Ontario income tax and sales tax in 2026

Updated October 1, 2026 · Checked by the Tax-Services.ca editorial team · How we check

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.

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 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. The sales tax guide compares every province.

Which calculators switch to Ontario?

The income tax calculator and the 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 estimates the tax and the first-time buyer rebate.

Guides about Ontario

• What you owe on lottery winnings in Canada

  A lottery prize is tax free, but interest on it is not. See the tax on $20,000 of interest from a $500,000 win and how a TFSA shelters it

• Ontario Regional Opportunities Investment Tax Credit

  Private corporations get 10% back on building spending in designated regions, up to $45,000 a year, but Ontario shows the credit ending soon

• $150,000 After Tax in Ontario: Line by Line

  On $150,000 in Ontario you keep $104,320 a year after tax, CPP and EI, with the marginal rate at 43.41%. Here is each line.

• Ontario Provincial Income Tax: Brackets and Examples

  The provincial rate in Ontario is 5.05% to 13.16% for 2026, plus a surtax and a health premium of up to $900. See what $80,000 pays

• $200,000 in Ontario: Weekly, Biweekly and Monthly Pay

  A $200,000 salary in Ontario nets $131,278 a year: $5,049 biweekly or $10,940 monthly. See pay for each pay schedule and why 26 cheques differ.

• Capital Gains on Gifted Property in Canada

  Gifting property counts as a sale at market value, so capital gains hit the giver. See the spouse and home exemptions and a $400,000 example

• $140,000 in Ontario: What It Pays Per Hour After Tax

  A $140,000 Ontario salary is $67.31 an hour gross and $47.43 net on a 40-hour week, or $98,661 a year after tax.

• Taxes on Inheritance in Canada: Who Pays What

  No tax bill comes with what you inherit, yet the estate pays taxes on inheritance first. See RRSP hits, cottage gains and probate by province

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
• 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
• 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
• 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

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.

Frequently asked questions

Does Ontario have its own tax return?

No. You file one return with the CRA, and it includes your Ontario tax. Quebec is the only province with a separate return.

What is the HST rate in Ontario?

13%. That is the federal 5% plus an Ontario part of 8%, collected as one tax.

What is the Ontario surtax?

A surtax is an extra charge on Ontario tax above a set amount. For 2026 it is 20% of Ontario tax above $5,818, plus a further 36% of the tax above $7,446.

Where do these numbers come from?

From the CRA tax rates page and the CRA payroll tables for Ontario, checked on September 29, 2026.