Ontario Tax Rates 2026: Your Definitive Guide
Everything you need to know about Ontario's provincial and federal income tax brackets, surtaxes, and key credits for the 2026 tax year.
2026 Ontario & Federal Income Tax Rates at a Glance
Let's cut to the chase, eh? You're here to find out how much tax you'll be paying. Below is a combined table of the projected Ontario and federal tax brackets for 2026. This is your marginal tax rate—the rate you pay on your *next* dollar of income.
Understanding Your Tax Rate
It's not as simple as a single percentage. Canada uses a progressive tax system, meaning you pay different rates on different portions of your income. The tables below show you exactly how that's broken down. We've combined the provincial and federal rates to give you the real picture.
| 2026 Taxable Income (Projected) | Combined ON + Federal Marginal Tax Rate |
|---|---|
| $0 to $52,886 | 20.05% |
| $52,887 to $57,375 | 24.15% |
| $57,376 to $105,775 | 31.15% |
| $105,776 to $114,750 | 35.39% |
| $114,751 to $150,000 | 42.16% |
| $150,001 to $177,882 | 44.97% |
| $177,883 to $220,000 | 48.29% |
| $220,001 to $253,414 | 51.97% |
| Over $253,414 | 53.53% |
*Note: These 2026 figures are projections based on 2025 tax brackets and standard inflation adjustments. Always consult the latest information from the CRA and the Ontario government as figures can be officially updated.
A Deeper Dive: How Ontario Taxes Work
So, how does it all add up? Your total tax payable is a combination of federal income tax and provincial income tax. Let's break down the two components, plus a little something extra called the Ontario surtax.
Ontario Provincial Tax Brackets (2026 Projected)
This is the portion of your income tax that goes to the provincial government to fund services like healthcare and education in Ontario. The tax rates in Ontario range from 5.05% to 13.16% of income.
- 5.05% on the first $52,886 of taxable income
- 9.15% on the portion over $52,886 up to $105,775
- 11.16% on the portion over $105,775 up to $150,000
- 12.16% on the portion over $150,000 up to $220,000
- 13.16% on the portion over $220,000
The Ontario Surtax: An Extra Layer
Just when you thought you had it figured out, there's the Ontario surtax. It's not a tax on your income, but rather an additional tax calculated on your Ontario provincial tax payable. For 2025, a 20% surtax applies to basic Ontario tax exceeding CA$5,710, and an additional 36% surtax applies to basic Ontario tax exceeding CA$7,307. Think of it as a tax on your tax, designed for higher income earners.
Federal Tax Brackets (2026 Projected)
Everyone in Canada pays federal income tax. These rates are applied to your taxable income *before* your provincial tax is calculated.
- 15% on the first $57,375 of taxable income
- 20.5% on the portion over $57,375 up to $114,750
- 26% on the portion over $114,750 up to $177,882
- 29% on the portion over $177,882 up to $253,414
- 33% on the portion over $253,414
Basic Personal Amount
A non-refundable tax credit that everyone can claim to reduce their tax payable. For 2025, the maximum federal amount is projected to be around $16,129.
Tax Credits & Deductions
Don't forget about credits! Things like the Ontario Trillium Benefit, medical expenses, and child care costs can lower your overall tax bill.
Other Taxes
Income tax is just one piece of the puzzle. Remember the HST (13% in Ontario) on goods and services, and local property taxes if you're a homeowner.
Ontario Income Tax Calculator.
Get a quick estimate of your 2025 income after tax, plus your potential refund or taxes owed.
Calculate →Frequently Asked Questions (FAQs)
What is a marginal tax rate?
Your marginal tax rate is the rate of tax you pay on your next dollar of earned income. It's not your average tax rate. As your income increases and crosses into a new bracket, only the income in that new, higher bracket is taxed at the higher rate.
How do I calculate my Ontario income tax?
You apply the provincial tax rates to the portions of your taxable income that fall within each bracket, then do the same for the federal rates. Finally, you calculate and add any applicable Ontario surtax. The easiest way is to use a certified tax software which does this automatically.
What is the Ontario Trillium Benefit (OTB)?
The OTB is a program that combines three different tax credits: the Ontario Energy and Property Tax Credit, the Northern Ontario Energy Credit, and the Ontario Sales Tax Credit. It's designed to help low- to moderate-income residents with these costs and is typically paid out in monthly installments.
Are capital gains taxed at the same rate as income?
No. In Canada, only 50% of your capital gains are considered taxable income. This means the gain is taxed at a much lower effective rate than your regular employment income.
What is the Low-income Individuals and Families Tax (LIFT) Credit?
The LIFT credit is a non-refundable tax credit for low-income workers in Ontario. It can reduce or even eliminate your Ontario personal income tax payable, but it cannot be refunded if you owe no tax.
When is the tax filing deadline for the 2025 tax year?
For most individuals, the deadline to file your 2025 income tax return in 2026 is April 30. If you or your spouse are self-employed, the deadline is June 15, 2026, though any taxes owed are still due by April 30.
Does Ontario have a provincial sales tax?
Yes. Ontario has a Harmonized Sales Tax (HST) of 13%, which combines the 5% federal Goods and Services Tax (GST) and the 8% provincial sales tax.
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