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Federal tax in Ontario isn’t a separate bill. You file one return, and it shows federal tax at 14% on the first $58,523 of taxable income in 2026, with higher rates above that, plus Ontario tax on the same page. Someone earning $100,000 in Ontario pays about $13,302 federal and $6,723 to the province.
What are the federal tax brackets for 2026?
The federal rates don’t change with your province. These are the CRA’s 2026 brackets, applied to taxable income, and you can check them on its current year tax rates and income brackets page.
| Taxable income | Federal rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
Each rate hits only the slice of income inside its band. Crossing $58,523 doesn’t reprice the dollars below it, so a raise that lifts you into the 20.5% band taxes only the part of your income above that line at the higher rate, and everything below stays at 14%.
Here’s how that plays out. Say you have $70,000 of taxable income. The first $58,523 is taxed at 14%, which is $8,193.22. The remaining $11,477 is taxed at 20.5%, which is $2,352.79. That’s $10,546 before any credits. And if your boss gives you a $1,000 raise, only $205 of it goes to federal tax, so you keep the rest, before Ontario takes its share.
How does Ontario add its own tax?
The province charges its own brackets on the same taxable income.
| Taxable income | Ontario rate |
|---|---|
| Up to $53,891 | 5.05% |
| $53,891 to $107,785 | 9.15% |
| $107,785 to $150,000 | 11.16% |
| $150,000 to $220,000 | 12.16% |
| Over $220,000 | 13.16% |
Two extras sit on top of those rates. Ontario adds a surtax of 20% on your basic provincial tax above $5,818, and a further 36% on the part above $7,446. It also charges a health premium once taxable income passes $20,000. The CRA’s payroll tables give the formula. From $48,000 to $72,000 it’s the lesser of $600 and $450 plus 25% of income over $48,000. From $72,000 to $200,000 it’s the lesser of $750 and $600 plus 25% of income over $72,000. That 25 cents per dollar, in bands only a few hundred dollars wide, is why the tax on your next dollar jumps around $72,000 and $200,000.
How much federal tax do you pay in Ontario at different salaries?
We ran four salaries through the income tax calculator with Ontario selected. Taxable income comes out a little below pay, because some CPP contributions are deducted. The Ontario column includes the surtax and health premium.
| Salary | Federal tax | Ontario tax | Total tax as share of pay |
|---|---|---|---|
| $50,000 | $3,985.14 | $2,288.18 | 12.5% |
| $75,000 | $8,258.60 | $4,446.06 | 16.9% |
| $100,000 | $13,301.60 | $6,722.75 | 20.0% |
| $150,000 | $25,302.14 | $14,608.45 | 26.6% |
Federal tax is the bigger half at every level. The dollar gap widens as you earn more, which may be a surprise if you think of Ontario as the heavy one. At $100,000 the federal share is about two thirds of your income tax. CPP and EI come on top of these numbers, so the take-home figure is lower again. On $100,000 the calculator shows $5,769.52 in CPP and EI, leaving $74,206.13.
What can lower your federal tax bill?
Deductions such as an RRSP contribution reduce taxable income, and the saving comes at your top bracket on both the federal and Ontario side. Credits reduce the tax itself. The tax credits calculator is federal only, so it doesn’t cover Ontario’s own credits. And the marginal tax rate calculator shows what the next dollar costs you before you decide on an RRSP amount.
For the paycheque view, the take-home pay calculator does the same sums per pay period.
Common mistakes with federal and provincial tax
People add the top federal and top Ontario rates and call it their rate. That only works for the last dollars of very high incomes, and the surtax makes even that sum wrong. Use the calculator on your own numbers.
Another one: mixing up the tax on the return with what’s withheld on your pay. Your employer withholds an estimate all year, and the return settles the difference, so a refund or a balance owing is normal.
We haven’t covered special cases such as moving mid-year or income from another province, because we couldn’t confirm the rules from an official page.
Do you pay federal tax twice in Ontario?
No. Federal and Ontario tax are two different taxes on the same income, but they’re worked out on one return and paid in one go. Your employer’s withholding covers both, which is why the stub shows a single income tax line.
Sources, and how we checked them
The federal and Ontario brackets are the CRA‘s 2026 figures, page dated June 2026. The surtax thresholds and health premium formula are from the CRA’s T4032-ON payroll tables for Ontario. Worked figures come from this site’s income tax calculator using those rates, and they cover employment income only. CPP and EI amounts are in the same calculator.
Frequently asked questions
Do Ontarians pay federal and provincial tax separately?
You file one return. It works out federal tax and Ontario tax on the same taxable income and adds them together.
What is the lowest federal rate for 2026?
14% on taxable income up to $58,523. The top rate is 33% over $258,482.
How much tax does $100,000 pay in Ontario?
Our income tax calculator shows $13,301.60 federal and $6,722.75 Ontario for a salary of $100,000, a total of about 20% of pay. CPP and EI are extra.
Why is my taxable income lower than my salary?
The calculator deducts the extra layer of CPP contributions before working out tax, so taxable income comes out slightly below pay.
What is the Ontario surtax?
It is an extra 20% of basic Ontario tax above $5,818, plus 36% of the part above $7,446, per the CRA's Ontario payroll tables for 2026.
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