Updated Checked by the Tax-Services.ca editorial team How we check
If you live in Toronto, the income tax on your return is federal plus Ontario. The city doesn’t add a third layer. On $60,000 of employment income that comes to $8,320.50, or 13.9%, and you also pay 13% HST on most purchases.
How is income tax worked out for people in Toronto?
You file one return with the CRA. The provincial part depends on the province where you lived on December 31, so a move in December changes the whole year. People who live in Toronto get Ontario’s rates, and both layers are progressive: each slice of income is taxed at its own rate, and only the part above a line pays the higher one.
The table shows the 2026 brackets, which match the federal and Ontario tables on the CRA’s 2026 tax rates and brackets page. Ontario adds a surtax once its basic tax passes about $5,800, plus a health premium that grows with income. Both nudge the real rate above what the table suggests for higher earners.
| Slice of taxable income | Federal rate | Ontario rate |
|---|---|---|
| Up to $53,891 (Ontario) or $58,523 (federal) | 14% | 5.05% |
| Up to $107,785 (Ontario) or $117,045 (federal) | 20.5% | 9.15% |
| Up to $150,000 (Ontario) or $181,440 (federal) | 26% | 11.16% |
| Up to $220,000 (Ontario) or $258,482 (federal) | 29% | 12.16% |
| Above those amounts | 33% | 13.16% |
Notice that the federal and Ontario lines don’t match up on the same income. Someone at $80,000 is in the second federal slice and the second Ontario slice, but at $110,000 they are still in the second federal slice while already in the third Ontario one.
What does tax in Toronto look like at three salaries?
Take a single person with only employment income. On $40,000, the income tax calculator gives $4,363 of tax, an average of 10.9%. At $60,000 it’s $8,320.50, and at $100,000 it’s $20,024.35, or 20.0%.
CPP and EI come on top of that: $2,823.75 at $40,000, $4,339.75 at $60,000 and $5,769.52 at $100,000. What’s left is $32,813.54, $47,339.75 and $74,206.13. Tax takes a bigger bite as pay rises, but you still keep more.
Say Aisha rents in Scarborough and earns $60,000. After tax, CPP and EI she’s left with $47,339.75 a year, or roughly $3,945 a month. That’s the number her landlord and grocery store care about, not the gross salary.
For a paycheque view, the take-home pay calculator shows the same picture per pay period. To see the rate on your next dollar of raise, use the marginal tax rate calculator.
Do you pay different income tax in different parts of Toronto?
No. A condo downtown, a bungalow in Etobicoke and a flat in North York all sit under the same federal and Ontario income tax. What changes by address is the city’s property tax bill and charges tied to the building, not your income tax.
What about HST and property tax in Toronto?
Ontario’s HST is 13%, made of the 5% federal GST and an 8% provincial share. A $100 taxable item costs $113. Not every item is taxed, so check first, then let the GST and HST calculator do the sum.
Property tax is a different animal. Your bill is the city’s rate multiplied by your home’s assessed value. Copy the rate from the bill into the property tax calculator and you get a yearly and a monthly figure.
Is buying a home in Toronto taxed twice?
Sort of. On top of Ontario’s land transfer tax, Toronto charges its own municipal land transfer tax. On a $900,000 purchase the land transfer tax calculator shows $14,475 to Ontario and $14,475 to the city. That’s $28,950 at closing, or 3.22% of the price, and it’s due on top of your down payment.
The city’s scale covers homes holding one or two single-family residences. Buyers can tick the first-time box in the tool, so try it before you budget.
Where do tax estimates go wrong?
Check these before you trust a number.
The biggest slip is treating your pay stub as your final tax. Employers hold back a guess, and your return settles the real amount. Others: forgetting that the calculator counts only the basic credits, so a tuition or donation claim will lower your tax; assuming your marginal rate applies to all your income when it only touches the top slice; and counting on a rate near $200,000 without checking, since the health premium makes the jump there look steeper than the brackets.
How we checked the figures
Federal and Ontario brackets, the basic amounts and the Ontario surtax come from the Canada Revenue Agency‘s 2026 rates page and its payroll tables, and sales tax from the CRA’s rate table. The Ontario Health Premium steps are only partly confirmed, so treat estimates for higher incomes as close, not exact. This is an independent guide, separate from any government body.
Frequently asked questions
Is there a separate Toronto income tax?
No. You file one return, and the tax on it is federal plus Ontario, based on the province you lived in on December 31.
How much income tax do you pay on $60,000 in Toronto?
About $8,320.50 in federal and Ontario tax, an average of 13.9%, before CPP and EI.
What is the sales tax in Toronto?
It is 13% HST, made up of 5% federal GST and an 8% Ontario share.
Does Toronto have its own land transfer tax?
Yes. On a $900,000 home the calculator shows $14,475 to Ontario plus $14,475 to the city.
Where do I find my property tax rate?
It is printed on your city property tax bill, and you can enter it in the property tax calculator.
- 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