Tax · Ontario
Ontario income tax.
Estimate your 2026 Ontario and federal income tax, net income, effective rate and marginal rate.
An Ontario income tax calculator for the 2026 tax year. Enter your gross income and it returns federal tax, Ontario tax, your net income, and both your effective and marginal rate.
Ontario is not a simple rate swap. Its published brackets run 5.05% to 13.16%, but a two-tier surtax multiplies that by up to 1.56, and a separate Health Premium of up to $900 is charged on top. Both are modelled below.
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Your Ontario tax
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Ontario’s 2026 tax brackets
Ontario’s lowest rate, 5.05%, is the lowest first-bracket rate of any province in Canada, and its basic personal amount of $12,989 is one of the smallest. Those two facts pull in opposite directions, which is why Ontario looks cheap on the bracket table and lands mid-pack on the actual bill.
| Taxable income | Rate |
|---|---|
| $0 – $53,891 | 5.05% |
| $53,891 – $107,785 | 9.15% |
| $107,785 – $150,000 | 11.16% |
| $150,000 – $220,000 | 12.16% |
| Over $220,000 | 13.16% |
The published rate is not the rate you pay. Two Ontario-only charges sit on top of it, and both are modelled by the calculator above.
The Ontario surtax: a tax on your tax
Ontario is the only jurisdiction in Canada that charges a surtax — a percentage levied on the amount of provincial tax you owe, rather than on your income. CRA’s payroll formulas carry a surtax term for Ontario and for nowhere else. For 2026 it is 20% of Ontario tax above $5,818, plus a further 36% of Ontario tax above $7,446. Both tiers are measured against the same pre-surtax figure, so at the top they stack to 56% rather than compounding.
The practical effect is that Ontario’s headline top rate of 13.16% is fiction. Multiply it by 1.56 and the real top provincial rate is 20.53%, which is what pushes Ontario’s combined federal-provincial top marginal rate to 53.53%. This is also why an Ontario marginal rate can jump partway through a bracket: crossing a surtax threshold raises the rate on the next dollar without any bracket having changed.
No other province or territory works this way. In Alberta or British Columbia the bracket rate is the rate. In Ontario the bracket rate is an input to a second calculation.
The Ontario Health Premium
Ontario charges a separate Health Premium of up to $900 a year, and it is charged on taxable income rather than on tax. It is not a percentage: it climbs in steps, starting at zero below $20,000 of taxable income and reaching its $900 ceiling above $200,600.
Two details catch people out. First, the premium is not reduced by the Ontario tax reduction, so a low-income Ontarian whose provincial income tax has been reduced to zero can still owe the Health Premium. Second, it is withheld from your paycheque during the year like any other deduction, which is why an Ontario paycheque is a little lighter than the bracket math alone predicts.
| Taxable income | Rate |
|---|---|
| Up to $20,000 | $0 |
| $20,000 – $36,000 | 6% of income over $20,000, max $300 |
| $36,000 – $48,000 | $300 + 6% of income over $36,000, max $450 |
| $48,000 – $72,000 | $450 + 25% of income over $48,000, max $600 |
| $72,000 – $200,000 | $600 + 25% of income over $72,000, max $750 |
| Over $200,000 | $750 + 25% of income over $200,000, max $900 |
The Ontario tax reduction
Ontario also runs a low-income tax reduction that can wipe out provincial income tax entirely. The basic amount for 2026 is $300, and it works as a mirror: your Ontario tax is reduced by twice the basic amount less the tax itself, so tax below $300 is eliminated and the benefit tapers to nothing at $600 of Ontario tax. It applies to income tax and surtax but, as above, never to the Health Premium.
Federal tax is the same everywhere
Only the provincial half of the bill changes with your address. The 2026 federal brackets below apply identically in every province and territory, and the federal basic personal amount is $16,452, clawed back on a straight line to $14,829 between $181,440 and $258,482 of net income.
| Taxable income | Rate |
|---|---|
| $0 – $58,523 | 14% |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Over $258,482 | 33% |
Sources
Every rate, threshold and ceiling on this page is taken from the official publication linked below. Last verified 2 September 2026.
- CRA T4032ON — Ontario rates, basic personal amount, surtax and tax reduction
- Government of Ontario — Personal income tax and the Ontario Health Premium
- CRA — Federal income tax rates and brackets
- CRA T4127 — federal basic personal amount and its phase-out — $16,452 falling to $14,829 between $181,440 and $258,482
Frequently asked questions
What is the Ontario surtax and does it apply to me?
The Ontario surtax is 20% of your Ontario income tax above $5,818, plus a further 36% of your Ontario income tax above $7,446 for 2026. It is charged on tax, not on income.
The first tier starts at about $95,000 of taxable income and the second at about $112,000, so it applies to a large share of full-time professional salaries. It is the single biggest reason an Ontario tax estimate built from the bracket table alone comes out too low.
What is the top marginal tax rate in Ontario for 2026?
Ontario’s top combined federal and provincial marginal rate is 53.53% on income over $258,482. That is the 33% federal rate plus Ontario’s 13.16% top rate multiplied by 1.56 to account for both surtax tiers.
The nominal provincial top rate of 13.16% is not what anyone at that income actually pays; the surtax-adjusted figure of 20.53% is.
Do I have to pay the Ontario Health Premium?
Yes, if your taxable income is above $20,000 and you were resident in Ontario on 31 December. It ranges from $60 to $900 a year depending on income and is collected through the income tax system.
It is not optional, it is not tied to using health services, and it is not reduced by the Ontario tax reduction.
Is this the same as an Ontario paycheque calculator?
No. This page estimates your annual tax bill on total income, which is what you settle when you file. Withholding from an actual paycheque follows a different CRA formula and also takes CPP and EI.
For that, use the Ontario payroll calculator, which follows CRA’s T4127 formulas.
Disclaimer
Estimate only — not tax advice. Figures use 2026 federal and Ontario brackets and the basic personal amount, and exclude every other credit and deduction, including provincial low-income reductions and the credits for CPP and EI. Your filed return will differ. Confirm anything that matters with the CRA or a professional adviser.