Ontario Income Tax 2026
Ontario is Canada’s most populous province and uses a five-bracket progressive income tax system combined with a unique surtax mechanism. Provincial income tax is filed alongside your federal return — no separate Ontario filing is required.
Ontario residents pay among the highest combined tax rates in Canada at the top end, but effective rates at moderate incomes are similar to most other provinces due to Ontario’s basic personal amount and targeted credits like the Ontario Trillium Benefit and LIFT credit.
Ontario Tax Brackets 2026
Provincial Tax Rates
| Each portion of taxable income | Rate |
|---|---|
| $0.00 to $53,891.00 | 5.05% |
| $53,891.01 to $107,785.00 | 9.15% |
| $107,785.01 to $150,000.00 | 11.16% |
| $150,000.01 to $220,000.00 | 12.16% |
| Over $220,000.01 | 13.16% |
Source: Canada Revenue Agency – Canadian income tax rates for individuals, 2026. Verified August 28, 2026.
These rates apply to taxable income — your net income after deductions such as RRSP contributions, union dues, and childcare expenses.
Ontario Surtax
Ontario is one of only two provinces (along with Prince Edward Island) that levies a surtax on top of its base provincial tax. The surtax is calculated on the provincial tax owing before personal amount credits are applied.
| Provincial Tax | Surtax Rate |
|---|---|
| Over $5,554 | 20% of excess |
| Over $7,108 | Additional 36% of excess |
Practical effect: The surtax increases the effective top Ontario rate by approximately 3.7 percentage points. A taxpayer with $150,000 income who owes $12,364 in Ontario base tax will pay additional surtax, pushing their effective provincial rate higher than the stated bracket percentage.
The surtax is automatically calculated by tax software and CRA — you do not need to calculate it separately when filing.
Combined Federal + Ontario Rates
Base Combined Rates (before surtax)
| Each portion of taxable income | Combined Federal + Ontario Rate |
|---|---|
| Up to $53,891.00 | 19.05% |
| $53,891.00 to $58,523.00 | 23.15% |
| $58,523.00 to $107,785.00 | 29.65% |
| $107,785.00 to $117,045.00 | 31.66% |
| $117,045.00 to $150,000.00 | 37.16% |
| $150,000.00 to $181,440.00 | 38.16% |
| $181,440.00 to $220,000.00 | 41.16% |
| $220,000.00 to $258,482.00 | 42.16% |
| Over $258,482.00 | 46.16% |
Combined marginal rate = federal rate + Ontario rate at each income level, computed directly from 2026 bracket data (not a separately-maintained table). Source: Canada Revenue Agency – Canadian income tax rates for individuals and the provincial revenue agency, verified August 28, 2026.
Including the Ontario surtax, the effective top combined rate on income over $246,752 rises to approximately 53.53%.
Tax by Income Level
| Taxable Income | Ontario Tax | Federal Tax | Total Tax | Effective Rate |
|---|---|---|---|---|
| $30,000 | $1,515 | $4,200 | $5,715 | 19.1% |
| $50,000 | $2,525 | $7,000 | $9,525 | 19.1% |
| $75,000 | $4,653 | $11,571 | $16,224 | 21.6% |
| $100,000 | $6,940 | $16,696 | $23,636 | 23.6% |
| $125,000 | $9,574 | $22,259 | $31,833 | 25.5% |
| $150,000 | $12,364 | $28,759 | $41,123 | 27.4% |
| $200,000 | $18,444 | $42,315 | $60,759 | 30.4% |
| $250,000 | $24,824 | $56,815 | $81,639 | 32.7% |
| $300,000 | $31,404 | $72,976 | $104,380 | 34.8% |
Figures are base bracket tax (before surtax), and assume only the basic personal amounts (federal $16,129; Ontario $12,399) are claimed. Additional deductions, credits, and the surtax will affect actual tax owing.
Ontario Tax Credits
Ontario residents claim the following non-refundable tax credits, which reduce provincial tax at a rate of 5.05% (the lowest bracket rate).
| Credit | 2026 Amount |
|---|---|
| Basic personal amount | $12,399 |
| Spouse/partner amount | Up to $10,531 |
| Age amount (65+) | Up to $5,794 |
| Disability amount | $9,586 |
| Caregiver amount | Up to $7,809 |
| Medical expenses | 25% of eligible expenses |
| Tuition amount | Transferable from student |
Ontario-Specific Credits
| Credit | Details |
|---|---|
| Ontario Trillium Benefit | Up to $1,788/year (refundable) |
| LIFT credit | Up to $875 (low-income workers) |
| Seniors’ Public Transit Tax Credit | 25% of eligible transit costs |
Ontario Trillium Benefit (OTB)
The OTB is a refundable credit that combines three sub-credits:
- Ontario Energy and Property Tax Credit (OEPTC): Helps offset property tax and energy costs for renters and homeowners. Maximum approximately $1,248 for adults under 65.
- Northern Ontario Energy Credit (NOEC): For residents of Northern Ontario — up to $180 for singles, $277 for families.
- Ontario Sales Tax Credit (OSTC): Offsets the sales tax burden for lower-income residents — up to $360 for adults, $360 per child.
The OTB is paid monthly (or as a lump sum if the annual amount is under $360) and is based on your prior-year tax return. Eligibility phases out as income rises above approximately $30,000–$35,000 depending on family type.
LIFT Credit (Low-Income Individuals and Families)
The LIFT credit reduces or eliminates Ontario personal income tax for working Ontarians who earn less than $30,000 individually (or $60,000 as a couple). The maximum credit is $875 and reduces Ontario tax to zero for many part-time and low-wage earners.
Key rules:
- Must have employment income (self-employment income also qualifies)
- Begins phasing out at $30,000 individual / $60,000 family net income
- Fully eliminated by approximately $38,500 individual / $68,500 family income
Ontario vs Other Provinces
At $100,000 Income
| Province | Provincial Tax | Total Tax |
|---|---|---|
| BC | $6,642 | $23,338 |
| Ontario | $6,940 | $23,636 |
| Alberta | $8,776 | $25,472 |
| Quebec | $16,283 | $30,224 |
| Nova Scotia | $13,716 | $30,412 |
At $150,000 Income
| Province | Total Tax | vs Ontario |
|---|---|---|
| Ontario | $41,123 | — |
| BC | $41,476 | +$353 |
| Alberta | $42,535 | +$1,412 |
| Quebec | $52,173 | +$11,050 |
| Nova Scotia | $51,224 | +$10,101 |
At $100,000, Ontario sits near the middle — slightly higher than BC, and significantly below Quebec and Nova Scotia. The surtax widens the gap at incomes above $150,000.
Ontario Tax Planning
RRSP at $100,000 Income
| RRSP Contribution | Tax Saved | Marginal Rate |
|---|---|---|
| $5,000 | $1,483 | 29.65% |
| $10,000 | $2,965 | 29.65% |
| $18,000 | $5,337 | 29.65% |
RRSP contributions are most valuable when made in higher-income years where the marginal rate is highest. Withdrawals in retirement are typically taxed at a lower effective rate.
Dividend vs Interest Income at $100,000
| $10,000 Income Type | Ontario Tax | Federal Tax | Total |
|---|---|---|---|
| Interest | $915 | $2,050 | $2,965 |
| Eligible dividends | $150 | $1,100 | $1,250 |
| Capital gains (50% inclusion) | $458 | $1,025 | $1,483 |
Eligible Canadian dividends are the most tax-efficient passive income for Ontario taxpayers at this income level, thanks to the federal and provincial dividend tax credit.
Self-Employment in Ontario
Self-employed Ontarians pay the same income tax brackets as employees but also face:
- CPP contributions at both employee and employer rates (11.9% combined on net self-employment income up to $68,500)
- No EI premium unless voluntary EI for the self-employed is purchased
- Business deductions reduce net income before tax is calculated
Many self-employed Ontarians benefit from incorporating once net income consistently exceeds $100,000. The small business corporate tax rate in Ontario is 12.2% (3.2% provincial + 9% federal), significantly below the top personal marginal rate of approximately 53.53% (with surtax).
Payroll Deductions at $80,000
| Deduction | Amount |
|---|---|
| Federal tax | $12,596 |
| Ontario tax | $5,110 |
| CPP contributions | $4,066 |
| EI premiums | $1,077 |
| Total deductions | $22,849 |
| Net pay (annual) | $57,151 |
| Monthly net | $4,763 |
Filing Ontario Income Tax
Ontario income tax is filed using the federal T1 General return. There is no separate provincial form for individuals. Tax software such as TurboTax, Wealthsimple Tax, or H&R Block Canada calculates both federal and Ontario tax in one process.
Key Ontario forms and schedules:
- ON428 – Ontario Tax (calculates provincial tax and credits)
- ON479 – Ontario Credits (Trillium Benefit, LIFT, Seniors’ Transit Credit)
- ON-BEN – Ontario Trillium Benefit and Ontario Senior Homeowners’ Property Tax Grant application
The filing deadline is April 30 for most residents (June 15 for self-employed individuals, though any balance owing is still due April 30). Filing on time avoids the late-filing penalty of 5% of the balance owing plus 1% per month for up to 12 months.
For more detail on deductions that reduce your taxable income before provincial rates apply, see our income tax deductions and credits guide.