Is Ontario the most expensive province to live in?

Ontario has the second-highest cost of living after British Columbia, driven primarily by housing costs in the Greater Toronto Area. Toronto's average home price exceeds $1.1M. However, northern Ontario and smaller cities like Ottawa, Kingston, Hamilton, and London have significantly lower costs. Ontario has no provincial sales tax on top of HST (HST is the combined federal/provincial tax at 13%).

🍁 Ontario Finance Guide · 2026

Ontario Personal Finance Guide 2026

Q: What are Ontario income tax rates in 2026?

Ontario provincial income tax rates for 2025 income (filed 2026): 5.05% on the first $51,446; 9.15% on $51,446–$102,894; 11.16% on $102,894–$150,000; 12.16% on $150,000–$220,000; 13.16% on income over $220,000. Combined with federal rates, top Ontario marginal rate is approximately 53.53%.

Q: What is the Ontario Trillium Benefit?

The Ontario Trillium Benefit (OTB) is a refundable tax credit paid monthly to lower-income Ontarians. It combines three credits: the Ontario Energy and Property Tax Credit, the Northern Ontario Energy Credit, and the Ontario Sales Tax Credit. You apply by filing your provincial tax return. The maximum annual OTB for 2025 is approximately $1,294 for a single person (varies by income and housing situation).

Ontario is Canada's most populous province and home to the country's financial hub. This guide covers Ontario-specific banking, tax rates, housing, and money opportunities for ON residents in 2026.

53.5%

Top ON marginal tax rate

$1.1M+

Average Toronto home price

13%

Ontario HST rate

Best Banks for Ontario Residents

Top picks for Ontarians

KOHO — $0/month, $100 signup bonus (code 45ET55JSYA), 1% cashback, no credit check. Best no-fee option for most Ontarians.
EQ Bank — 3.75% savings interest, $0 fees. Best for emergency fund / TFSA savings. HQ'd in Toronto.
TD Bank — Best Ontario big bank for mortgages, especially in GTA. Most ATMs in Ontario. Up to $400 bonus.
Scotiabank — HQ'd in Toronto. Good Scene+ rewards for Ontarians who shop at Sobeys/Loblaws-adjacent stores. Up to $350 bonus.
RBC / CIBC — Both HQ'd in Toronto. CIBC Simplii ($0 fee) is strong for no-cost banking with CIBC ATM access.

Ontario Tax Rates 2026 (2025 Income)

Ontario Tax Bracket	Income Range	Provincial Rate	Combined Federal + ON
Bracket 1	$0 – $51,446	5.05%	~20.05%
Bracket 2	$51,446 – $102,894	9.15%	~29.65%
Bracket 3	$102,894 – $150,000	11.16%	~37.16%
Bracket 4	$150,000 – $220,000	12.16%	~43.41%
Bracket 5	Over $220,000	13.16%	~53.53%

Ontario's 13% HST applies to most goods and services. Basic groceries, children's clothing, and prescription drugs are exempt.

Ontario-Specific Tax Credits and Benefits

Credits and benefits unique to Ontario residents

Ontario Trillium Benefit (OTB) — Monthly refundable credit combining energy, property, and sales tax credits. Up to ~$1,294/year for lower-income single Ontarians. Claim on your tax return.
Ontario CARE Tax Credit — Up to 75% of eligible childcare expenses for families earning under $150,000. On top of the federal childcare deduction.
Ontario Seniors Care at Home Tax Credit — 25% of eligible home care expenses up to $6,000 ($1,500 max credit) for seniors 70+.
Ontario First Home Buyer's Rebate — Up to $4,000 rebate on Ontario Land Transfer Tax for first-time homebuyers.
Toronto First Home Rebate — Additional up to $4,475 on Toronto Municipal Land Transfer Tax for first-time buyers in Toronto.
Ontario Staycation Tax Credit — 20% credit on eligible Ontario accommodation (hotels, B&B) — check annually if extended.

Ontario Housing: Affordability Tips

Managing Ontario's high housing costs

FHSA (First Home Savings Account) — New in 2023. Contribute up to $8,000/year ($40,000 lifetime) tax-free. Withdraw tax-free for first home purchase. Critical for Ontario first-time buyers.
Maximise your TFSA first — $7,000 room for 2026. Better than a taxable account for down payment savings in Ontario's high-tax environment.
Consider Hamilton, Ottawa, Kingston — Home prices 30–50% less than Toronto while still within commuting or remote-work distance.
Stress test planning — Federally required. You must qualify at 5.25% OR your contract rate + 2%, whichever is higher. Plan your budget accordingly.
Ontario LTT rebate — First-time buyers save up to $4,000 on provincial LTT + up to $4,475 in Toronto. Factor into your closing costs.

Ontario Investing and Retirement

Optimise for Ontario's high marginal rates

RRSP deduction is powerful in Ontario — At the 43.41% combined rate ($102K–$150K income), each $100 RRSP contribution saves ~$4,341 in taxes today.
TFSA for high-income Ontarians — If your retirement tax rate will be lower, RRSP beats TFSA. If you expect similar rates (self-employed with irregular income), TFSA is better.
Best robo-advisors for Ontarians — Wealthsimple Invest (0.5% fee, based in Toronto) is the top choice. Questwealth is cheapest at 0.25%.
Ontario Pension Plan (ORPP) — N/A — Ontario never implemented ORPP after CPP enhancement in 2019. CPP enhancement covers most Ontarians.

Frequently Asked Questions

What are Ontario income tax rates in 2026?

Ontario provincial rates for 2025 income: 5.05% on first $51,446; 9.15% on $51,446–$102,894; 11.16% on $102,894–$150,000; 12.16% on $150,000–$220,000; 13.16% on $220,000+. Combined with federal rates, the top Ontario marginal rate is ~53.53%.

What is the Ontario Trillium Benefit?

The Ontario Trillium Benefit (OTB) combines three provincial tax credits: the Ontario Energy and Property Tax Credit, the Northern Ontario Energy Credit, and the Ontario Sales Tax Credit. It's paid monthly to eligible lower-income Ontarians. Maximum ~$1,294/year for a single person. Claim automatically when filing your Ontario tax return.

How much does it cost to buy a house in Ontario in 2026?

Toronto average home price: ~$1.1M–$1.2M (detached ~$1.4M, condo ~$680K). Ottawa: ~$650K average. Hamilton: ~$750K. London: ~$620K. Kitchener-Waterloo: ~$680K. Northern Ontario (Sudbury, Thunder Bay): ~$350K–$450K. For a Toronto purchase at $1M, you'd need ~$200K down payment (20%), plus $16,475 in land transfer taxes (provincial + municipal combined before first-time buyer rebate).

Related guides

Start your Ontario finances right — $100 free

KOHO code 45ET55JSYA · $100 bonus · 1% cashback · No credit check · $0 fees

Get KOHO — code 45ET55JSYA →

Disclaimer: General information only, not tax or financial advice. Consult a professional for your situation. Bremo earns referral commissions on KOHO signups. Information as of March 2026.