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Ontario taxes income in five steps in 2026, from 5.05% on the first $53,891 up to 13.16% above $220,000. Ottawa adds its own five steps on top, so a worker in Ontario with $90,000 of income pays 29.6% on the next dollar earned.
Why are there two sets of brackets?
You file one return, but it holds two tax calculations: the federal part uses a single rate schedule for Ontario residents and everyone else outside Quebec, and the Ontario part is worked out on the same taxable income with its own rates and credits. Add the two. That’s your income tax, before any refund or balance owing.
Does crossing a bracket line tax all your income at the higher rate? No. Each rate covers just the slice of income sitting in its bracket. Get a raise that lifts you past $107,785 and your earlier dollars are taxed as before. Only the ones above the line cost more.
Ontario and federal tax brackets for 2026
| Ontario taxable income | Ontario rate | Federal taxable income | Federal rate |
|---|---|---|---|
| Up to $53,891 | 5.05% | Up to $58,523 | 14% |
| $53,891 to $107,785 | 9.15% | $58,523 to $117,045 | 20.5% |
| $107,785 to $150,000 | 11.16% | $117,045 to $181,440 | 26% |
| $150,000 to $220,000 | 12.16% | $181,440 to $258,482 | 29% |
| Over $220,000 | 13.16% | Over $258,482 | 33% |
The basic personal amount shelters your first slice of income. In Ontario it’s $12,989. The federal amount is $16,452 at lower incomes and shrinks toward $14,829 for very high earners.
What is the Ontario surtax?
It’s a charge on the provincial tax itself, not on your income. Ontario takes 20% of its own tax above $5,818, plus a further 36% of its tax above $7,446. That makes the true rate on high incomes higher than the table suggests. At $150,000 the next dollar is taxed at 43.4% in total, not the 37.16% you get by adding 26% and 11.16%.
The Ontario Health Premium is a separate charge, and we haven’t covered it here. Look up the current schedule before you treat any figure as final.
How much tax do you pay at $60,000, $90,000 and $150,000?
The income tax calculator gives these results for employment income in 2026. They include CPP and EI credits, and nothing else.
| Income | Federal tax | Ontario tax | Total tax | Average rate |
|---|---|---|---|---|
| $60,000 | $5,338.30 | $2,982.20 | $8,320.50 | 13.9% |
| $90,000 | $11,251.60 | $5,781.96 | $17,033.55 | 18.9% |
| $150,000 | $25,302.14 | $14,608.45 | $39,910.59 | 26.6% |
Your average rate sits well below your top rate, because the first dollars are taxed lightly. At $90,000 you pay 18.9% on average, yet the next $1,000 of ordinary income costs 29.6%, as the marginal tax rate calculator shows. At $150,000 that same $1,000 costs 43.4%.
Other kinds of income are cheaper at the margin. Capital gains at $90,000 cost 14.8% on the next dollar, since only half a gain is taxed. Eligible dividends cost 6.4%.
What don’t the brackets tell you?
Quite a lot, and it mostly changes your real bill.
- Payroll deductions come on top. On $90,000, CPP and EI take $5,769.52 more than income tax does.
- Credits cut your tax after the brackets are applied. Medical costs, donations, and the age or disability amounts aren’t in the table above, so try the tax credits calculator for those.
- An RRSP contribution is a deduction, so it takes tax off at your top rate.
- Your employer withholds tax through the year from payroll tables, and the bill on your return can differ.
- Brackets are indexed each year, so last year’s numbers are wrong for this one.
Wondering what an RRSP deposit could save you? Try the RRSP calculator. For what actually reaches your account each pay, the take-home pay calculator handles the payroll side.
Where the numbers come from
Federal and Ontario rates and thresholds are the 2026 figures published by the Canada Revenue Agency, checked on 29 September 2026. The surtax thresholds and the payroll limits also come from CRA tables. This site has no link with any government body.
Frequently asked questions
What's the lowest Ontario tax rate in 2026?
5.05% on taxable income up to $53,891. It then rises to 9.15% up to $107,785.
Do I pay the top rate on all my income?
No. Each rate applies only to the slice of income inside its bracket, so your earlier dollars stay at the lower rates.
How much tax do I pay on $90,000 in Ontario?
The calculator shows $17,033.55 in federal and Ontario income tax, an average rate of 18.9%, before CPP and EI.
What's the Ontario surtax?
It's 20% of Ontario tax above $5,818, plus 36% of Ontario tax above $7,446, so it hits mid and higher earners.
Do the brackets change every year?
Yes. Both governments index them, so use the figures for the tax year you're filing.
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.