Ontario has five income tax brackets for 2026: 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. Add federal tax and the Ontario surtax, and the combined marginal rate runs from 19.05% to 53.53%. The full 2026 tables, with 2025 for comparison, are below.
2026 Federal and Ontario Tax Brackets and Tax Rates
The surtax increases the 13.16% tax rate to 20.53% (13.16% x 1.56).
What Changed for Ontario in 2026
Ontario indexed its lower thresholds by 1.9%, its own CPI factor and slightly below the 2% federal factor. The first two thresholds rose to $53,891 and $107,785, and the basic personal amount increased to $12,989 from $12,747 in 2025. The five rates did not change.
The $150,000 and $220,000 thresholds are not indexed at all. They have stayed at the same dollar amounts since they were introduced, so wage growth steadily pushes more Ontarians into the 12.16% and 13.16% rates. It is a quiet tax increase built into the structure.
On the federal side, the bottom rate is 14% for the full year (2025 was a blended 14.5%) and the federal thresholds rose 2%. For a middle income Ontarian, that combination means slightly less tax on the same real income than in 2025.
The Ontario Surtax: Why the Top Rate Is Really 20.53%
Most bracket tables stop at the five posted rates. Ontario also charges a surtax on its own provincial tax, not on your income: 20% of Ontario tax above $5,818, plus a further 36% of Ontario tax above $7,446 for 2026. At the top, that is a combined 56% surcharge, which turns the posted 13.16% into an effective 20.53% and the top combined rate into 53.53% on income above $258,482.
For someone claiming only the basic personal amount, the 20% surtax starts at about $94,907 of taxable income and the 36% tier at about $111,814. That is why the combined marginal rate jumps from 29.65% to 31.48% at $94,907, even though no bracket changes there. Extra credits, such as tuition, medical or donation credits, lower your Ontario tax and push the surtax start point higher.
Ontario Health Premium 2026
The Ontario Health Premium is a separate charge on top of income tax, collected through payroll and settled on your tax return. It is not part of the bracket rates above, and its thresholds have not changed since it was introduced in 2004, so inflation pulls more workers into it every year.
| Taxable income | Ontario Health Premium |
|---|---|
| Up to $20,000 | $0 |
| $20,000 to $25,000 | 6% of income over $20,000 (up to $300) |
| $25,000 to $36,000 | $300 |
| $36,000 to $38,500 | $300 plus 6% of income over $36,000 (up to $450) |
| $38,500 to $48,000 | $450 |
| $48,000 to $48,600 | $450 plus 25% of income over $48,000 (up to $600) |
| $48,600 to $72,000 | $600 |
| $72,000 to $72,600 | $600 plus 25% of income over $72,000 (up to $750) |
| $72,600 to $200,000 | $750 |
| $200,000 to $200,600 | $750 plus 25% of income over $200,000 (up to $900) |
| Over $200,600 | $900 |
Inside the narrow phase in bands, the premium adds 6 or 25 percentage points to your marginal rate. Everywhere else it is a flat amount and does not change the rate on your next dollar.
Ontario Income Tax on $50,000, $75,000 and $100,000
Full year 2026 figures for an employee claiming only the basic personal amount, from the PaycheckGuru calculator. Ontario tax includes the surtax and the Ontario Health Premium. Each salary links to its full breakdown.
| Salary | Federal tax | Ontario tax | CPP and EI | Net pay | Average tax rate | Marginal rate |
|---|---|---|---|---|---|---|
| $50,000 | $3,985 | $2,265 | $3,582 | $40,168 | 12.5% | 19.05% |
| $75,000 | $8,258 | $4,446 | $5,369 | $56,926 | 16.9% | 29.65% |
| $100,000 | $13,301 | $6,723 | $5,769 | $74,206 | 20.0% | 31.48% |
The average tax rate is federal and provincial income tax as a share of salary. The marginal rate is the combined rate on your next dollar, taken from the table above. Our guide to marginal vs average tax rates explains why the two are so far apart, and the payroll calculator shows the same numbers per paycheque.
2025 Federal and Ontario Tax Brackets and Tax Rates
The surtax increases the 13.16% tax rate to 20.53% (13.16% x 1.56).
Frequently Asked Questions
What are the Ontario tax brackets for 2026?
Ontario taxes 2026 income at 5.05% up to $53,891, 9.15% from $53,891 to $107,785, 11.16% from $107,785 to $150,000, 12.16% from $150,000 to $220,000 and 13.16% above $220,000. Federal tax is charged separately on top.
What is the marginal tax rate in Ontario?
The combined federal and Ontario marginal rate for 2026 runs from 19.05% on the first $53,891 of taxable income to 53.53% above $258,482. At $75,000 of taxable income it is 29.65%, and at $100,000 it is 31.48% because the Ontario surtax applies.
How does the Ontario surtax work?
The surtax is charged on Ontario tax, not on income: 20% of Ontario tax above $5,818 plus 36% of Ontario tax above $7,446 for 2026. For someone claiming only the basic personal amount, it starts at about $94,907 of taxable income and raises the top provincial rate from 13.16% to 20.53%.
Is the Ontario Health Premium included in the tax brackets?
No. The Ontario Health Premium is a separate charge of up to $900 a year that starts once taxable income passes $20,000. Its thresholds are not indexed to inflation.
What is the Ontario basic personal amount for 2026?
The Ontario basic personal amount is $12,989 for 2026, up from $12,747 in 2025. It is worth $655.94 in tax savings at the 5.05% credit rate.
How much tax do you pay on $75,000 in Ontario?
An employee earning $75,000 in Ontario in 2026 pays about $8,258 in federal tax and $4,446 in Ontario tax, including the health premium. After $5,369 of CPP and EI, net pay is about $56,926.
When will the 2027 Ontario tax brackets be released?
Ontario sets its indexation factor from Ontario inflation, and the CRA usually publishes the next year’s indexed federal and provincial amounts in November or December. This page will add the 2027 brackets as soon as they are confirmed.
Notes: The $150,000 and $220,000 bracket thresholds are not indexed for inflation; all other Ontario thresholds rose 1.9% for 2026. Ontario surtax for 2026 is 20% of provincial tax above $5,818 plus 36% above $7,446. Bracket rates do not include the Ontario Health Premium.
Sources: CRA Payroll Deductions Tables (Ontario, 2026) · KPMG Personal Tax Rates 2026
Last updated: October 3, 2026. Worked examples are calculated with the PaycheckGuru calculator using 2026 CRA rates. This page is general information, not tax advice.