Ontario income tax rates for 2026 run through five progressive brackets, starting at 5.05% on the first $53,891 of taxable income and topping out at 13.16% on income over $220,000. Those are the provincial rates on their own. A provincial surtax and a separate health premium sit on top, and federal tax applies to the same income, so the real bill is higher than the bracket table alone suggests.
2026 Ontario Tax Brackets
Ontario’s system is progressive, meaning only the income that falls inside each range is taxed at that range’s rate. Moving into a higher bracket doesn’t reprice the income beneath it.
- First $53,891: 5.05%
- $53,892 to $107,785: 9.15%
- $107,786 to $150,000: 11.16%
- $150,001 to $220,000: 12.16%
- Over $220,000: 13.16%
The first two thresholds move with inflation each year. The 2026 indexation factor is 1.9%, which lifted the bottom-bracket ceiling from $52,886 in 2025 to $53,891 in 2026.1Canada Revenue Agency. Income Tax Rates and Income Thresholds The $150,000 and $220,000 thresholds are fixed in statute and have not been indexed in recent years.
What You Actually Pay: Combined Federal and Ontario Rates
Ontario tax and federal tax are calculated on the same return. The Canada Revenue Agency administers Ontario’s personal income tax under a collection agreement, so a single T1 covers both, and the CRA forwards the provincial portion to Ontario’s Ministry of Finance.2Canada Revenue Agency. Tax Rates and Income Brackets for Individuals
Federal tax adds another 15% to 33% depending on the bracket. Stack Ontario on top and a high-income resident faces a combined top marginal rate of roughly 53.53%, one of the highest in Canada.
The Ontario Surtax
The surtax is a tax on your provincial tax. Once your basic Ontario income tax is calculated from the five brackets, the province applies two additional charges:
- 20% of your basic Ontario tax above $5,818
- An additional 36% of your basic Ontario tax above $7,446
If your basic Ontario tax comes to $8,000, the surtax works out to 20% × ($8,000 − $5,818) = $436.40, plus 36% × ($8,000 − $7,446) = $199.44, for about $636 in surtax. Because it layers percentages on top of the base tax, the surtax pushes middle and upper-middle earners’ effective marginal rates noticeably higher than the bracket table shows.
Ontario Health Premium
Ontario also charges a health premium to anyone with taxable income above $20,000. It scales from $0 up to a maximum of $900 for income over $200,600, rising in steps in between.3Government of Ontario. Health Premium Someone earning $48,000 pays substantially less than the ceiling.
The name is misleading. It isn’t an insurance payment, you can’t opt out, and it doesn’t buy you separate coverage. The CRA collects it through your tax return and it flows into provincial general revenue, appearing as part of your total Ontario tax on your Notice of Assessment.
Credits That Reduce Your Ontario Tax
Basic Personal Amount
For 2026, the first $12,989 of income is effectively free of Ontario tax. This is a non-refundable credit worth 5.05% of that amount, or about $656 off your provincial tax.4Canada Revenue Agency. T4032ON January General Information – Payroll Deductions Tables It can reduce your Ontario tax to zero but can’t create a refund on its own.
Ontario Tax Reduction
Low-income filers can eliminate their Ontario tax entirely through the Ontario Tax Reduction. For 2026, taxable income up to $18,930 attracts no provincial income tax. Above that, the $300 reduction claws back at 5.05% per additional dollar of income, running out around $24,870.5Government of Ontario. Ontario Tax Reduction
Ontario Trillium Benefit
The Ontario Trillium Benefit bundles three credits into a single CRA payment. Your 2026 entitlement is based on your 2025 return, so filing matters even if you owe nothing. The three pieces:
- Ontario Sales Tax Credit: up to $378 per adult and per qualifying child under 19.
- Ontario Energy and Property Tax Credit: up to $1,307 if you’re 18 to 64, or $1,488 if you’re 65 or older.
- Northern Ontario Energy Credit: up to $189 for singles or $290 for families, available only to residents of Northern Ontario.
Entitlements of $360 or less arrive as a single lump sum. Anything higher is paid in monthly installments beginning in July 2026.6Government of Ontario. Ontario Trillium Benefit All three credits are income-tested and phase out as earnings rise.
Who Pays Ontario Tax
Your province of residence on December 31 determines which province’s tax rates apply to your entire year. If you’re an Ontario resident on that date, you owe Ontario tax on your worldwide income for the year, even if you spent part of it living somewhere else.7Canada Revenue Agency. Your Province or Territory of Residence
The CRA looks first at significant residential ties: where your home is, and where your spouse or common-law partner and dependents live. Secondary ties include an Ontario driver’s licence, OHIP coverage, and Ontario bank accounts or credit cards.8Canada Revenue Agency. Determining Your Residency Status The December 31 rule applies across the board, so someone who moves mid-year doesn’t split provincial tax proportionally.
Filing Deadlines and Late Penalties
Most Ontario residents must file and pay any balance owing by April 30, 2026. If you or your spouse are self-employed, the filing deadline extends to June 15, 2026, but interest on unpaid amounts still starts May 1. The extension covers the paperwork only.9Canada Revenue Agency. Due Dates and Payment Dates – Personal Income Tax
File late with a balance owing and the CRA charges 5% of the balance plus 1% for each full month you’re late, capped at 12 months. Repeat late filers who were penalized in any of the three preceding tax years and received a formal demand to file face 10% of the balance plus 2% per month for up to 20 months.10Canada Revenue Agency. Interest and Penalties on Late Taxes – Personal Income Tax Daily compound interest also runs on the unpaid balance from May 1. If you can’t pay in full, filing on time still spares you the penalty.