Updated Checked by the Tax-Services.ca editorial team How we check
Income tax in Toronto is the same as anywhere else in Ontario, because you pay it to the federal government and to Ontario, not to the city. On an $80,000 salary in 2026, that comes to $14,128: $9,243 federal and $4,885 Ontario. We found nothing on the CRA’s Ontario pages that adds a separate city income tax.
Who do you actually pay?
One return, one payment.
The CRA collects both parts, and you work out the Ontario share on form ON428, which goes in with your federal T1, so nobody sends a second cheque to Queen’s Park.
What decides the province is where you lived on 31 December. If you moved to Toronto in the fall, all of that year’s provincial tax goes to Ontario. If you left in November, none of it does.
The city does collect money from you in other ways, mainly property tax, and a municipal land transfer tax when you buy a home. Different bills, not covered here, but our Toronto taxes page walks through them.
During the year, your employer takes tax off each paycheque using the claim forms you filled in at hiring, the federal TD1 and the Ontario one, the TD1ON. If you’ve had a baby, bought a first home or picked up a second job since then, update them. A wrong form means too much or too little comes off, and you find out at tax time.
What are the Ontario tax brackets for 2026?
Ontario has five steps. The percentages apply to slices of income, not to the whole amount.
| 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% |
The Ontario basic personal amount is $12,989 for 2026. Two extras sit on top of the brackets. The Ontario Health Premium runs from $0 up to $900, and you owe it once income passes $20,000. There’s also a surtax on the Ontario tax itself, which starts to bite when that tax passes $5,818. All of these figures match the CRA’s 2026 payroll deductions tables for Ontario.
How much income tax does a Toronto salary pay?
Here’s what the income tax calculator gives for a single person with only employment income in 2026. The totals include federal tax, Ontario tax and the health premium.
| Salary | Total income tax | Ontario part | Share of salary |
|---|---|---|---|
| $25,000 | $1,559 | $808 | 6.2% |
| $45,000 | $5,243 | $1,905 | 11.7% |
| $60,000 | $8,320 | $2,982 | 13.9% |
| $80,000 | $14,128 | $4,885 | 17.7% |
| $120,000 | $26,888 | $9,386 | 22.4% |
| $200,000 | $62,952 | $24,076 | 31.5% |
CPP and EI are extra. At $80,000 they take $5,570 more, which leaves about $60,300 before any benefits, pension or union dues. Our take-home pay calculator puts that on a pay-period basis.
Picture Priya in Scarborough, who earns $60,000. Her income tax is $8,320 a year, about $693 a month, and the rest of her paycheque is hers once CPP and EI are out. If she gets a $5,000 raise, she keeps a bit over $3,500 of it after income tax, which is the next section’s point.
What does the next dollar cost?
Close to 30 cents at $80,000, when federal and Ontario are added together. That’s the number that matters for a raise, a bonus or an RRSP deduction. The marginal tax rate calculator shows it for your income.
Take a $5,000 RRSP deduction. It comes off the top of the income, so it saves at that rate, roughly $1,500. The RRSP calculator covers what the contribution grows into.
Where do people slip up?
A big one is reading a bracket rate as your tax rate. The 9.15% band doesn’t mean you lose 9.15% of your pay, and a person earning $80,000 pays that rate only on the slice between $53,891 and their taxable income. The share of salary column above is the honest number.
Another is forgetting the health premium and surtax, since neither shows on the bracket chart. Both are in our calculator, but be careful with the marginal rate near $200,000. It reads unusually high there, and we haven’t worked out why, so treat that reading with caution.
And the tools have limits. They don’t model Ontario’s LIFT credit for low earners, and the tax credits tool covers federal credits only. Those gaps matter more for lower incomes.
Dates? The 2025 return was due 30 April 2026 for most people, and 15 June for the self-employed, who still had to pay by 30 April. We haven’t found the CRA’s 2026 dates, so don’t plan on the same days without checking.
Where do these numbers come from?
Ontario brackets, the basic personal amount, the health premium and the surtax thresholds come from the CRA‘s 2026 payroll deduction tables for Ontario, which we re-read in October 2026. The rest is our own calculator output for 2026, verified in September 2026. This is an independent guide with no tie to the CRA or the province.
Frequently asked questions
Is there a separate city income tax in Toronto?
We found nothing on the CRA's Ontario pages that adds one. You pay federal tax and Ontario tax, worked out on one return.
What are the Ontario tax brackets in 2026?
There are five, from 5.05% up to $53,891 to 13.16% above $220,000. The Ontario basic personal amount is $12,989.
How much tax do I pay on $80,000 in Toronto?
Our calculator gives $14,128 for a single employee in 2026, including the Ontario Health Premium. CPP and EI add $5,570.
What is the Ontario Health Premium?
It's a charge collected through your return. Ontario says it runs from $0 at $20,000 of income or less up to $900 at the top.
Which province counts if I moved during the year?
The one where you lived on 31 December. The CRA says that province sets the provincial tax for the whole year.
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill