Ontario’s 2026 tax brackets carry a structural quirk that matters more every year: the province indexed its lower thresholds by 1.9% (Ontario’s own CPI factor, slightly below the 2% federal rate), but the $150,000 and $220,000 thresholds are not indexed at all. The five rates are unchanged — 5.05%, 9.15%, 11.16%, 12.16%, and 13.16% — with the first two thresholds rising to $53,891 and $107,785 for 2026, and the basic personal amount increasing to $12,989 (from $12,747 in 2025).
The real complexity is the surtax, which most bracket tables ignore. Ontario charges 20% on provincial tax above $5,818, plus a further 36% above $7,446 in 2026 — a combined 56% surtax at the top. That’s why Ontario’s true top provincial rate isn’t the posted 13.16% but an effective 20.53%, and why the top combined federal-provincial marginal rate reaches 53.53% on income above $258,482. Higher earners hit effective rates well above the posted brackets long before the top: the surtax typically starts biting around the low-$90,000s of taxable income.
Two more Ontario-only features shape your real bill. The Ontario Health Premium adds up to $900 a year once taxable income passes $20,000 — a threshold that has never been indexed, so inflation pulls more workers into it annually. And because the $150,000/$220,000 brackets have been frozen since their introduction, wage growth steadily pushes more Ontarians into the 12.16% and 13.16% rates — a quiet, compounding tax increase baked into the structure.
What improved for 2026 versus 2025: the federal bottom rate is 14% for the full year (2025 was a blended 14.5%), federal thresholds rose 2%, and Ontario’s BPA and lower thresholds rose 1.9%. For a middle-income Ontarian, that combination means slightly lower tax on the same real income. Get your exact numbers — surtax and health premium included — with our Ontario Tax Calculator.
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).
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).
Note: The $150,000 and $220,000 bracket thresholds are not indexed for inflation; all other thresholds rose 1.9% for 2026.
Note: Ontario surtax for 2026: 20% of provincial tax above $5,818 plus 36% above $7,446, raising the effective top provincial rate from 13.16% to 20.53%.
Note: Rates shown do not include the Ontario Health Premium (up to $900 per year above $20,000 of taxable income).
Sources: CRA Payroll Deductions Tables (Ontario, 2026) · KPMG Personal Tax Rates 2026
Last Updated: July 17th, 2026