Ontario Income Tax Guide 2026

Ontario 2026 tax brackets and rates

Ontario uses a five-bracket system for 2026. Each bracket's rate applies only to income within that bracket — not to your total income. This is marginal tax: earning $52,000 does not mean your entire income is taxed at 9.15%. Only the $554 above the $51,446 threshold is taxed at that higher rate.

Brackets indexed annually to the Ontario inflation factor. These are the 2026 thresholds. Note: surtax adds an additional levy on top of regular provincial tax — see below.

Combined federal + Ontario rates 2026

When people talk about marginal tax rates, they usually mean the combined rate — federal plus provincial — on the next dollar of income. The federal brackets use different thresholds than Ontario's, so the combined rate can shift at several points across the income range.

*Does not include Ontario surtax. When surtax applies, the effective combined rate can reach 53.53%. Federal thresholds are approximate for 2026. Use our income tax calculator for a precise estimate.

Worked example: $80,000 salary in Ontario

If you earn $80,000 in employment income in Ontario in 2026, here is roughly how your provincial tax works before credits:

The Ontario surtax explained

Ontario is the only province with a surtax — an extra layer of provincial tax on top of the regular provincial tax. It kicks in when your basic Ontario tax (before the surtax but after most credits) exceeds certain thresholds.

In practice, the surtax starts to apply at roughly $80,000 to $90,000 of income and accelerates the effective rate for higher earners. To reach $5,710 in Ontario tax (before the surtax), you need roughly $80,000–$90,000 of taxable income after the basic personal amount. At that point, the effective combined marginal rate (including surtax) can exceed 53%.

The surtax is calculated on Schedule ON428, the same schedule used to calculate your basic Ontario tax. Tax software handles this automatically.

Ontario Health Premium (OHP)

The Ontario Health Premium is a separate levy paid to the province as part of your tax return. Despite its name, it does not entitle you to any additional health coverage — it is a general revenue tax. It is calculated on your total taxable income and increases in steps.

The OHP is reported on line 428 of the federal return but it is a provincial levy. It is not deductible as a medical expense. Your employer may deduct it from payroll — check your T4.

Ontario-specific tax credits and benefits

Ontario offers several refundable and non-refundable credits that reduce or eliminate provincial tax. Refundable credits pay you money even if your tax owing is zero. Non-refundable credits reduce your tax to zero but do not generate a refund on their own.

ON-BEN — Ontario Benefits

The Ontario Benefits application (ON-BEN, filed as part of your return) is a single application for three property and energy-related benefits: the Ontario Trillium Benefit, the Ontario Senior Homeowners' Property Tax Grant, and the Northern Ontario Energy Credit. You file it by completing Schedule ON-BEN with your return, even if you are not sure you qualify.

Ontario Trillium Benefit (OTB)

The OTB combines three credits into one monthly payment:

• Ontario Energy and Property Tax Credit (OEPTC) — for rent paid or property tax paid on your principal residence. The maximum credit is $1,248 for individuals under 65 ($1,265 if you pay property tax on a farmhouse). For seniors, the maximum rises to $1,533.
• Northern Ontario Energy Credit (NOEC) — for residents of northern Ontario, up to $176 for individuals.
• Ontario Sales Tax Credit (OSTC) — up to $360 per person in the household. Starts phasing out above $26,535 for single filers.

Payments are issued monthly from July through June of the following year based on last year's return. If your OTB is less than $360, it comes as a single lump-sum payment in July.

Ontario Senior Homeowners' Property Tax Grant

If you are 64 or older by December 31 of the tax year and you own your home, you may receive up to $500 back for property taxes paid. The grant phases out for net income above $35,000 for single seniors and above $45,000 for couples. You apply through the ON-BEN schedule.

Ontario Child Benefit (OCB)

The OCB pays up to $1,680 per child under 18 per year for low-to-moderate-income families. It is delivered with the Canada Child Benefit in a combined monthly payment by CRA. For 2026, the phase-out begins at a net family income of roughly $23,044 and reduces the benefit to nil somewhere above $150,000 depending on family size.

Ontario Tax Reduction

This non-refundable credit effectively eliminates provincial income tax for lower earners. In 2026, the reduction is worth up to $281. If you have two or more dependants with certain disabilities or are eligible yourself, you receive an additional amount per eligible person. The credit phases out as income rises.

Ontario Focused Flow-Through Share Tax Credit

If you invest in qualifying Ontario flow-through shares (typically mining exploration companies), you may receive a refundable credit of 5% of the qualifying amount. This stacks with the federal credit of up to 15%.

Common deductions that reduce your Ontario tax

Deductions reduce your taxable income before you apply either the federal or provincial rate. Most deductions work at both levels. Here are the ones Ontario residents use most often:

Ontario filing deadlines for 2026

Ontario residents file one return — the federal T1 General — and Ontario provincial tax is calculated on Schedule ON428 within the same return. There is no separate Ontario return to file.

Who pays Ontario provincial tax

You pay Ontario provincial tax if you are resident in Ontario on December 31 of the tax year. Even if you worked in another province or country for most of the year, residency on that single date determines which province's rates apply.

Part-year residents (people who moved to Ontario during the year or left during the year) prorate their Ontario credits based on the fraction of the year they were Ontario residents. The federal return captures this.

Non-residents who earn income from Ontario sources (rental property, employment) pay federal tax on that income, but they pay a surcharge (48% of federal basic tax) instead of provincial tax. They are not eligible for Ontario credits.

How Ontario compares to other provinces

Ontario sits in the middle of the pack for income tax burden. Its top combined rate of about 53.53% (including surtax) is lower than Nova Scotia (54%) and Quebec (53.31%) but higher than Alberta (48%) and BC (53.50% without surtax). For middle incomes — say $70,000 to $100,000 — Ontario is competitive, partly because the basic personal amount and Ontario tax reduction eliminate tax for lower earners.

The surtax is Ontario's most unusual feature. No other province imposes a tax-on-tax structure like this. It means that once your income climbs above roughly $90,000, the effective Ontario marginal rate rises faster than the published bracket rates suggest. At $150,000 of income, the surtax adds roughly 4–5 percentage points to the effective provincial rate.

Use the province comparison calculator to see your exact tax bill in Ontario versus Alberta, BC, or Quebec.

Frequently asked questions