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