Ontario Income Tax Calculator 2026 | Tax Brackets & Rates

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

Source: Canada Revenue Agency – Canadian income tax rates for individuals, 2026. Verified September 5, 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 now the only province that levies a surtax on top of its base provincial tax (Prince Edward Island had a similar surtax, but eliminated it starting with the 2024 tax year when it moved to a smoother multi-bracket system). The surtax is calculated on Ontario tax after the basic personal amount and other non-refundable personal credits have already reduced it (this is Line 53 on Form ON428, which flows into the surtax calculation at Lines 62-68) – it is not based on the raw bracket amount before any credits.

Practical effect: At the top of the bracket structure, the combined surtax adds 56% on top of provincial tax owing above $7,446, pushing the effective top Ontario rate from 13.16% to about 20.53% — which is why the true top combined federal + Ontario rate is 53.53%, not the 46.16% you’d get from simply adding 33% + 13.16%. A taxpayer with $150,000 income owes $11,708 in Ontario tax after the basic personal amount credit, then pays about $2,712 in additional surtax (20% on the $5,890 above $5,818, plus another 36% on the $4,262 above $7,446), pushing their total Ontario tax to about $14,420.

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)

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 September 5, 2026.

Including the Ontario surtax, the effective top combined rate on income over $258,482 rises to approximately 53.53%.

Tax by Income Level

Figures include the Ontario surtax (which only starts to apply once your Ontario tax after the basic personal amount credit exceeds $5,818 – not a factor below roughly $100,000 of taxable income) and apply the basic personal amounts (federal $16,452 x 14%; Ontario $12,989 x 5.05%) as non-refundable tax credits against gross bracket tax, matching CRA’s actual Form ON428 methodology. Additional deductions and credits 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).

Ontario-Specific Credits

Ontario Trillium Benefit (OTB)

The OTB is a refundable credit that combines three sub-credits: the Ontario Energy and Property Tax Credit (OEPTC, for renters and homeowners), the Northern Ontario Energy Credit (NOEC, for residents of Northern Ontario), and the Ontario Sales Tax Credit (OSTC, for lower-income residents). Amounts are indexed annually and vary by age, family type, and region — see the full Ontario Trillium Benefit guide for current maximum amounts and payment dates.

The OTB is paid monthly (or as a lump sum if the annual amount is low enough) and is based on your prior-year tax return.

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 $32,500 individual / $65,000 family adjusted net income
• Fully eliminated at $50,000 individual / $82,500 family income (reduced at 5% of income above the threshold)

Ontario vs Other Provinces

At $100,000 Income

At $150,000 Income

At $100,000, Ontario sits near the middle — slightly higher than BC, and significantly below Quebec and Nova Scotia. Once the surtax is included, the gap flips at higher incomes: by $150,000, Ontario is actually more expensive than both BC and Alberta, though still well below Quebec and Nova Scotia.

Ontario Tax Planning

RRSP at $100,000 Income

The base combined marginal rate at $100,000 (9.15% Ontario + 20.5% federal) is 29.65%, but at this income level Ontario’s tax after the basic personal amount credit already exceeds the $5,818 surtax threshold, so each additional dollar of income also triggers 20% surtax on the extra provincial tax – pushing the real marginal rate to about 31.48% for the first few thousand dollars. As a larger RRSP contribution pulls taxable income down further, it eventually drops below the ~$95,000 income level where Ontario’s post-credit tax clears the $5,818 surtax threshold entirely, so larger contributions show a progressively lower blended rate ($10,000 and $18,000 contributions span both the surtax and non-surtax zones). 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

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. Interest and dividend figures reflect the blended rate over this $10,000 span, since Ontario’s post-credit tax crosses back below the $5,818 surtax threshold partway through this range at $100,000 income; capital gains (only $5,000 taxable due to the 50% inclusion rate) stay within the surtax zone and use the point-marginal 31.48% rate.

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 $74,600)
• 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. Ontario cut its small business provincial rate from 3.2% to 2.2% effective July 1, 2026, lowering the combined federal + Ontario small business rate from 12.2% to 11.2% (9% federal + 2.2% provincial), significantly below the top personal marginal rate of approximately 53.53% (with surtax).

Ontario Health Premium

Beyond the bracket rates above, Ontario residents with taxable income over $20,000 pay the Ontario Health Premium — a separate levy calculated on your tax return (Form ON428), not a payroll deduction. It scales with income up to a maximum of $900/year:

The premium is included in your balance owing or refund when you file — it does not appear as a separate line on your pay stub the way CPP or EI does.

Ontario Minimum Tax (OMT)

Ontario has its own Ontario Minimum Tax, which mirrors the federal Alternative Minimum Tax (AMT) at the provincial level. It applies when large tax preferences — such as the lifetime capital gains exemption or resource allowances — 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 unaffected. If you’re claiming a large capital gains exemption or similar preference, confirm the current-year calculation with a tax professional, since the federal AMT rules it’s based on have changed in recent years.

Payroll Deductions at $80,000

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.