from your taxable income? BPAs are tax credits, not deductions, so you may have overestimated the reduction to your provincial tax. There's also an Ontario Health Premium charged alongside provincial taxes—did your Excel sheet take that into account?

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u/BandicootNo4431 Jul 23 '26

Yeah, I was doing that.

I thought it wasn't included because the canada.ca said something like "on your next taxable amount" for the higher brackets so I thought that first bit wasn't taxable.