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Toronto has no income tax of its own. You pay income tax to the federal government and to Ontario, on one return, and the city bills you for other things such as property tax. On an $80,000 salary in 2026 the total is $14,128: $9,243 federal and $4,885 Ontario. We found no separate city income tax on the CRA’s Ontario pages.
Does Toronto charge its own income tax?
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. Those are different bills. Our Toronto taxes page lists them, and there are separate articles on Toronto property tax, sales tax in Toronto and the vacant home tax.
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 income tax rates and 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.
When does the Ontario surtax apply?
The surtax is charged on your basic Ontario tax, not on income. Nothing is added if that basic tax is $5,818 or less. Above $5,818 the surtax is 20 percent of the extra, and above $7,446 it is a further 36 percent of the extra. The table shows how it builds for a single employee in 2026, with the health premium at $750 in each case.
| Salary | Basic Ontario tax | Surtax | Health premium | Ontario total |
|---|---|---|---|---|
| $80,000 | $4,135 | $0 | $750 | $4,885 |
| $100,000 | $5,947 | $26 | $750 | $6,723 |
| $120,000 | $8,000 | $636 | $750 | $9,386 |
| $150,000 | $11,348 | $2,511 | $750 | $14,608 |
We worked these out in code from the CRA’s 2026 Ontario tables and they match our calculator. Our Ontario surtax article and the Ontario tax brackets page go further.
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. Be careful with the marginal rate near $200,000, because it reads close to 73 percent there. The reason is the health premium: above $200,000 of taxable income it rises by 25 cents on each dollar until it reaches $900 at $200,600. That step lasts for only $600 of income, so nobody pays 73 percent on a whole raise.
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. For the 2026 return the usual dates are 30 April 2027, and 15 June 2027 for the self-employed (payment still due 30 April 2027). The CRA’s 2027 deadlines page lists June 15, 2027 and April 30, 2027 for the self-employed, and April 30, 2027 is the usual date for everyone else. Check the CRA page before you plan around them.
Where do these numbers come from?
Ontario brackets, the $12,989 basic personal amount, the health premium and the surtax thresholds come from the CRA’s 2026 payroll deductions tables for Ontario, which we re-read in November 2026. The federal brackets are on the CRA’s 2026 tax rates page. The dollar figures are our own calculator output, rechecked by a second calculation in code. 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?
No. We found nothing on the CRA's Ontario pages that adds a city income tax. You pay federal tax and Ontario tax, worked out on one return. The City of Toronto collects other taxes, such as property tax and a municipal land transfer tax when you buy a home.
What are the Ontario tax brackets in 2026?
There are five: 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. The Ontario basic personal amount is $12,989. A surtax and a health premium of up to $900 sit on top of the brackets.
How much tax do I pay on $80,000 in Toronto?
Our 2026 estimate for a single employee is $14,128 in income tax: $9,243 federal and $4,885 Ontario, which includes a $750 health premium. CPP and EI add $5,570. That leaves about $60,300 before benefits, pension or union dues, and before credits you may claim.
Which province counts if I moved during the year?
The one where you lived on December 31. The CRA says that province sets the provincial tax for the whole year. If you moved to Toronto in the fall, all of that year's provincial tax goes to Ontario, and if you left in November, none of it does.
What is the Ontario surtax?
A tax on your basic Ontario tax. Nothing is added up to $5,818 of basic tax. Above that it is 20 percent of the excess, plus another 36 percent of the amount above $7,446. At $120,000 of salary it adds about $636, and at $150,000 about $2,511.
Does the Ontario Health Premium count as income tax?
It is charged on your return alongside Ontario tax, so our totals include it. It is not a bracket rate. It starts above $20,000 of taxable income and reaches $750 at about $72,600 and $900 above $200,600. Check your return to see it.
- 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