Updated Checked by the Tax-Services.ca editorial team How we check
The Ontario personal tax credits return is form TD1ON, the sheet your employer asks you to fill in so it knows how much tax to hold back from your pay. The CRA’s 2026 version covers pay received on 1 January 2026 or later. It doesn’t file your taxes. It only tells payroll which credits to count while you’re being paid.
What is the TD1ON and who fills it in?
If you work for an employer in Ontario, you fill it in. The CRA tells employers to point new staff to the form page, have them complete it and send it back scanned or on paper. Your employer uses it in the payroll system.
The CRA also publishes a federal TD1 and a separate return for each province. The CRA page wording didn’t tell us if your employer needs the federal and the Ontario form together, so ask your payroll contact. We couldn’t check that.
What does the Ontario personal tax credits return change on your pay?
It changes the tax taken off each cheque, not the tax you owe for the year. When you file, your return does the real sum and settles any gap. So a TD1ON with no extra claims doesn’t cost you money for good, but it can mean a smaller cheque or a bigger refund later.
The basic amount is the biggest credit and nearly everyone gets it. In our data, taken from the CRA’s January 2026 Ontario payroll tables, the Ontario basic personal amount is $12,989 and the credit rate is 5.05%. That works out to $655.94 off Ontario tax. On the federal side, the full basic personal amount of $16,452 at 14% is worth $2,303.28. Together that’s $2,959.22 a year before any other claim.
| Item (2026) | Figure |
|---|---|
| Ontario basic personal amount | $12,989 |
| Ontario credit rate on the lowest step | 5.05% |
| Ontario tax saved by the basic amount | $655.94 |
| Federal basic personal amount (full) | $16,452 |
| Federal tax saved by the full amount | $2,303.28 |
One caution. We haven’t read the amounts printed on the 2026 form itself, so match ours against the form before you count on them.
What do those credits mean on each cheque?
Spread over 26 biweekly pay periods, the two basic amounts above are worth about $88.59 of federal tax and $25.23 of Ontario tax each time, so roughly $113.82 per paycheque. That’s the amount of tax your employer leaves in your pocket because you filed the form. Leave a real claim off and more tax comes off each cheque, which you only recover when you file.
Do you need to send a new one every year?
Do you have to send a fresh one each year? We couldn’t confirm the CRA’s own rule on when a new form is needed. A new child, a second job or a spouse who stops working looks like a good reason to send an updated one, and if your employer asks for a new form, do what they ask and don’t wait.
Second jobs deserve a thought. The basic amount is one amount, but you can be paid by two employers. If both count the full credit in their withholding, too little tax may come off and you could owe at filing. Say you earn $60,000 in Ontario. The income tax calculator gives $8,320.50 of income tax for the year, of which $5,338.30 is federal and $2,982.20 is Ontario. That’s the figure your total withholding should come near.
How can you check your pay against your credits?
Use the payroll deductions calculator to see what should come off a paycheque, then look at your stub. If the tax is much higher than expected, check the TD1ON first, because a missed claim is the usual reason. The tax credits calculator shows how much tax a claim saves, though it covers federal credits only, so it won’t price an Ontario one. The take-home pay calculator shows your net pay per period.
What should you do when you change jobs?
Hand the new employer a fresh form. Your old employer’s copy doesn’t travel with you, and the new payroll team has nothing to go on until it sees yours. Fill in your own situation as it stands on your first day, not as it was a year ago. If you start a second job while keeping the first, say so on the form, since the basic amount can only be counted once across your jobs.
Mistakes to avoid on the form
Claiming an amount you don’t qualify for is the worst one. If withholding is too low, you pay it back with the return. Leaving a real claim off costs you too, since the money is only recovered when you file.
A few smaller ones catch people. Don’t forget to update the form if your situation ends a claim. Don’t sign it without reading each box. And don’t confuse this form with your tax return. One goes to your employer, the other goes to the CRA.
We couldn’t find what happens if you never hand one in. Ask payroll. If they’re vague, look at the first stub and compare it with the deductions calculator above.
The sources behind this page
The form details come from the CRA‘s TD1ON 2026 page. The Ontario and federal amounts come from the CRA’s 2026 tax rates page and the January 2026 Ontario payroll tables, and the examples are our own calculator results.
Frequently asked questions
What is the TD1ON?
It's the Ontario Personal Tax Credits Return that you give your employer so payroll knows which credits to count when it withholds tax.
Do I file the TD1ON with the CRA?
No. It goes to your employer. Your tax return is a separate filing to the CRA.
How much is Ontario's basic personal amount worth?
In our data it is $12,989 at 5.05%, which is $655.94 off Ontario tax. Check it against the form.
Do I need a federal TD1 too?
The CRA publishes a federal TD1 and provincial ones. We couldn't confirm the rule from the page, so ask your employer.
Does the form change my final tax for the year?
No. It changes what is held back each pay. Your return works out the real tax when you file.
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