An Ontario resident in 2026 pays both federal and Ontario provincial income tax. The combined marginal rate ranges from 20.05% on the first dollar of taxable income above the basic personal amounts to 53.53% on income above $258,482. Ontario adds two unique items on top of its base provincial rates: a surtax of 20% (and a further 36%) on higher provincial tax amounts, and the Ontario Health Premium, which caps at $900 per year. These two add up to the highest marginal rate in Canada at the top end.
Quick answer: Combined federal + Ontario marginal rates for 2026 range from about 20% on low income to 53.53% above $258,482. The Ontario surtax (20% / 36% on provincial tax) and the Ontario Health Premium (up to $900/year) push the top rate higher than the headline 13.16% provincial rate suggests.
What this means: Your marginal rate is what each next dollar of income gets taxed at — useful for planning RRSP contributions, bonuses, and capital gains realization. Your average rate is much lower because the lower brackets always apply first.
What to do next: Calculate combined federal + Ontario tax based on your taxable income. Calculate Ontario tax →
Federal income tax brackets, 2026 tax year
The same federal brackets apply to residents of every province. The bottom federal rate was reduced from 15% to 14% effective July 2025 (Bill C-4); the 2026 tax year is the first full year at 14%.
| Taxable income range | 2026 federal rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
The federal basic personal amount (BPA) for 2026 is $16,452 for taxable income up to $181,440. The BPA is reduced gradually for incomes above that level, reaching $14,829 at incomes of $258,482 or more.
Ontario provincial brackets, 2026 tax year
Ontario’s lower three brackets are indexed annually (1.9% factor for 2026). The $150,000 and $220,000 thresholds are not indexed.
| Taxable income range | 2026 Ontario rate |
|---|---|
| Up to $52,886 | 5.05% |
| $52,886 to $105,775 | 9.15% |
| $105,775 to $150,000 | 11.16% |
| $150,000 to $220,000 | 12.16% |
| Over $220,000 | 13.16% |
Ontario’s 2026 basic personal amount (BPA) is $12,989. Combined with the federal BPA, an Ontario resident pays roughly zero income tax on the first $16,000-$17,000 of taxable income.
The Ontario surtax
The surtax is calculated on your Ontario tax payable, not your taxable income. For 2026:
- 20% surtax on Ontario tax in excess of approximately $5,818
- Additional 36% surtax on Ontario tax in excess of approximately $7,446 (so income in the top brackets faces a combined 56% surtax)
The surtax thresholds are indexed annually with the same 1.9% factor. Net effect: the headline 13.16% top Ontario rate becomes effectively 20.53% (13.16% × 1.56) once both surtaxes apply, pushing the top combined federal + Ontario marginal rate to 53.53%.
Ontario Health Premium
The Ontario Health Premium is a fixed dollar charge based on taxable income, paid annually with your tax return. The thresholds have not changed since the program began — they are not indexed.
| Taxable income | Annual premium |
|---|---|
| $0 – $20,000 | $0 |
| $20,001 – $36,000 | Up to $300 |
| $36,001 – $48,000 | $300 to $450 |
| $48,001 – $72,000 | $450 to $600 |
| $72,001 – $200,000 | $600 to $750 |
| Over $200,000 | Up to $900 |
Combined federal + Ontario marginal rates (2026 tax year)
| Taxable income range | Approximate combined marginal rate |
|---|---|
| Up to $52,886 | ~20.05% |
| $52,886 to $58,523 | ~24.15% |
| $58,523 to $105,775 | ~29.65% |
| $105,775 to $117,045 | ~31.48% |
| $117,045 to $150,000 | ~37.16% |
| $150,000 to $181,440 | ~38.16% (surtax bands begin) |
| $181,440 to $220,000 | ~44.97% |
| $220,000 to $258,482 | ~48.29% |
| Over $258,482 | 53.53% (top combined rate) |
These ranges exclude CPP, EI, and the Ontario Health Premium. Actual paycheque withholding adds those.
Worked example
Olivia earns $95,000 of taxable income in Ontario in 2026. Her tax (before non-refundable credits beyond BPA):
| Component | Calculation | Tax |
|---|---|---|
| Federal: first $58,523 at 14% | $8,193 | |
| Federal: $36,477 at 20.5% | $95,000 − $58,523 | $7,478 |
| Federal BPA credit (14% × $16,452) | −$2,303 | |
| Net federal tax | $13,368 | |
| Ontario: first $52,886 at 5.05% | $2,671 | |
| Ontario: $42,114 at 9.15% | $95,000 − $52,886 | $3,853 |
| Ontario BPA credit (5.05% × $12,989) | −$656 | |
| Net Ontario tax (before surtax) | $5,868 | |
| Surtax: 20% on Ontario tax above $5,818 | 20% × ($5,868 − $5,818) | ~$10 |
| Ontario Health Premium ($72,000-$200,000 band) | ~$600 | |
| Total federal + Ontario tax | ~$19,846 | |
| Average tax rate | $19,846 / $95,000 | ~20.9% |
| Marginal rate (next $1,000) | 29.65% |
Frequently asked questions
- What is the top combined income tax rate in Ontario for 2026?
- 53.53% on taxable income above $258,482. This combines the 33% federal rate with the 13.16% Ontario rate plus the 20% and 36% Ontario surtaxes.
- What is the Ontario basic personal amount in 2026?
- $12,989. Combined with the federal BPA of up to $16,452, Ontario residents pay approximately zero income tax on the first $16,000-$17,000 of taxable income.
- What is the Ontario surtax?
- An additional 20% on Ontario tax above approximately $5,818 in 2026, plus another 36% on Ontario tax above approximately $7,446. It is calculated on Ontario tax payable, not on taxable income.
- What is the Ontario Health Premium?
- A fixed-dollar amount added to your tax return, ranging from $0 (taxable income below $20,000) to $900 (above $200,000). The thresholds have not been changed since the program began and are not indexed.
- Are the Ontario tax brackets indexed?
- The first three thresholds ($52,886, $105,775, indexed by 1.9% for 2026) are indexed annually. The $150,000 and $220,000 thresholds are not indexed.
- How much is the new 14% federal rate worth to Ontario residents?
- Roughly $293 of tax savings per Ontario resident on the first $58,523 of taxable income, compared to the prior 15% rate, for the full 2026 tax year.
- Does the Ontario surtax apply to capital gains?
- Yes. The surtax applies to all Ontario tax payable, regardless of the income source. Capital gains are included in taxable income at their inclusion rate (50% on the first $250,000, higher above).