# Ontario tax brackets for 2026, with combined federal rates

Source: https://canadataxdesk.com/tax-rates/ontario-tax-brackets
Publisher: Canada Tax Desk (canadataxdesk.com), independent editorial site
Topic: Tax Rates and Brackets
Last updated: 2026-10-22

> Ontario's 2026 income tax brackets (CRA) are 5.05% on the first $53,891 of taxable income, 9.15% up to $107,785, 11.16% up to $150,000, 12.16% up to $220,000 and 13.16% above $220,000. Combined with federal rates, the marginal rate runs from 19.05% to 46.16%, and Ontario's surtax and health premium of up to $900 lift the combined top rate to about 53.53%.

## Key facts

- Lowest Ontario rate, 2026: 5.05% on the first $53,891
- Top Ontario rate, 2026: 13.16% above $220,000
- Ontario surtax thresholds, 2026: 20% over $5,818 and 36% over $7,446 of Ontario tax
- Ontario basic personal amount, 2026: $12,989
- Top combined marginal rate: About 53.53%

## 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.

| Taxable income | Ontario rate |
| --- | --- |
| $0 to $53,891 | 5.05% |
| $53,891.01 to $107,785 | 9.15% |
| $107,785.01 to $150,000 | 11.16% |
| $150,000.01 to $220,000 | 12.16% |
| Over $220,000 | 13.16% |

Ontario tax brackets 2026 (CRA)

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.

| Taxable income | Federal | Ontario | Combined |
| --- | --- | --- | --- |
| $0 to $53,891 | 14% | 5.05% | 19.05% |
| $53,891 to $58,523 | 14% | 9.15% | 23.15% |
| $58,523 to $107,785 | 20.5% | 9.15% | 29.65% |
| $107,785 to $117,045 | 20.5% | 11.16% | 31.66% |
| $117,045 to $150,000 | 26% | 11.16% | 37.16% |
| $150,000 to $181,440 | 26% | 12.16% | 38.16% |
| $181,440 to $220,000 | 29% | 12.16% | 41.16% |
| $220,000 to $258,482 | 29% | 13.16% | 42.16% |
| Over $258,482 | 33% | 13.16% | 46.16% |

Combined federal and Ontario marginal rates, 2026, before surtax and health premium

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](https://canadataxdesk.com/tax-rates).

## 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.

> **Why the top rate is 53.53%:** Above the second threshold, surtax adds 56% (20% plus 36%) of each extra dollar of Ontario tax. At the 13.16% bracket that is 13.16% x 1.56 = 20.53%, and with the 33% federal rate the combined top marginal rate is about 53.53%.

## 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.

| Taxable income | Premium |
| --- | --- |
| $20,000 or less | $0 |
| $20,000 to $36,000 | 6% of income over $20,000, maximum $300 |
| $36,000 to $48,000 | $300 plus 6% of income over $36,000, maximum $450 |
| $48,000 to $72,000 | $450 plus 25% of income over $48,000, maximum $600 |
| $72,000 to $200,000 | $600 plus 25% of income over $72,000, maximum $750 |
| Over $200,000 | $750 plus 25% of income over $200,000, maximum $900 |

Ontario Health Premium by taxable income (Government of Ontario)

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](https://canadataxdesk.com/tax-rates/basic-personal-amount) 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.

| Step | $75,000 | $150,000 |
| --- | --- | --- |
| Ontario tax on taxable income | $4,652.97 | $12,363.99 |
| Minus basic personal amount credit | $655.94 | $655.94 |
| Basic Ontario tax | $3,997.03 | $11,708.05 |
| Ontario surtax | $0 | $2,712.35 |
| Ontario Health Premium | $750 | $750 |
| Total Ontario amount | $4,747.03 | $15,170.40 |

Ontario provincial tax, 2026, basic personal amount only

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](https://canadataxdesk.com/tax-rates/alberta-tax-brackets) runs the same incomes through Alberta's rates, and the [BC tax brackets page](https://canadataxdesk.com/tax-rates/bc-tax-brackets) covers the west coast. For your own figures, try the [income tax calculator](https://canadataxdesk.com/tax-rates/income-tax-calculator-canada).

## Common questions

### What is the Ontario tax rate on $100,000 of income?

At $100,000 of taxable income in 2026, the next dollar is taxed at 9.15% by Ontario and 20.5% federally, for a combined 29.65% before surtax. With only the basic personal amount, a small Ontario surtax of about $93 also applies at this income.

### What are the combined federal and Ontario tax brackets for 2026?

Combined, the 2026 federal and Ontario rates form nine bands, from 19.05% on the first $53,891 of taxable income to 46.16% above $258,482. Once the Ontario surtax applies in full, the real top rate is about 53.53%.

### When do I pay Ontario surtax?

You pay it when your basic Ontario tax, after credits, is more than $5,818 for 2026. It is calculated automatically on Form ON428 and included in payroll withholding.

### Is the Ontario Health Premium deducted from my pay?

In most cases yes, it is included in the income tax withheld from your pay or pension. If your payer withholds no tax, the premium is charged on your return instead.

### Are Ontario tax brackets indexed to inflation?

The first two thresholds are indexed, by 1.9% for 2026. The $150,000 and $220,000 thresholds are fixed and have stayed the same from 2025 to 2026.

### What is the Ontario basic personal amount for 2026?

It is $12,989, credited at 5.05%, which lowers Ontario tax by $655.94. The 2025 amount was $12,747.

## Sources

- [CRA, Canadian income tax rates for individuals, current and previous years](https://www.canada.ca/en/revenue-agency/services/tax/individuals/tax-rates-brackets/current-year.html)
- [CRA, Tax rates and income brackets for individuals, 2025](https://www.canada.ca/en/revenue-agency/services/tax/individuals/tax-rates-brackets/last-year.html)
- [CRA, T4127 Payroll Deductions Formulas, January 2026](https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4127-payroll-deductions-formulas/t4127-jan/t4127-jan-payroll-deductions-formulas-computer-programs.html)
- [CRA, TD1ON 2026 Ontario Personal Tax Credits Return](https://www.canada.ca/en/revenue-agency/services/forms-publications/td1-personal-tax-credits-returns/td1-forms-pay-received-on-january-1-later/td1on.html)
- [Government of Ontario, Health premium](https://www.ontario.ca/page/health-premium)