Ontario Income Tax Rates 2026 | Tax Brackets and Credits
Updated
Ontario’s five provincial tax brackets range from 5.05% to 13.16%, but the real sting comes from the surtax — an additional 20% and 36% levy on higher provincial tax amounts that pushes the effective top combined rate to 53.53%, one of the highest in Canada. Add the Ontario Health Premium (up to $900/year) and you’re looking at a significant tax load, especially above $150,000. The upside: Ontario’s Trillium Benefit returns energy, property tax, and sales tax credits to lower-income residents, and RRSP contributions are particularly valuable here because they reduce both your federal and Ontario tax simultaneously.
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.
Combined Federal + Ontario Rates
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.
Ontario Surtax
How the Surtax Works
Threshold
Surtax Rate
Provincial tax > $5,554
20% on excess
Provincial tax > $7,108
Additional 36% on excess
Surtax Example
Item
Amount
Ontario tax calculated
$8,000
First surtax (20% of $8,000 - $5,554)
$489
Second surtax (36% of $8,000 - $7,108)
$321
Total surtax
$810
Total Ontario tax
$8,810
Ontario Tax Credits
Non-Refundable Credits
Credit
2026 Amount
Basic personal amount
~$12,399
Spouse/CLP amount
~$12,399
Age amount (65+)
~$5,839
Disability amount
~$9,586
Caregiver amount
Varies
Refundable Credits
Credit
Details
Ontario Trillium Benefit
Energy, property tax, sales tax
Ontario Child Benefit
Per child
Ontario Senior Homeowners’ Grant
Property tax help
Ontario Trillium Benefit
Three Components
Component
Maximum
Ontario Energy and Property Tax Credit
~$1,194
Northern Ontario Energy Credit
~$180
Ontario Sales Tax Credit
~$360/adult
Eligibility
Requirement
Details
Ontario resident
On December 31
Age 18+
Or spouse/parent
Filed tax return
Required
Tax Calculation Example
$100,000 Income in Ontario
Bracket
Income
Rate
Tax
Federal 1
$58,523
14%
$8,193
Federal 2
$41,477
20.5%
$8,503
Ontario 1
$53,891
5.05%
$2,722
Ontario 2
$46,109
9.15%
$4,219
Surtax
~$277
Total
~$23,914
Before credits.
Ontario Health Premium
Additional Provincial Levy
Taxable Income
Premium
Up to $20,000
$0
$20,001 - $25,000
6% of income over $20,000
$25,001 - $36,000
$300
$36,001 - $38,500
$300 + 6% over $36,000
$38,501 - $48,000
$450
$48,001 - $72,000
$450 + 25% over $48,000
$72,001 - $200,000
$600 + 25% over $72,000
Over $200,000
$900
Ontario-Specific Deductions
Available Deductions
Deduction
Details
RRSP contributions
Reduces taxable income
Union dues
If applicable
Professional dues
If required
Child care expenses
Federal and provincial
Comparison to Other Provinces
Top Marginal Rates
Province
Top Rate
Ontario
53.53%
Quebec
53.31%
BC
53.50%
Alberta
48.00%
Nova Scotia
54.00%
Tax Planning for Ontario Residents
Strategies
Strategy
Benefit
RRSP contributions
Reduce bracket
Income splitting
Use spousal RRSP
Dividend income
Lower effective rate
Capital gains
50% inclusion
Ontario Surtax Planning
If Near Threshold
Consider
RRSP contribution
Reduce Ontario tax
Timing income
Defer if possible
Tax credits
Maximize
The Bottom Line
Ontario’s top combined rate of 53.53% makes tax planning essential for higher earners. Maximize RRSP contributions to reduce your bracket, be mindful of the surtax thresholds, and claim the Trillium Benefit if eligible. The Ontario Health Premium is effectively a hidden tax that doesn’t show up in bracket tables but adds up to $900/year. For a comparison with other provinces, see our guide on the best provinces for taxes in Canada.
Ontario minimum tax (OMT)
Ontario has its own Ontario Minimum Tax (OMT), which mirrors the federal Alternative Minimum Tax (AMT) at the provincial level. It applies when certain tax preferences (large capital gains deductions, resource allowances, etc.) would otherwise reduce your Ontario tax below a minimum threshold. If the OMT exceeds your regular Ontario tax, you pay the higher amount. Most middle-income earners are not affected — the OMT primarily impacts individuals claiming large capital gains exemptions or tax shelter losses. The 2024 federal AMT changes (raising the AMT rate from 15% to 20.5%) may have downstream effects on the Ontario calculation; confirm with a tax professional if you are claiming the lifetime capital gains exemption.