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Provincial tax in Ontario starts at 5.05% on the first $53,891 of taxable income and rises to 13.16% above $220,000 in 2026. Two extras sit on top of those rates, a surtax for higher earners and the Ontario Health Premium, and they’re the reason Ontario’s real tax curve isn’t smooth.
So the table of brackets is only half the story.
Ontario taxes you in two places at once, because the federal return applies to the same income. Most of us only ever see the combined result on a pay stub or a notice of assessment, and never the pieces, which is why the province’s part looks smaller and simpler than it really is.
What are the Ontario tax brackets for 2026?
| 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% |
These come from the CRA’s payroll tables for Ontario, effective 1 January 2026. Like the federal ones, each rate applies only to the slice of income inside its band. The progressive tax guide shows how that adds up.
When does the Ontario surtax apply?
The surtax isn’t charged on your income. It’s charged on the Ontario tax you’ve already worked out, after credits. If that basic Ontario tax is $5,818 or less, there is no surtax. Above $5,818 you pay 20% of the excess, and above $7,446 you add another 36% of that excess.
In practice, someone with $100,000 of taxable income has about $6,285 of basic Ontario tax, so the surtax is a small $93. At $150,000 the basic tax is $11,708 and the surtax jumps to $2,712. So on Ontario’s own side, the next dollar at $140,000 is taxed at 11.16% plus a 56% surtax layer on that tax, or about 17.4%, well above the number in the bracket table.
What is the Ontario Health Premium?
It’s a charge that runs from $0 at $20,000 of taxable income or less up to $900, and the top amount applies above $200,600 according to the province. It doesn’t change your OHIP coverage. Most employees pay it through payroll deductions. The self-employed report it on Form ON428.
The premium climbs in small stages. In a couple of narrow bands, near $72,000 and $200,000, it rises 25 cents for each extra dollar of income for about $600 of income. That is why the marginal rate spikes for a moment in those ranges. It looks alarming on a chart and lasts a few hundred dollars of income.
What does provincial tax in Ontario cost at different incomes?
Here’s what the income tax calculator engine gives for Ontario alone, counting the provincial basic amount, the surtax and the premium. Federal tax is separate.
| Taxable income | Basic tax | Surtax | Premium | Ontario total |
|---|---|---|---|---|
| $60,000 | $2,625 | $0 | $600 | $3,225 |
| $100,000 | $6,285 | $93 | $750 | $7,128 |
| $150,000 | $11,708 | $2,712 | $750 | $15,170 |
| $250,000 | $24,168 | $9,690 | $900 | $34,758 |
Add the federal side and someone on $150,000 pays about $41,626 in all, roughly 27.8% of income. The marginal tax rate calculator shows the next-dollar rate. You’ll see it above the neat bracket rates near the surtax thresholds.
What do people get wrong about Ontario tax?
Most confusion comes from mixing up basic tax and total tax. A bracket rate isn’t your rate, and the surtax is not a bracket at all. Some also assume the premium is optional, which it isn’t for Ontario residents above the income line.
Our examples leave out credits beyond the basic amount, such as CPP and EI, the Ontario Low-income Individuals and Families Tax credit (the LIFT credit) and dividend credits. Your real bill can be lower. For a full estimate of the pay you’d keep, try the take-home pay calculator.
Ontario resets its figures each January. The 2027 table isn’t published yet, so these amounts are for 2026 only.
Where do the Ontario figures come from?
Rates, brackets and surtax thresholds are from the CRA’s 2026 payroll deductions tables for Ontario. The health premium range comes from the Government of Ontario’s health premium page. The dollar examples are our own calculations from those rules.
Frequently asked questions
What is the lowest Ontario tax rate in 2026?
5.05% on the first $53,891 of taxable income.
When do I pay the Ontario surtax?
When your basic Ontario tax, after credits, is over $5,818. It is 20% of the excess, plus 36% of the amount over $7,446.
How much is the Ontario Health Premium?
Nothing at $20,000 of taxable income or less, rising to $900 at the top.
Do I add Ontario tax to federal tax?
Yes. Both apply to the same taxable income, and each has its own brackets.
Why does my marginal rate jump in Ontario?
The surtax and the premium step up in narrow bands, so the next dollar can cost more than the bracket rate suggests.
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- Ontario income tax and sales tax in 2026
How Ontario income tax works in 2026: the five brackets, the surtax and health premium, the 13% HST, and the calculators that switch to Ontario
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.