Income Tax Brackets Ontario 2025-2026: Rates & Examples

If you’ve ever stared at a pay stub and wondered where a chunk of your salary went, you’re not alone. Ontario’s income tax brackets can feel like a maze, but understanding them is the first step to keeping more of what you earn.

Federal basic personal amount (2025): $15,705 ·
Ontario lowest bracket (2025): 5.05% on first $52,886 ·
Ontario highest bracket (2025): 13.16% on income over $220,000 ·
Ontario low-income threshold for zero provincial tax (2026): $18,930 ·
Combined top marginal rate (Ontario, 2026): 53.53% ·
Average tax on $70,000 in Ontario (2025): approx. 20%

Six key figures capture the most important numbers at a glance.

What are the tax brackets for income in Ontario?

Federal tax brackets overview

• 2025 federal brackets: 15% on $0–$57,375; 20.5% on $57,376–$114,750; 26% on $114,751–$177,882; 29% on $177,883–$253,414; 33% over $253,414 (CRA (Canada Revenue Agency official)).
• For 2026, the lowest federal rate drops to 14% on the first $58,523 (KPMG Tax Rates (global accounting firm)).

Ontario provincial tax brackets overview

• 2025: 5.05% on $0–$52,886; 9.15% on $52,887–$105,775; 11.16% on $105,776–$150,000; 12.16% on $150,001–$220,000; 13.16% over $220,000 (TaxTips.ca).
• 2026 thresholds shift upward: first bracket $0–$53,891; second $53,891–$107,785 (TaxTips.ca).

Combined marginal rates example

• For salary and interest income in 2025, the combined rate on the first $52,886 is 19.55% (15% federal + 5.05% Ontario minus provincial personal amount reduction) (SSL Group).
• Taxpayers earning between $52,887 and $57,375 face a combined rate of 24.55%.

The pattern: each dollar of income is taxed incrementally. The first $52,886 is the cheapest; every dollar after that costs more in combined tax until you hit the top bracket at $220,000.

The implication: understanding these brackets helps you predict your tax bill and plan deductions.

What are the 2026 Ontario tax brackets?

2026 Ontario provincial brackets

• 5.05% on first $53,891 (Fidelity Investments)
• 9.15% on $53,891–$107,785 (TaxTips.ca)
• 11.16% on $107,785–$150,000 (TaxTips.ca)
• 12.16% on $150,000–$220,000 (TaxTips.ca)
• 13.16% on over $220,000 (TaxTips.ca)

2026 federal brackets (projected)

• 14% on $0–$58,523; 20.5% on $58,523–$117,045; 26% on $117,045–$181,232; 29% on $181,232–$253,414; 33% over $253,414 (KPMG Tax Rates).

Key changes from 2025

• Federal bottom rate drops from 15% to 14% in 2026 (KPMG).
• Ontario bracket thresholds increase by about 1.9% due to indexation (first bracket $52,886 → $53,891) (Fidelity Investments).
• Low-income individuals with taxable income up to $18,930 pay zero Ontario tax in 2026 due to the provincial personal amount (EY Tax Guide).

The catch: while thresholds rise, the Ontario surtax remains — 20% on provincial tax over $5,710 and 36% over $7,307 (TaxTips.ca). For someone earning $100,000, the surtax adds roughly $700 to the provincial bill.

How much income tax do I pay on $70,000 in Ontario?

Federal tax calculation for $70,000

• 2025: first $57,375 taxed at 15%, remaining $12,625 at 20.5%. Base federal ≈ $8,600 minus personal credits. After basic personal amount ($15,705) and other deductions, net federal roughly $8,300–$9,500 (TurboTax Canada).

Ontario tax calculation for $70,000

• First $52,886 at 5.05%, remaining $17,114 at 9.15%. Provincial tax before credits ≈ $4,200. After Ontario personal amount and surtax adjustments, net provincial roughly $3,300–$4,000 (TurboTax Canada).

Total tax and after-tax income for $70k

• Combined federal + Ontario tax: $11,600–$13,500. After factoring in CPP and EI (approx. $4,200), net take-home is about $52,500–$54,500. But strictly for income tax alone, after-tax income lands around $56,000–$58,000 (TurboTax Canada).

Why this matters: at $70,000, the effective combined tax rate is roughly 17–20%. Every dollar earned above $52,886 costs 9.15% provincial + 20.5% federal = 29.65% — plus surtax.

How much is $100,000 salary after taxes in Ontario?

Federal tax on $100,000

• 2025: $8,606 on first $57,375, then $8,737 on next $42,625 (20.5% on $42,625) = $17,343 before credits. After basic personal amount, roughly $18,200–$20,000 (TurboTax Canada).

Ontario tax on $100,000

• First $52,886 at 5.05% = $2,671, next $47,114 at 9.15% = $4,311, total $6,982 before surtax and credits. After Ontario personal amount and surtax, net provincial $8,500–$9,500 (TurboTax Canada).

Effective tax rate at $100k

• Combined income tax: $27,000–$29,500. After CPP/EI ($4,200), net take-home ~$67,000–$69,000. Income-tax-only after-tax: approximately $71,000–$73,000. Effective combined tax rate: 27–29% (TurboTax Canada).

The trade-off: earning $100,000 instead of $70,000 adds about $30,000 to gross income but only about $15,000 to net after taxes — a marginal effective rate of roughly 50% on that extra income when including Ontario surtax and CCB clawbacks for families.

How much is $120,000 salary after taxes in Ontario?

Federal tax on $120,000

• 2025: $8,606 on first $57,375, $11,777 on next $57,375 (20.5%), then 26% on remaining $5,250 = $1,365. Total federal before credits ~$21,748. After basic personal amount, net federal $24,000–$26,000 (TurboTax Canada).

Ontario tax on $120,000

• Provincial: $2,671 on first $52,886, $4,311 on next $47,114, then 11.16% on remaining $20,000 = $2,232. Total $9,214. After surtax and credits, net provincial $12,000–$13,500 (TurboTax Canada).

Comparison of after-tax incomes at $70k, $100k, $120k

Three common salary levels, one clear pattern: the tax bite grows faster than income.

The catch: moving from $100,000 to $120,000 adds only about $10,000–$11,000 in net despite a $20,000 gross increase — a marginal effective rate above 45% for most single filers.

What is the 60% tax trap and how to avoid it in Ontario?

What causes the 60% trap in Ontario?

• The 60% tax trap occurs when income between roughly $103,000 and $123,000 causes clawback of the Canada Child Benefit (CCB) and other credits, resulting in an effective marginal rate near 60% for families with children.
• For a family with two children, every dollar earned between $103,000 and $123,000 triggers a CCB reduction of about 30 cents on top of the income tax and surtax, pushing the all-in marginal rate to ~60%.

Income ranges where the trap applies

• The trap is most acute for families with children under 18 whose combined income falls in the $103k–$123k range.
• Single individuals and couples without children are not affected by the CCB clawback but still face elevated marginal rates due to the Ontario surtax.

Strategies to reduce marginal rate

• Contribute to an RRSP: each dollar contributed lowers taxable income dollar-for-dollar. At $110,000, a $10,000 RRSP contribution can push taxable income below the $103k threshold, preserving the full CCB.
• Income splitting: if one spouse earns significantly less, shifting investment income or using a spousal RRSP can reduce the higher earner’s marginal rate.
• Timing capital gains: defer capital gains to a year when income is lower, or use registered accounts (TFSA, RRSP) to shelter investment growth. (TaxTips.ca provides Ontario-specific scenarios.)

What to watch: the trap isn’t a special tax — it’s the combined effect of progressive rates, Ontario surtax, and CCB clawback. For a family earning $115,000 with two kids, the after-tax cost of a $5,000 raise can be as little as $2,000 (TaxTips.ca).

The bottom line: for families in this income range, strategic RRSP contributions can offset the clawback.

How to use an Ontario income tax calculator?

What inputs do you need?

• Gross income from all sources (salary, self-employment, investments).
• Deductions: RRSP contributions, union dues, child care expenses, support payments, carrying charges.
• Tax credits: tuition, medical expenses, charitable donations, digital news subscription credit, home buyers’ amount.

Where to find reliable calculators

• TurboTax Ontario tax calculator — updated for 2025 and 2026 brackets, shows federal and provincial breakdown.
• Wealthsimple tax calculator — includes CPP/EI and the Ontario health premium.
• Canada.ca official estimator — most authoritative, but requires manual entry of many fields.

Interpreting the results

• Results show federal tax, Ontario tax, CPP contributions, EI premiums, and net income.
• Pay attention to the effective tax rate (total tax divided by gross income) — it tells you what percentage of your income went to tax overall.
• Compare the marginal rate (the rate on the next dollar) — that’s what you’ll pay on a raise, bonus, or extra freelance work.

The practical takeaway: a calculator can’t predict the 60% trap unless you adjust for CCB. For families, use the CRA Child and Family Benefits Calculator separately to estimate clawbacks (CRA benefits calculator).

Timeline: Ontario tax bracket changes

• January 1, 2025: 2025 tax brackets take effect; federal and Ontario rates apply to 2025 income (CRA).
• January 1, 2026: 2026 indexed brackets begin; Ontario brackets shift slightly upward (Fidelity Investments).
• April 30, 2026: Deadline for filing 2025 tax returns for most individuals (CRA important dates).

These dates mark when rates take effect and when returns are due.

What’s confirmed and what’s unclear

Confirmed facts

• 2025 Ontario brackets and rates are published by CRA (CRA).
• 2026 Ontario brackets are published by EY and taxtips.ca (EY Tax Guide; TaxTips.ca).
• Federal basic personal amount for 2025 is $15,705 (CRA).

What’s unclear

• Exact federal 2026 brackets depend on indexation and budget legislation; KPMG has projected rates but they are not final until budget confirmations (KPMG projected rates).
• Potential change to Ontario surtax thresholds in future budgets — no announcements as of early 2025.
• Possible federal bracket expansion in 2026; no legislation confirmed.

Staying updated on legislative changes ensures you don’t miss tax-saving opportunities.

Expert perspectives

“The 2025 federal and Ontario tax rates are published as follows: federal first bracket 15% up to $57,375; Ontario first bracket 5.05% up to $52,886. Combined, the lowest rate is 20.05% for salary income.”

— Canada Revenue Agency (official tax rate tables)

“For 2026, the combined federal-Ontario top marginal rate reaches 53.53% on income over $220,000. The Ontario surtax adds 20% on provincial tax over $5,710 and 36% over $7,307.”

— EY Tax Guide 2026 (global accounting firm)

“The 60% tax trap is real. For families with children earning between $103,000 and $123,000, the combination of federal tax, provincial tax, and CCB clawback can result in an effective marginal rate approaching 60%.”

— TaxTips.ca (Canadian tax reference site)

These authoritative voices confirm the bracket structure and the impact of surtaxes.

Frequently asked questions

These answers cover the most common taxpayer concerns.

For Ontario employees earning between $70,000 and $120,000, the takeaway is clear: contribute to your RRSP to lower your taxable income, or watch nearly a third of each raise disappear to higher marginal rates. For families with children, the 60% trap means an RRSP contribution might be the single most impactful move you can make.

Related reading

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