# 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

Ontario is where more Canadians file than anywhere else, and its tax comes with two extras that surprise people at the bottom of the return. This page walks through them, then points you to the calculators that already know Ontario.

## What are the Ontario income tax brackets for 2026?

There are five. Ontario takes 5.05% of your first $53,891 of taxable income, 9.15% up to $107,785, 11.16% up to $150,000, 12.16% up to $220,000 and 13.16% on anything above that. The basic personal amount is $12,989, and provincial credits cut your tax at the lowest rate, 5.05%. The bracket figures match the [CRA page on 2026 tax rates and income brackets](https://www.canada.ca/en/revenue-agency/services/tax/individuals/tax-rates-brackets/current-year.html).

Here's what that looks like. Say you have $60,000 of taxable income in Ontario. The first $53,891 costs you $2,722, and the other $6,109 costs you $559. Take off the basic personal amount credit of $656 and your Ontario tax is about $2,625 before the health premium. You won't meet the surtax, because it only starts once your Ontario tax passes $5,818.

That's the provincial layer. The federal brackets sit on top of it, and the [limits page](https://tax-services.ca/tax-numbers) lists them.

## What are the Ontario surtax and health premium?

Once your Ontario tax passes $5,818, a surtax adds 20% of the amount above it. Past $7,446 it adds another 36% of the amount above that. That's why the top combined rate ends up higher than the 13.16% bracket suggests, and why a high earner in Ontario can pay more on the next dollar than the headline rate you'd read on a bracket table.

The Ontario Health Premium is separate. It's a charge on a sliding scale of taxable income, and it tops out at $900 a year.

## Will I ever see the surtax on a normal salary?

Probably not at $60,000, since your Ontario tax there is about $2,625, well under $5,818. The surtax is a high-income story. The health premium is the one most people run into, and it comes out of your return quietly, which is why it can catch you off guard at tax time.

## How does HST work in Ontario?

Ontario's 13% HST is the federal 5% plus an Ontario part of 8%, collected as one tax. A $100 item costs $113, and a $50 dinner bill carries $6.50 of HST. Add it to a price, or take it out of a total, with the [GST and HST calculator](https://tax-services.ca/calculators/sales-tax/gst-hst-calculator). The [sales tax guide](https://tax-services.ca/guides/gst-hst-pst) compares every province.

## Which calculators switch to Ontario?

The [income tax calculator](https://tax-services.ca/calculators/income-tax/income-tax-calculator) and the [take-home pay calculator](https://tax-services.ca/calculators/payroll-salary/take-home-pay-calculator) both include Ontario. Pick it from the list and the Ontario rates apply. Buying a home? The [land transfer tax calculator](https://tax-services.ca/calculators/property-transfer-tax/land-transfer-tax) estimates the tax and the first-time buyer rebate.

## Guides about Ontario

## What changed for 2026, and what is coming?

- Ontario indexed its brackets and personal amounts for 2026. The first two rates are 5.05% up to $53,891 and 9.15% up to $107,785. [Source](https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4032-payroll-deductions-tables/t4032on-jan/t4032on-january-general-information.html)
- The Ontario Health Premium did not change. It runs from $0 for taxable income up to $20,000 to a maximum of $900 above $200,000. [Source](https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4032-payroll-deductions-tables/t4032on-jan/t4032on-january-general-information.html)
- The Ontario Trillium Benefit for July 2026 to June 2027 pays up to $1,307 (ages 18 to 64) or $1,488 (65 and over) for the energy and property tax credit, plus up to $378 for the sales tax credit. [Source](https://www.ontario.ca/page/ontario-trillium-benefit)
- Proposed: The 2026 budget proposes cutting the non-eligible dividend tax credit rate from 2.9863% to 1.9863% from January 1, 2027. We found no change to Ontario personal income tax rates or brackets for 2027. [Source](https://budget.ontario.ca/2026/annex.html)

Checked on official pages in October 2026. Items marked announced or proposed are not final, so confirm them with the province before you plan around them.

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Source: https://tax-services.ca/provinces/ontario
Last updated: 2026-10-09
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