Ontario Personal Tax Brackets
Ontario's 2026 personal income tax brackets run from 5.05% to 13.16%, with the first two thresholds at $53,891 and $107,785. Surtax and the Ontario Health Premium are calculated separately.
Ontario · Updated September 23, 2026
Definition
Ontario personal income tax generally applies based on residence at the end of the tax year. It is calculated separately from federal tax using Form ON428, with the result reported on T1 line 42800. The calculation includes provincial credits, surtax, and the Ontario Health Premium. Special rules apply to newcomers, emigrants, and business income allocated to more than one province.
Key rules
The CRA's 2026 rates apply to each slice of taxable income:
| 2026 taxable income slice | Ontario rate |
|---|---|
| Up to $53,891 | 5.05% |
| Over $53,891 to $107,785 | 9.15% |
| Over $107,785 to $150,000 | 11.16% |
| Over $150,000 to $220,000 | 12.16% |
| Over $220,000 | 13.16% |
- The $150,000 and $220,000 thresholds are fixed; the lower thresholds are indexed. Federal thresholds are different, so a federal rate cannot be assigned to an entire Ontario bracket.
- The top ordinary-income marginal rate is approximately 53.53% above $258,482: 33% federal plus 13.16% Ontario multiplied by 1.56 for both surtax layers. This is not a rate on all income or on dividends.
- The CRA's 2026 Ontario parameters set surtax thresholds at $5,818 and $7,446 of basic Ontario tax. The Health Premium is separate, starts above $20,000 of taxable income, and is capped at $900.
- ON428 credits and reductions affect the final liability. The Ontario Trillium Benefit is a separate benefit, not a deduction from the bracket calculation.
Example
An Ontario resident has $180,000 of taxable income in 2026. The bracket calculation before credits is:
Ontario bracket tax (before BPA, credits, surtax, and OHP): $53,891 × 5.05% $2,721.50 $53,894 × 9.15% $4,931.30 $42,215 × 11.16% $4,711.19 $30,000 × 12.16% $3,648.00 Total $16,011.99
This is not the final Ontario bill. Apply the Basic Personal Amount and other eligible credits, then the surtax, other ON428 adjustments, and the Health Premium. Use the tax-year form or certified software for the complete calculation.
Common mistakes
- Treating Ontario brackets as identical to federal brackets. The bracket thresholds and rates differ; taxpayers must compute Ontario tax separately on Form ON428.
- Applying the highest bracket reached to all income, rather than only the portion within that bracket.
- Forgetting surtax or treating the Health Premium as part of the bracket rates.
- Using the prior year's thresholds or treating gross employment pay as taxable income without considering deductions.
Related concepts
Sources
- Taxation Act, 2007 (Ontario), SO 2007, c. 11, Sch. A, Part II
- Income Tax Act (Canada), RSC 1985, c. 1 (5th Supp.)
- Ontario Ministry of Finance personal tax publications
See also
- https://www.ontario.ca/document/filing-your-personal-income-tax-return
- https://www.canada.ca/en/revenue-agency/services/tax/individuals/tax-rates-brackets/current-year.html
- https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4032-payroll-deductions-tables/t4032on-jan/t4032on-january-general-information.html
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