Results are estimates for educational purposes only. Based on 2026 federal and Ontario tax rates. Always consult a qualified accountant.
Ontario income tax overview
Ontario is Canada's most populous province and home to Toronto, the country's largest city and financial hub. Ontario's provincial tax uses a progressive bracket system with five rates ranging from 5.05% up to 13.16% for the highest earners, plus a separate Ontario Health Premium that applies above certain income thresholds. Ontario also has a surtax that kicks in for higher provincial tax amounts, effectively increasing the marginal rate further for upper-middle and high earners. Toronto's high cost of living, particularly housing, means that a salary that goes a long way in other provinces can feel much tighter in the GTA (Greater Toronto Area). Ontario's economy is the most diversified in Canada, spanning finance, manufacturing, technology, and entertainment.
2026 Ontario tax rate
Tax rate
Taxable income
5.05%
Up to $52,886
9.15%
$52,887 – $105,775
11.16%
$105,776 – $150,000
12.16%
$150,001 – $220,000
13.16%
Over $220,000
Ontario also applies a surtax of 20% on provincial tax over $5,710 and an additional 36% on provincial tax over $7,307, plus a separate Ontario Health Premium up to $900/year for higher earners.
Worked example: $65,000 salary in Ontario
A $65,000 salary in Ontario results in approximately $4,550 in provincial tax (effective ~7%), plus roughly $7,800 in federal tax (after the Basic Personal Amount credit), $3,665 in CPP, and $1,079 in EI. Annual take-home is approximately $47,906, or $1,842 bi-weekly.
Key facts: 5 provincial brackets (5.05%–13.16%) · Surtax applies above $5,710 in provincial tax · Ontario Health Premium for higher earners
Frequently asked questions — Ontario income tax
Ontario applies an additional surtax — 20% on provincial tax exceeding $5,710, and a further 36% on provincial tax exceeding $7,307 — which effectively raises the marginal rate for middle and upper-middle income earners beyond the headline bracket rates.
The Ontario Health Premium is a separate charge of up to $900 per year, scaled to income, applied to most Ontario taxpayers earning above $20,000, funding the province's health care system. It's calculated separately from regular income tax.
Yes, significantly. The Greater Toronto Area has the highest housing costs in Canada outside Vancouver, meaning the same salary provides a noticeably different standard of living in Toronto compared to smaller Ontario cities.
Yes, employers in Ontario pay an Employer Health Tax (EHT) on their payroll, though this doesn't directly affect employee paychecks — it's a cost borne by the employer.
Ontario generally has lower combined tax than Quebec at most income levels, since Quebec's provincial rates are among the highest in the country, though Quebec offers some unique credits and programs (like lower childcare costs) that can offset this for some residents.