Take $80,000 of taxable income in 2026. The combined marginal rate in Ontario is 29.65%, made of 20.5% federal and 9.15% Ontario. So your next $1,000 brings $296.50 of tax. Enter your own income above to find your marginal rate.
What a marginal rate is
It is the tax on the next dollar you earn, not the rate on everything. Canada taxes income in steps. Only the slice above a bracket threshold is taxed at the higher rate, so crossing into a higher bracket never shrinks your take-home pay, even by a dollar.
How Ontario stacks on top
Federal and Ontario rates add together. Ontario also charges a surtax on its own tax, which pushes the effective Ontario rate above the bracket rate. Once the surtax applies, as it does at $100,000, the combined rate rises to 31.48%. The calculator folds it into the Ontario part.
The health premium quirk
The Ontario Health Premium rises in steps. Across a few narrow income bands it adds 25 cents to every extra dollar you earn, until the yearly cap is reached. The calculator measures the real tax on the next dollars, so those bands appear in the result.
Marginal rates by income
Under the result sits a table of marginal and average rates from $30,000 to $300,000. The marginal rate climbs from 19.05% around $30,000 to 53.53% at $300,000. The average rate rises far more slowly. That gap shows how progressive the system is, and why the top rate applies to so little of a typical income.
Putting your rate to use
Your rate tells you what a deduction is worth. A $1,000 RRSP contribution at 29.65% cuts your tax by about $296. It also shows how much of a bonus or side income stays with you, roughly 70 cents on the dollar at this level.
A bonus example
Say you earn $80,000 and get a $5,000 bonus. It is taxed at 29.65%, so you keep about $3,518. Your employer may withhold more at first, and if that was too much you get it back when you file. Know your marginal rate and the final figure is easy to predict.
Where the rate jumps
It steps up at the federal and Ontario bracket edges, and again where the surtax begins. The surtax is the big one. Above $258,482 the federal rate reaches 33%, and with Ontario’s 13.16% bracket plus the surtax the combined rate is 53.53%. The table shows how quickly those levels arrive.
Weighing a second job or overtime
The same number helps you judge overtime, a second job or a side business. It also explains why a deduction is worth more to the higher earner when two people have different rates. Spousal RRSPs and income splitting rules build on that idea.
Benefits that shrink as you earn
Some income-tested benefits fall as income rises, such as the Canada Child Benefit and the GST/HST credit. That can lift your effective rate on extra income above the figure shown here. If you receive them, check how a raise changes them before you decide.
Where to go next
For your total tax, use the income tax calculator. To see how a contribution changes your refund, try the tax refund calculator. Investment income has its own tool, the capital gains tax calculator.
Frequently asked questions
What is the marginal tax rate?
The tax rate on your next dollar of income.
What is the marginal rate at $80,000 in Ontario?
29.65% in 2026: 20.5% federal plus 9.15% Ontario.
Does a raise ever lower my take-home pay?
No. Only the extra income is taxed at the higher rate.
Why does the rate jump around $100,000?
Ontario's surtax begins to apply, which raises the Ontario part.
How does an RRSP help?
Each dollar you contribute reduces tax at your marginal rate.
Is the marginal rate the same as the average rate?
No. The average rate is total tax divided by income.
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.