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Income tax in Ontario has two layers: federal tax and Ontario tax, added together on one return. On a $60,000 salary for 2026 the estimate is $8,320.50, made up of $5,338.30 federal and $2,982.20 Ontario, an average rate of 13.9%. CPP and EI are extra.
What are the Ontario tax rates for 2026?
| Ontario 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% |
| Above $220,000 | 13.16% |
Provincial or territorial income tax rates apply in addition to federal income tax rates.
CRA, tax rates and income brackets for 2026, canada.ca
These rates cover income earned in 2026, reported in 2027. The federal rate on the same slices is 14% up to $58,523 and 20.5% up to $117,045. Ontario’s basic personal amount in our calculator is $12,989.
Does the top rate apply to all your income?
No, and this trips up a lot of people. Each rate applies only to the slice of income inside its band. Take $60,000 of taxable income. The first $53,891 is taxed at 5.05%, which is $2,721.50. The remaining $6,109 is taxed at 9.15%, which is $558.97. That makes $3,280.47 of Ontario tax before credits. Earning more never drops your take-home below what you had, because only the extra dollars land in the higher band.
That won’t match the calculator’s $2,982.20 for a $60,000 salary, and it isn’t meant to. The calculator starts from salary rather than taxable income, takes off CPP and EI first, subtracts credits such as the basic personal amount, and adds the health premium. The slice sum above only shows how the bands work.
Say Sam in Ottawa gets a $1,000 raise while already inside the 9.15% band. Only that extra $1,000 is taxed at the higher Ontario rate, plus the federal rate on top. The rest of the pay doesn’t change. A raise can’t leave you worse off before tax time, even if the extra feels thin.
What is the Ontario surtax?
It’s a second charge on the Ontario tax itself, not on your income. In the 2026 figures we use, it adds 20% of Ontario tax above $5,818, and another 36% of the part above $7,446. At $80,000 it doesn’t yet touch the next dollar you earn.
There’s also the Ontario Health Premium, paid through your return. Our calculator adds $600 at $60,000 of taxable income and $750 at $100,000. We haven’t checked the premium step by step against Ontario’s own page, so treat those two amounts as estimates.
How much income tax do you pay in Ontario?
Here’s what the income tax calculator gives for a salary with no other income.
| Salary | Federal | Ontario | Total tax | Average rate |
|---|---|---|---|---|
| $40,000 | $2,691.26 | $1,671.46 | $4,362.71 | 10.9% |
| $60,000 | $5,338.30 | $2,982.20 | $8,320.50 | 13.9% |
| $80,000 | $9,242.60 | $4,885.26 | $14,127.85 | 17.7% |
| $100,000 | $13,301.60 | $6,722.75 | $20,024.35 | 20.0% |
| $150,000 | $25,302.14 | $14,608.45 | $39,910.59 | 26.6% |
CPP and EI come on top, and they’re not in this table. At $60,000 they add $4,339.75, and from about $74,600 the CPP part stops growing at its yearly limit.
Why does the next dollar cost so much more?
Because the surtax multiplies the Ontario rate. At $60,000 and again at $80,000 the next dollar carries 29.65% (20.5% federal and 9.15% Ontario). By $100,000 the surtax has started, and the marginal tax rate calculator shows 31.48%. At $150,000 it reads 43.41%. Is that a typo? No. Federal 26% plus Ontario 11.16% grossed up by the surtax gets you there.
So a raise, a bonus or a side job near those levels leaves less than you’d guess. The take-home pay calculator shows what’s left after everything comes off the cheque.
How do the two layers fit on one return?
You don’t file twice. One T1 return calculates federal tax first, then Ontario tax on the same taxable income, then adds the two. The Ontario part is smaller at every level, but it grows faster than you’d think once the surtax and health premium are in.
Look at the $100,000 row above. Ontario takes $6,722.75 there, about a third of the $20,024.35 total. At $40,000 it’s $1,671.46 of $4,362.71, closer to 38%. So the province’s share drifts down, then back up at the top.
Mistakes and limits
Don’t read a pay stub as your final bill. The stub shows what your employer held back, and the return settles the real amount. The tax refund calculator compares the two.
Our tool is an estimate. It uses the basic personal amount, the Canada employment amount, and the CPP and EI credits. It leaves out benefits, refundable credits, and most other claims. Near $200,000 the tool’s Ontario marginal rate looks odd because of the health premium steps, so we don’t quote one there.
The tax credits calculator is federal only, and Ontario credits need a separate look.
Dates? For the 2025 return, most people had until 30 April 2026, and the self-employed until 15 June 2026. We couldn’t find published dates for the 2026 return. If you work for yourself, our guide to self-employed tax covers instalments.
The sources behind this page
Federal and Ontario rates and brackets are the 2026 tables on the Canada Revenue Agency‘s rates page. The surtax thresholds and basic amount follow its Ontario payroll tables. Health premium amounts and the CPP and EI limits come from our own calculator data. Filing dates come from CRA pages read on 30 September 2026. No level of government runs or endorses this site.
Frequently asked questions
How much income tax do you pay in Ontario on $60,000?
The 2026 estimate is $8,320.50, made up of $5,338.30 federal and $2,982.20 Ontario tax. CPP and EI of $4,339.75 come on top.
What are the Ontario tax brackets for 2026?
They are 5.05% up to $53,891, 9.15% to $107,785, 11.16% to $150,000, 12.16% to $220,000 and 13.16% above that.
What is the Ontario surtax?
It is an extra charge on Ontario tax: 20% of the amount above $5,818 and another 36% above $7,446 in the 2026 figures we use.
Why does my tax rate jump near $100,000?
The surtax starts to apply, so the next dollar carries about 31.48% instead of 29.65% in our estimate.
When is the next Ontario return due?
The 2025 return was due 30 April 2026 for most people. We couldn't find dates for the 2026 return yet.
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