Ontario is Canada’s most populous province with over 15 million residents. Whether you live in Toronto, Ottawa, or a smaller city, this guide covers the key financial realities of living in Ontario.
Ontario income tax rates 2026
Taxable Income
Provincial Rate
First $51,446
5.05%
$51,447 – $102,894
9.15%
$102,895 – $150,000
11.16%
$150,001 – $220,000
12.16%
Over $220,000
13.16%
Combined federal + provincial marginal rates
Income Range
Combined Rate
$0 – $51,446
20.05%
$51,447 – $55,867
24.15%
$55,868 – $102,894
29.65%
$102,895 – $111,733
31.48%
$111,734 – $150,000
33.89%
$150,001 – $154,906
37.91%
$154,907 – $220,000
46.41%
$220,001 – $221,708
49.97%
Over $221,708
53.53%
Ontario provincial benefits and credits
Benefit
Amount
Who Qualifies
Ontario Trillium Benefit (OTB)
Up to $1,013+ (combines 3 credits)
Low-to-moderate income residents
— Ontario Sales Tax Credit
Up to $345/adult
Income under ~$38,000 (single)
— Ontario Energy & Property Tax Credit
Up to $1,065 (seniors: $1,248)
Renters and homeowners
— Northern Ontario Energy Credit
Up to $172
Northern Ontario residents
Ontario Child Benefit
Up to $1,509/child/year
Families with income under ~$113,000
OHIP+
Free prescriptions
Children and youth under 25
Ontario Senior Homeowners’ Property Tax Grant
Up to $500
Seniors with property tax
Ontario Works
$733/month (single)
Those in financial need
ODSP
$1,308/month (single)
Persons with disabilities
How to claim
OTB: File your tax return and check the OTB box — paid monthly by the CRA
Ontario Child Benefit: Automatic with your CCB — file your tax return annually
OHIP+: Show your health card at the pharmacy — no application needed
Housing costs in Ontario
Average rent (2026)
City
1-Bedroom
2-Bedroom
Toronto
$2,200–$2,600
$2,800–$3,400
Ottawa
$1,700–$2,100
$2,100–$2,600
Hamilton
$1,500–$1,900
$1,900–$2,400
London
$1,400–$1,800
$1,800–$2,200
Kitchener-Waterloo
$1,500–$1,900
$1,900–$2,400
Kingston
$1,500–$1,800
$1,800–$2,200
Windsor
$1,200–$1,500
$1,500–$1,900
Sudbury
$1,100–$1,400
$1,400–$1,700
Thunder Bay
$1,000–$1,300
$1,300–$1,600
Average home prices (2026)
City
Average Price
Typical Down Payment (10%)
Toronto
$1,050,000+
$105,000
Ottawa
$650,000
$65,000
Hamilton
$750,000
$75,000
London
$550,000
$55,000
Kitchener-Waterloo
$650,000
$65,000
Kingston
$550,000
$55,000
Windsor
$450,000
$45,000
Sudbury
$400,000
$40,000
Thunder Bay
$325,000
$32,500
Ontario has a land transfer tax ranging from 0.5% to 2.5%. Toronto adds a municipal land transfer tax on top (0.5% to 2.5%), making home buying in Toronto significantly more expensive.
Car insurance in Ontario
Ontario has the highest car insurance rates in Canada. Insurance is private and regulated by FSRA.
Driver Profile
Average Annual Premium
Clean record, age 35-50
$1,500–$2,200
New driver, under 25
$4,000–$7,000+
One at-fault accident
$2,500–$3,500
Senior (65+)
$1,400–$2,000
How to save on Ontario car insurance
Compare quotes from 5+ insurers (rates vary by $500-1,500+)
Bundle home and auto (5-15% discount)
Use telematics programs (10-25% discount)
Complete a certified defensive driving course
Increase your deductible from $500 to $1,000
Employment and wages
Metric
Amount
Minimum wage
$16.55/hour (2025)
Average salary
~$62,000/year
Median household income
~$90,000/year
Key employment rules
Right
Ontario Standard
Vacation (first 5 years)
2 weeks + 4% vacation pay
Vacation (5+ years)
3 weeks + 6% vacation pay
Sick days
3 unpaid job-protected days/year
Overtime
1.5x after 44 hours/week
Termination notice
1 week per year of service (up to 8 weeks)
Severance pay
1 week per year if 5+ years and employer payroll $2.5M+
Ontario-specific costs to know
Expense
Ontario Cost
Electricity
$130-180/month (average home)
Natural gas
$100-160/month (winter average)
Child care
$800-1,200/month (subsidized, depending on age)
Car insurance
$1,500-2,200/year (clean record)
Land transfer tax
0.5% to 2.5% (+ Toronto municipal LTT)
Health insurance (OHIP)
Free (covered by taxes)
Prescription drugs (under 25)
Free (OHIP+)
Money-saving tips for Ontario residents
Claim the Ontario Trillium Benefit — many eligible residents don’t file for it
Check OHIP+ eligibility — free prescriptions for anyone under 25
Apply for the Ontario Electricity Support Program (OESP) — $35-75/month off your electricity bill for low-income households
Use GreenON or Enbridge rebates — for home insulation, heat pumps, and energy upgrades
Compare car insurance annually — Ontario has the most competitive private market
Budget for land transfer tax — first-time buyers get a rebate up to $4,000 provincially (+ $4,475 in Toronto)
Consider cities outside the GTA — Hamilton, London, and Kingston offer significantly lower housing costs while remaining accessible