Ontario Income Tax Calculator

Calculate your Ontario income tax with provincial rates from 5.05% to 13.16%. Includes the Ontario surtax, Ontario Trillium Benefit, and combined federal-provincial brackets.

Ontario’s provincial income tax uses a progressive bracket system with rates ranging from 5.05% on the first bracket to 13.16% on income above the top threshold. Ontario is also one of the few provinces that adds a surtax — an additional tax on top of the provincial tax itself — which effectively increases the marginal rate for higher-income earners beyond the stated bracket rate.

The Ontario surtax adds 20% of basic provincial tax above a lower threshold, plus 36% of basic provincial tax above a higher threshold. Combined with the federal tax, Ontario’s top combined marginal rate exceeds 53% for the highest income bracket. Understanding the surtax is important for Ontario residents doing tax planning, as it creates effective marginal rates that are higher than the posted bracket rates suggest.

Ontario Tax Brackets and the Surtax

Ontario’s provincial tax brackets start at 5.05% for income within the first bracket, rising through 9.15%, 11.16%, and 12.16% at middle brackets, to 13.16% on income above the highest threshold. These brackets are indexed annually for inflation.

The Ontario surtax applies when your basic provincial tax exceeds specified thresholds. You pay 20% of basic provincial tax over the lower surtax threshold, plus 36% of basic provincial tax over the higher surtax threshold. This effectively increases the marginal tax rate for higher-income Ontario residents. The surtax thresholds are also indexed for inflation. The combined effect of brackets plus surtax makes Ontario’s effective top marginal provincial rate higher than the stated 13.16%.

Ontario Trillium Benefit

The Ontario Trillium Benefit (OTB) combines three separate credits into a single payment: the Ontario Energy and Property Tax Credit, the Northern Ontario Energy Credit, and the Ontario Sales Tax Credit. The OTB is income-tested and provides meaningful support to lower and moderate-income Ontario residents.

The property tax component provides a credit based on property tax paid (or rent, with a formula converting rent to deemed property tax). The energy component helps offset energy costs, with a higher amount available to Northern Ontario residents. The sales tax credit provides relief for the provincial portion of the HST. The OTB is calculated when filing your income tax return and is typically paid in monthly installments throughout the following year.

Key Facts

  • Ontario provincial tax rates range from 5.05% to 13.16%, with the surtax pushing effective rates higher.
  • The Ontario surtax adds 20% of basic provincial tax above a lower threshold, plus 36% above a higher threshold.
  • Combined federal + Ontario top marginal rate exceeds 53% for the highest income bracket.
  • The Ontario Trillium Benefit provides income-tested relief through energy, property tax, and sales tax credits.
  • Ontario uses the HST (13%), combining 5% federal GST and 8% provincial PST into a single tax.

FAQ

What is the Ontario surtax and how does it work?

The Ontario surtax is an additional tax levied on top of your basic provincial income tax. It kicks in when your basic Ontario tax exceeds a threshold: you pay 20% of basic tax above a lower threshold, plus 36% of basic tax above a higher threshold. This effectively increases the marginal tax rate for higher-income earners beyond what the bracket rates alone indicate. Use the calculator above to see the impact on your specific income.

What is the combined top marginal tax rate in Ontario?

The combined federal and Ontario top marginal tax rate exceeds 53% for the highest income bracket. This includes the federal top rate plus Ontario’s top bracket rate of 13.16% plus the surtax effect. For dividend income and capital gains, the effective rates differ due to the dividend tax credit and the capital gains inclusion rate.

How does the Ontario Trillium Benefit work?

The Ontario Trillium Benefit (OTB) is an income-tested benefit that combines three credits: the Ontario Energy and Property Tax Credit, the Northern Ontario Energy Credit, and the Ontario Sales Tax Credit. You apply when filing your income tax return. If eligible, payments are made monthly throughout the following year. The amount depends on your income, family size, property tax or rent paid, and energy costs.

Is Ontario income tax higher than other provinces?

Ontario’s income tax rates are in the middle-to-upper range of Canadian provinces. They are higher than Alberta (which starts at a flat 10%) and BC (which starts at 5.06%), but lower than Quebec’s rates (14%–25.75% before the federal abatement). Nova Scotia and the other Atlantic provinces generally have higher combined rates than Ontario. The surtax makes Ontario’s effective rates higher than the bracket rates alone suggest.

Updated March 2026. Information on this page is provided for educational purposes only. Tax rules, rates, and government programs may change — verify details with the CRA or a qualified financial advisor.