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Taxes in Ontario come in layers. On income you pay federal tax and Ontario tax on one return, with Ontario’s rates running from 5.05% to 13.16%. On purchases you pay 13% HST. Own a home and there’s a property tax bill from your city on top. On a $60,000 salary, income tax alone comes to about $8,321.
What are the Ontario income tax brackets?
The Canada Revenue Agency’s 2026 page lists five Ontario brackets. Each rate applies only to the slice of income inside that band, not to everything you earn.
| Taxable income slice | Ontario rate |
|---|---|
| $0 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% |
Federal tax is calculated separately on the same income, from 14% up to 33%. You don’t file twice. One return covers both, and the province’s share is worked out on the same form.
How do the brackets add up on a real salary?
Take $60,000 of taxable income. The first $53,891 is taxed at 5.05%, which is $2,721.50. The remaining $6,109 is taxed at 9.15%, which is $558.97. Together that’s about $3,280 of Ontario tax before credits. The $2,982 further down is lower even though it includes the $600 health premium, because the basic credits take a bite out of the bracket tax first. It’s a nice way to see why you can’t read a bracket table as a bill. Our Ontario page collects the province’s rates in one place.
What is the Ontario Health Premium?
It’s a charge that sits outside the brackets. Ontario says it runs from $0 when taxable income is $20,000 or less up to $900 when income is above $200,600. In between it climbs in steps, and the province publishes the full schedule as open data.
At $60,000 the engine puts it at $600. People who compare provinces often miss it, and it’s a good reason your Ontario “rate” looks higher than the brackets suggest.
What does $60,000 look like in Ontario?
We ran a single employee through the income tax calculator with no deductions and only the basic credits. Federal tax is about $5,338. Ontario tax, including the $600 premium, is about $2,982. That’s $8,321 in all, or 14% of the salary.
CPP and EI take another $4,340. What’s left is about $47,340, or roughly $3,945 a month before any RRSP or benefits. Try your own number in the take-home pay calculator.
Your next dollar is taxed at about 29.65%, which is the federal 20.5% plus Ontario’s 9.15%. The marginal tax rate calculator shows this for other incomes, though it reads oddly high near $200,000 because of the premium step.
What about HST and property tax?
Ontario’s HST is 13%, made up of the 5% federal part and an 8% provincial part. A $200 purchase costs $226. Basic groceries are zero-rated across Canada, so the till doesn’t charge anything on them. Use the GST/HST calculator for the rest.
Property tax is set by your municipality, and it changes from city to city, so there’s no Ontario rate to quote. The property tax calculator is the place to start if you’re weighing a purchase. Buying? Ontario also charges a land transfer tax, which the land transfer tax calculator handles.
What changes when you buy or move in Ontario?
A first home purchase brings in land transfer tax and legal fees, and a move from another province can change which rate you pay for part of the year. Picture Aisha, who moves from Alberta to Toronto in June: which province’s tax she owes for the year turns on the CRA’s residency rules, so she’d check those before she files and not assume. Buying a home is its own topic, and our page on buying or selling a home lays out what changes for your taxes.
What could throw an estimate off?
Credits and deductions you don’t enter, mostly. Ontario also has a surtax in some years for higher earners, and our calculator applies it. But the CRA rates page we read doesn’t mention a surtax, so check the Ontario form ON428 for the current figures before you rely on a high-income number.
The estimate also treats you as a single person on employment income. Add a spouse, dividends or self-employment and the picture changes.
If you moved provinces during the year or split time between two, or you earn income that comes with its own credit, such as eligible dividends, the honest answer is that a quick tool gets you to within a few hundred dollars and no closer, so use the numbers for planning at tax time and the return itself for the final figure.
What this page is based on
Bracket rates come from the Canada Revenue Agency‘s 2026 tax rates page, and the health premium range from the Government of Ontario. The HST rate comes from the CRA’s GST/HST pages. The $60,000 example was run by us. We couldn’t verify the health premium steps between $20,000 and $200,600 on a page, so we quote only the two ends. This site isn’t linked to the CRA or the Ontario government.
Frequently asked questions
What are the Ontario income tax rates?
For 2026 the CRA lists 5.05%, 9.15%, 11.16%, 12.16% and 13.16%, applied to slices of taxable income.
How much is the Ontario HST?
13%, made up of 5% federal and 8% provincial. Basic groceries are zero-rated.
What is the Ontario Health Premium?
A charge based on taxable income: $0 at $20,000 or less, up to $900 above $200,600.
How much tax do you pay on $60,000 in Ontario?
About $8,321 in income tax by our calculator, plus $4,340 in CPP and EI, leaving around $47,340.
Who sets Ontario property tax?
Your municipality does, so the rate changes from city to city.
- 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
- 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