Ontario Income Tax Brackets 2025
Ontario uses a progressive tax system with rates ranging from 5.05% to 13.16%. This is applied on top of federal tax.
- $0 – $51,446: 5.05% provincial rate
- $51,447 – $102,894: 9.15% provincial rate
- $102,895 – $150,000: 11.16% provincial rate
- $150,001 – $220,000: 12.16% provincial rate
- Over $220,000: 13.16% provincial rate
The Ontario basic personal amount is $11,865 for 2025. Ontario also has a surtax (an additional tax on top of basic tax) that applies when provincial tax exceeds certain thresholds.
Federal Income Tax Brackets 2025
- $0 – $57,375: 15%
- $57,376 – $114,750: 20.5%
- $114,751 – $158,519: 26%
- $158,520 – $220,000: 29%
- Over $220,000: 33%
Federal basic personal amount: $16,129. Your federal tax is reduced by this non-refundable credit.
Frequently Asked Questions
How much income tax do I pay in Ontario?
In Ontario, you pay both federal tax (15–33%) and provincial tax (5.05–13.16%), plus CPP and EI contributions. For example, on a $70,000 salary in Ontario: federal tax ~$9,800, Ontario tax ~$3,600, CPP ~$3,867, EI ~$1,049 — leaving about $51,700 in take-home pay.
What is the top marginal tax rate in Ontario for 2025?
The combined top marginal tax rate in Ontario for 2025 is 53.53% (33% federal + 13.16% Ontario + 7.37% Ontario surtax components). This applies to income over $220,000. For most Ontarians, the effective (average) tax rate is much lower.
Do newcomers to Ontario pay the same income tax?
Yes — all residents of Ontario, regardless of immigration status, are subject to the same income tax rates. In your first year, you only pay Canadian tax on income earned after your date of arrival (and from Canadian sources). You must file both federal and Ontario tax returns.
What is the Ontario surtax?
Ontario charges an additional surtax on top of basic provincial tax. If your basic Ontario tax exceeds $5,554, you pay 20% surtax on the excess. If it exceeds $7,108, you pay an additional 36% on the excess above that. This is why high earners face an effective Ontario rate above the stated 13.16%.
How do I reduce my Ontario income tax?
Key tax reduction strategies in Ontario: maximize RRSP contributions (reduces taxable income dollar-for-dollar), open a TFSA for tax-free growth, claim all eligible deductions (childcare expenses, moving expenses if job-related), and use the FHSA if you're a first-time home buyer.