Ontario Income Tax 2026

Ontario has some of the highest combined income tax rates in Canada. Understanding how federal and provincial taxes stack together — plus Ontario's unique surtax — is essential for accurate financial planning in 2026. This guide breaks down every layer so you know exactly what to expect.

2026 Ontario Tax Brackets

Ontario Taxable Income	Provincial Rate	Marginal Tax on This Bracket
Up to $51,446	5.05%	Up to $2,598
$51,446 – $102,894	9.15%	Up to $4,707
$102,894 – $150,000	11.16%	Up to $5,255
$150,000 – $220,000	12.16%	Up to $8,512
Over $220,000	13.16%	No ceiling

2026 Federal Tax Brackets (Applied Nationwide)

Federal Taxable Income	Federal Rate
Up to $57,375	15%
$57,375 – $114,750	20.5%
$114,750 – $158,519	26%
$158,519 – $220,000	29%
Over $220,000	33%

Ontario Surtax — The Hidden Tax

Ontario is one of two provinces (the other being Prince Edward Island) that levies a surtax on top of provincial income tax. The surtax is calculated on your Ontario tax before the Ontario dividend tax credit.

Ontario Tax Payable	Surtax Rate	Description
Over $5,554	20%	First surtax threshold
Over $7,108	Additional 36%	Second surtax threshold (56% total on excess)

Example: If your Ontario basic tax is $8,000, you owe 20% on ($8,000 − $5,554) = $489.20, plus 36% on ($8,000 − $7,108) = $321.12, for a total surtax of $810.32.

Ontario Basic Personal Amount 2026

Every Ontario taxpayer is entitled to an 11,865 basic personal amount credit, meaning the first $11,865 of income is effectively free from provincial tax. The federal basic personal amount for 2026 is $16,129, depending on income level.

Combined Federal + Ontario Marginal Rates

Income Range	Federal	Ontario	Combined Marginal
Up to $51,446	15%	5.05%	20.05%
$51,446 – $57,375	15%	9.15%	24.15%
$57,375 – $102,894	20.5%	9.15%	29.65%
$102,894 – $114,750	20.5%	11.16%	31.66%
$114,750 – $150,000	26%	11.16%	37.16%
$150,000 – $158,519	26%	12.16%	38.16%
$158,519 – $220,000	29%	12.16%	41.16%
Over $220,000	33%	13.16%	46.16%

Ontario Tax Credits for 2026

• Basic Personal Amount: $11,865 — reduces provincial tax by $599
• Spouse/Common-Law Partner Amount: Up to $10,141
• Age Amount: $5,440 (reduced above $40,495 net income)
• ON Property Tax Credit: Up to $1,095 for renters and homeowners
• Northern Ontario Energy Credit: Up to $162 per adult
• Ontario Sales Tax Credit: Up to $345 per person
• Trillium Benefit: Combines three Ontario credits

Ontario vs Other Provinces: Who Pays More?

On $100,000 of employment income, an Ontario resident pays roughly $28,200 in combined federal and provincial tax — compared to about $25,400 in Alberta. The gap widens further at higher incomes, especially once the Ontario surtax kicks in above approximately $82,000 in income (where Ontario basic tax first exceeds $5,554).

RRSP Strategy for Ontario Residents

Because Ontario's top combined marginal rate reaches 53.53% (including surtax effect) for income above $220,000, RRSP contributions become extremely valuable for high earners. A $100 RRSP contribution at the top bracket saves $5,353 in immediate taxes — money that continues to grow tax-sheltered.

CPP and EI Premiums (2026)

In addition to income tax, Ontario employees pay CPP premiums of 5.95% on earnings between $3,500 and $71,300, plus a CPP2 contribution of 4% on income between $71,300 and $81,900. EI premiums are 1.66% of insurable earnings up to $65,700.

How Ontario Income Tax Is Calculated — Step by Step

1. Calculate net income (employment income minus RRSP contributions, union dues, etc.).
2. Subtract the Ontario basic personal amount of $11,865 to arrive at Ontario taxable income.
3. Apply Ontario tax brackets progressively.
4. Calculate the Ontario surtax on the resulting provincial tax.
5. Subtract any Ontario non-refundable tax credits.
6. Add federal tax (calculated separately with federal brackets and BPA of $16,129).
7. Sum all components for total tax payable.

Also see: Canada Income Tax Calculator 2026 | Ontario Tax Brackets 2026 | Ontario Surtax Deep Dive