Planning your taxes in Ontario? Our comprehensive Ontario Income Tax Calculator helps you estimate your 2025 and 2026 tax liability accurately. Whether you are an employee, self-employed, or have investment income, this tool provides CRA-compliant calculations based on the latest federal and Ontario tax brackets. Ontario has a progressive tax system with five brackets ranging from 5.05 percent to 13.16 percent, plus a unique surtax system for higher-income earners.
Understanding your tax obligation is essential for effective financial planning. Our calculator follows the Canadian progressive marginal tax system, ensuring that each portion of your income is taxed at its appropriate rate, rather than applying a flat tax rate to your entire income. This approach aligns with the methodology used by the Canada Revenue Agency and professional tax preparation software like TurboTax.
Ontario Tax Rates 2025 & 2026
Ontario has a progressive provincial income tax system with five tax brackets. The rates start at 5.05 percent for lower incomes and increase to 13.16 percent for the highest income earners. Ontario also has a unique surtax system that adds additional tax for higher-income residents. Here are the current Ontario tax brackets:
2025 Ontario Provincial Tax Brackets
Taxable Income
Tax Rate
$0 – $52,886
5.05%
$52,886 – $105,775
9.15%
$105,775 – $150,000
11.16%
$150,000 – $220,000
12.16%
Over $220,000
13.16%
2026 Ontario Provincial Tax Brackets
Taxable Income
Tax Rate
$0 – $53,891
5.05%
$53,891 – $107,785
9.15%
$107,785 – $150,000
11.16%
$150,000 – $220,000
12.16%
Over $220,000
13.16%
Ontario Surtax System
One of the unique features of Ontario's tax system is the surtax, which applies additional tax to higher-income residents. The surtax is calculated based on your basic provincial tax after credits:
Ontario Surtax Rates:
First Surtax (20%): Applied when basic provincial tax exceeds $5,554 (2025) or $5,680 (2026)
Second Surtax (36%): Applied when basic provincial tax exceeds $7,107 (2025) or $7,270 (2026)
The surtax is cumulative, meaning the 36% surtax applies on top of the 20% surtax for high-income earners.
Ontario Health Premium
Ontario residents pay a health premium based on their taxable income. This premium helps fund healthcare services in the province. The premium amounts are:
Taxable Income
Annual Health Premium
$0 – $20,000
$0
$20,000 – $36,000
Up to $300
$36,000 – $48,000
$300 – $450
$48,000 – $72,000
$450 – $600
$72,000 – $200,000
$600 – $750
Over $200,000
$900 maximum
Federal Tax Rates 2025 & 2026
The federal tax system applies to all Canadians regardless of province of residence. These rates are progressive, meaning higher income portions are taxed at higher rates.
2025 Taxable Income
2025 Rate
2026 Taxable Income
2026 Rate
Up to $57,375
14.5%
Up to $58,523
14%
$57,375 – $114,750
20.5%
$58,523 – $117,045
20.5%
$114,750 – $177,882
26%
$117,045 – $181,440
26%
$177,882 – $253,414
29%
$181,440 – $258,482
29%
Over $253,414
33%
Over $258,482
33%
CPP & EI Contributions 2025-2026
Canada Pension Plan (CPP) and Employment Insurance (EI) premiums are mandatory deductions from your employment income.
CPP Base (2025): 5.95% on earnings between $3,500 and $71,300. Maximum: $4,034.10
CPP Base (2026): 5.95% on earnings between $3,500 and $74,600. Maximum: $4,230.45
CPP2 (2025): 4% on income between $71,300 and $81,200. Maximum: $396
CPP2 (2026): 4% on income between $74,600 and $85,000. Maximum: $416
EI (2025): 1.64% on employment income up to $65,700. Maximum: $1,077.48
EI (2026): 1.63% on employment income up to $68,900. Maximum: $1,123.07
Note: Self-employed individuals pay both employee and employer portions of CPP (double the standard rate). EI coverage for self-employed is optional in Ontario.
Ontario Basic Personal Amount
The Ontario basic personal amount is the income you can earn before paying provincial tax. For 2025, it is $11,865, and for 2026 it is $11,865. This is lower than the federal basic personal amount, but Ontario offers various credits including the Ontario Trillium Benefit and the Ontario Energy and Property Tax Credit.
Ontario Tax Credits
Ontario residents may be eligible for several tax credits that can reduce their tax payable or provide refundable benefits:
Ontario Trillium Benefit: Combines energy and property tax credits, and the Northern Ontario Energy Credit
Ontario Seniors' Public Transit Tax Credit: For eligible seniors using public transit
Ontario Childcare Access and Relief from Expenses (CARE) Tax Credit: Refundable credit for childcare expenses
Ontario Jobs Training Tax Credit: For eligible training expenses
How to Use This Ontario Tax Calculator
Select Your Tax Year: Choose between 2025 and 2026.
Enter Your Employment Income: Salary, wages, bonuses, commissions.
Add Self-Employment Income: Business or professional income.
Include Other Income: Rental, EI, OAS, CPP payments.
Enter Deductions: RRSP and FHSA contributions.
Report Investment Income: Capital gains (50% taxable), dividends with gross-up.
Enter Taxes Already Paid: Tax withheld from your paycheque.
Why Ontario's Tax System Matters
Ontario has a unique tax system with five brackets plus surtaxes and the health premium. The top combined federal-provincial marginal rate for high-income earners can exceed 53 percent. The province participates in the harmonized sales tax (HST) system with a combined rate of 13 percent.
Key features of Ontario's tax system include:
Progressive Brackets: Five brackets from 5.05% to 13.16%
Surtax System: Additional 20% and 36% surtax on high incomes
Health Premium: Up to $900 annually based on income
Trillium Benefit: Refundable credits for energy and property taxes
HST Rate: 13% harmonized sales tax
Why Use Our Ontario Tax Calculator
Progressive Marginal Tax System: Accurate CRA-style calculations.
2025 & 2026 Tax Year Support: Easily switch between tax years.
Ontario Surtax Calculation: Includes both 20% and 36% surtaxes.
Ontario Health Premium: Accurate premium based on income.
Complete Income Sources: Employment, self-employment, investments, dividends.
RRSP & FHSA Deductions: Reduces taxable income.
CPP & EI Calculations: Includes CPP2 for high earners.
Dividend Tax Credits: Federal eligible (15.02%) and ineligible (9.03%) credits.
Marginal & Average Tax Rates: Understand your tax burden.
Ontario has 5 tax brackets: 5.05% up to $52,886 (2025) or $53,891 (2026), 9.15% to $105,775, 11.16% to $150,000, 12.16% to $220,000, and 13.16% on income over $220,000.
Ontario surtax adds 20% on basic provincial tax over $5,554 (2025) and an additional 36% on tax over $7,107 (2025). This affects high-income earners, increasing their overall tax rate.
The Ontario Health Premium is an additional tax up to $900 annually, based on taxable income. It starts at $20,000 income and reaches the maximum $900 at incomes over $200,000.
The basic personal amount is $11,865 for both 2025 and 2026. You can earn this much before paying any provincial income tax.
Ontario has a harmonized sales tax (HST) rate of 13%, which includes 5% federal GST and 8% provincial portion.
The deadline is April 30, 2026 for most residents. Self-employed individuals have until June 15, 2026, but taxes owed must be paid by April 30.
RRSP contributions reduce taxable income, saving both federal and provincial taxes. A $5,000 contribution could save $1,500-$2,500 depending on your marginal rate, including surtax effects.
Combined federal and provincial rates range from about 20% to 53.5%. For example, at $100,000 income, your marginal rate is approximately 37.9% (20.5% federal + 11.16% provincial + surtax effects).
⚠️This tool is for information purpose only. We do not guarantee any claim. It is made based on data publicaly available on official website of concerned department.
Last Updated: March 2026 | Official Determination Required
