On $80,000 of taxable income in 2026, an Ontario resident pays about $15,497 in income tax. Of that, $10,293 is federal and $5,205 is Ontario, including the $750 health premium. The average rate is 19.37% and the marginal rate is 29.65%. Enter your own income above to see yours.
How the tax is worked out
Canada taxes income in steps. At both the federal and the Ontario level, each rate applies only to the slice of income inside its bracket. The federal rates for 2026 are 14%, 20.5%, 26%, 29% and 33%, while Ontario’s run from 5.05% to 13.16%. The basic personal amount then reduces the tax.
Ontario extras
Ontario adds two. The surtax kicks in once basic Ontario tax passes $5,818, at 20%, and again over $7,446, at 36%. Then there is the Ontario Health Premium, a yearly amount of up to $900, based on taxable income. Both are included. The surtax shows up only when you owe it.
Average and marginal rates
Total tax divided by income gives the average rate. The marginal rate is what you pay on your next dollar. At $80,000 they are 19.37% and 29.65%. That gap is why a raise never leaves you with less money, even if it pushes you into a higher bracket.
What taxable income means
Enter taxable income, not salary. That is what remains after deductions such as RRSP contributions, union dues and child care costs. Only know your gross salary? The tax refund calculator starts from your pay slip and includes CPP and EI.
What this estimate leaves out
Only the basic personal amount is used, and nothing else. Credits for tuition, medical expenses, donations and the Canada employment amount are missing, so your real bill may be lower. Ontario also has a low-income reduction that is not modeled. Quebec residents file a separate provincial return and are not covered.
A second example
At $150,000 of taxable income, total tax is about $41,626, an average rate of 27.75%. The surtax adds $2,712 of that. At $60,000 the tax is $9,417 and the average rate is 15.70%. Average rates climb with income, though more slowly than the marginal rate does, and the difference widens as brackets stack up.
Ways to lower the bill
An RRSP contribution lowers taxable income, and so do child care expenses, union dues and moving costs for a new job. Claim every credit you qualify for. Tuition, medical expenses and charitable donations all count. Keep your receipts, since the CRA may ask to see them months or even years later.
Filing dates
Most individuals must file by April 30. Self-employed people have until June 15, but any tax owing is still due April 30. Late filing costs you. It brings a penalty and interest. If you cannot pay in full, file on time anyway and contact the CRA about a payment plan.
Where to go next
To learn the tax on each extra dollar, try the marginal tax rate calculator. The tax refund calculator shows how an RRSP contribution changes your bill. Selling an investment? The capital gains tax calculator adds the gain on top of your income.
Frequently asked questions
How much income tax do I pay on $80,000 in Ontario?
About $15,497 in 2026, before credits other than the basic personal amount.
What is the Ontario surtax?
An extra tax of 20% and 36% on Ontario tax above $5,818 and $7,446.
What is the Ontario Health Premium?
A yearly charge of up to $900, based on taxable income.
Is this the tax I will owe?
It is an estimate that uses the basic personal amount only. Other credits may lower it.
What is the difference between average and marginal rate?
Average is total tax over income. Marginal is the tax on the next dollar.
Does it work for Quebec?
No. Quebec residents file a separate provincial return.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.