Ontario tax brackets for 2026, with combined federal rates

What are the Ontario tax brackets for 2026?

Ontario tax brackets for 2026 have five rates, from 5.05% to 13.16%. They apply to the same taxable income (line 26000) used for federal tax and are calculated on Form ON428, which is part of every Ontario resident's T1 return.

Ontario indexed its first two thresholds by 1.9% for 2026. The $150,000 and $220,000 thresholds are fixed dollar amounts and did not move, which means inflation slowly pulls more income into the two top bands each year.

Ontario tax brackets 2025 compared

For 2025 returns, the Ontario bands were 5.05% up to $52,886, 9.15% up to $105,775, then the same 11.16%, 12.16% and 13.16% rates at $150,000 and $220,000. The rates themselves have not changed between the two years; only the lower thresholds rose.

Ontario tax brackets 2027: not published yet

As of October 22, 2026, the 2027 Ontario thresholds, basic personal amount and surtax thresholds have not been published. The CRA is expected to release the 2027 indexed figures in November 2026. Until then, use the 2026 figures on this page for 2026 income. The $150,000 and $220,000 thresholds are not indexed, so they stay the same unless Ontario changes them.

Ontario tax brackets combined with federal rates

Your combined marginal rate is the federal rate plus the Ontario rate for the band your next dollar falls in. Because the federal and Ontario thresholds are different, the combined table has nine bands instead of five.

These combined figures understate the real rate for higher earners. Once the Ontario surtax applies in full, each dollar of Ontario rate is multiplied by 1.56, so the 13.16% top rate works out to about 20.53% and the combined top rate to about 53.53%. For how the federal bands are set, see our Canada tax brackets guide.

Does Ontario have a surtax?

Yes. The Ontario surtax is an extra tax calculated on your basic Ontario tax, not on your income. For 2026 it is 20% of basic Ontario tax above $5,818, plus another 36% of basic Ontario tax above $7,446, according to the CRA's T4127 payroll formulas.

Basic Ontario tax is the amount after Ontario non-refundable credits. For a person whose only Ontario credit is the basic personal amount, the surtax starts at roughly $94,900 of taxable income. More credits (CPP, EI, pension, tuition) push that starting point higher.

1. Work out Ontario tax on taxable income using the brackets above.
2. Subtract Ontario non-refundable credits to get basic Ontario tax.
3. Take 20% of the amount above $5,818.
4. Add 36% of the amount above $7,446.
5. The total is the surtax, which ON428 adds to your Ontario tax.

How much is the Ontario Health Premium?

The Ontario Health Premium ranges from $0 at taxable income of $20,000 or less to $900 above $200,600, according to the Government of Ontario. Most employees pay it through payroll as part of income tax withheld. If nothing is withheld, it is charged when you file your return.

Because the premium climbs in steps, it adds a short burst of extra marginal tax just above $20,000, $36,000, $48,000, $72,000 and $200,000, then flattens out. A person at $75,000 pays the $750 level. The premium is not reduced by the Ontario tax reduction, and self-employed people pay it on Form ON428 when they file.

Ontario personal amounts and the Ontario tax reduction

The Ontario basic personal amount for 2026 is $12,989, up from $12,747 in 2025, as shown on Form TD1ON 2026. It is credited at the lowest Ontario rate of 5.05%, so it reduces Ontario tax by $655.94. The federal amount is much larger at $16,452; see our basic personal amount page for every province side by side.

• Age amount: $6,342 if you are 65 or older on December 31, 2026 and net income is $47,210 or less, reduced to zero at $89,490 (TD1ON 2026).
• Pension income amount: up to $1,796 of eligible pension income (TD1ON 2026).
• Disability amount: $10,494 if you claim the disability tax credit with an approved Form T2201 (TD1ON 2026).
• Spouse or eligible dependant amount: $11,029 if your spouse's or dependant's net income is $1,103 or less, reduced to zero at $12,132 (TD1ON 2026).
• Ontario tax reduction: for 2026, the basic reduction amount is $300 in the T4127 formula. If your basic Ontario tax plus surtax is $300 or less, it is reduced to zero. The reduction shrinks as tax rises and runs out when that tax reaches $600, plus $554 more for each dependant under 19 or with a disability.

Worked example: Ontario tax at $75,000 and $150,000

These examples use 2026 rates and assume the only credit is the Ontario basic personal amount. Real returns will be lower because of CPP, EI and other credits.

At $75,000 the basic Ontario tax of $3,997.03 is under the $5,818 surtax threshold, so no surtax applies. At $150,000 the basic Ontario tax of $11,708.05 is above both thresholds: 20% of $5,890.05 is $1,178.01 and 36% of $4,262.05 is $1,534.34.

The surtax and health premium are the main reasons Ontario compares badly with Alberta at higher incomes. Our Alberta tax brackets page runs the same incomes through Alberta's rates, and the BC tax brackets page covers the west coast. For your own figures, try the income tax calculator.