Ontario Income Tax Guide: 2026 Rates and How to File

Ontarians pay two income taxes on one return: federal tax and Ontario tax. For 2026 the federal rates run from 14% to 33% and the Ontario rates from 5.05% to 13.16%, with an Ontario surtax and a health premium on top for many people. Most returns are due on April 30 of the following year, and filing online is the fastest way to get a refund. This guide covers the rates, the credits that matter most and the steps to file.

Federal and Ontario tax brackets for 2026

Canada uses progressive rates. Each slice of your taxable income is taxed at the rate for that slice, not at one rate across the whole amount. The Canada Revenue Agency (CRA) publishes these federal brackets for 2026.

14% on the first $58,523 of taxable income
20.5% from $58,523 to $117,045
26% from $117,045 to $181,440
29% from $181,440 to $258,482
33% on income above $258,482

Ontario has its own five brackets, and the CRA collects that tax on the same return. They are 5.05% up to $53,891, 9.15% up to $107,785, 11.16% up to $150,000, 12.16% up to $220,000 and 13.16% above that. Add the two sets together and a person in the second federal and second Ontario bracket faces a combined 29.65% on the next dollar earned.

The income tax calculator uses these same figures, so you can test your own income once you have read the example below.

Ontario surtax and the health premium

Two extra charges catch people by surprise. Both are added to Ontario tax, and neither shows up in the bracket table.

The surtax applies to your basic Ontario tax after credits, not to income. When that basic tax is above $5,818, the surtax is 20% of the amount over $5,818. Above $7,446 an extra 36% applies to the amount over that second line. For someone who claims only the basic personal amount, the surtax starts at roughly $95,000 of taxable income.

The Ontario Health Premium is a flat dollar amount that rises in steps with taxable income. It is $0 at $20,000 or less and reaches $900 above $200,600. The province says it is not linked to OHIP and does not change your right to health care. Employers normally deduct it from pay, and it also appears on your return.

Together, these two items push the top combined marginal rate well above the sum of the brackets. The marginal tax rate calculator includes both, which is why its numbers are higher than a quick addition of the tables would suggest.

Marginal rate versus average rate

The marginal rate is the tax on your next dollar of income. The average rate is your total tax divided by your income. They differ because the lower slices of your income were taxed at lower rates, and because credits reduce the total.

Here is a worked example with taxable income of $80,000 and only the basic personal amount claimed, the same setup the site calculator uses. Federal tax comes to $10,292.73. Ontario basic tax is $4,454.52. There is no surtax, because $4,454.52 is under $5,818. The health premium is $750. The total is $15,497.25.

Divide $15,497.25 by $80,000 and the average rate is 19.37%. The marginal rate at that income is 29.65%, which is 20.5% federal plus 9.15% Ontario. So an extra $1,000 of taxable income costs $296.50 in tax, while the average rate suggests only $193.70.

At $130,000 the picture changes. Federal tax is $21,255.25 and Ontario basic tax is $9,476.05. The surtax adds $1,462.43 and the premium adds $750, for a total of $32,943.72. Spread across the whole income, the rate is 25.34%, but the marginal rate has jumped to 43.41%, because the surtax and a higher bracket both bite on the next dollar.

For an RRSP contribution or a bonus, the marginal rate is the one that counts. Averaged over all your income, the rate tells you what share goes to tax overall.

The basic personal amount and payroll deductions

Every resident gets a basic personal amount, a slice of income that produces no tax. For 2026 the federal maximum is $16,452, shrinking to $14,829 for people with income above $181,440, and reaching that minimum at $258,482. Ontario’s basic personal amount is $12,989. Each amount is multiplied by the lowest rate in the province or federally, and the result comes off your tax. The federal rate applied to credits is 14% for 2026, and Ontario’s is 5.05%.

Payroll deductions work in a similar way. Employees pay Canada Pension Plan (CPP) contributions of 5.95% on earnings between $3,500 and the $74,600 yearly maximum, up to $4,230.45. A second CPP tier charges 4% on earnings between $74,600 and $85,000, up to $416. Employment Insurance (EI) premiums are 1.63% on insurable earnings up to $68,900, a maximum of $1,123.07.

The base part of CPP and the EI premiums count as credits. The enhanced part of CPP and the second tier are deductions from income. Your T4 slip shows what was withheld, and tax software handles the split. To see the effect on a paycheque, try the take-home pay calculator.

RRSP contributions

A Registered Retirement Savings Plan contribution is a deduction, so it lowers taxable income before the brackets are applied. Your deduction limit is 18% of last year’s earned income up to a yearly maximum, less any pension adjustment. For 2026 the maximum is $33,810. Your notice of assessment shows your personal limit for the next year.

The value of the deduction depends on your marginal rate. Using the example above, a $1,000 contribution at $80,000 of income cuts the tax bill by $296.50. At a lower income the saving is smaller. Contributions made in the first 60 days of a year can be claimed on the previous year’s return. For the 2025 return that deadline was March 2, 2026.

The RRSP calculator shows the refund and the long-term growth side by side.

Medical, tuition and other credits

Credits reduce tax directly, rather than reducing income. Most are non-refundable, meaning they can bring your tax to zero but will not produce a refund by themselves.

Medical expenses. You can claim eligible costs for yourself, your spouse or common-law partner and dependent children under 18. The first slice is subtracted before you claim: the lesser of 3% of your net income or a fixed dollar amount. For the 2025 return that amount was $2,834. A person with net income of $55,000 subtracts $1,650, since 3% is lower than $2,834.

Tuition. Your school issues a form T2202, and the federal tuition amount is claimed on your return. A student can transfer unused tuition to a parent, spouse or grandparent, but the limit on the transfer is $5,000 minus the amount the student used. Ontario dropped its own tuition and education credits in 2017. If you lived in Ontario on December 31, 2017, unused amounts carried forward from earlier years may still be claimed.

Other common claims include the Canada employment amount, the age amount, the disability amount and charitable donations. The tax deductions and credits calculator estimates several of them. Benefits paid on the basis of your return, such as the Ontario Trillium Benefit, are covered in the Ontario Trillium Benefit calculator, and more resources sit in the tax section.

Filing deadlines and penalties

For the 2025 tax year the filing deadline was April 30, 2026. The pattern is the same each year: April 30 for most people, and June 15 for you or your spouse if either one is self-employed. The payment deadline stays at April 30 even when the filing date is June 15. Interest on any unpaid balance starts on May 1.

A late return with a balance owing brings a penalty of 5% of the balance, plus 1% of the balance for each full month the return stays late, up to 12 months. If you were late in earlier years, the CRA can charge more. There is no late-filing penalty when you are owed a refund, but filing late can delay benefits that depend on your return.

People who missed a deadline because of an extraordinary circumstance can ask for relief. The late filing penalty relief guide explains how, and the guide to CRA notices and unfiled returns helps if a letter has already arrived.

How to file: NETFILE, software and free help

Most people file with certified tax software through NETFILE, the CRA’s electronic service. The steps are short. Choose software from the CRA’s list of certified products, enter your slips and deductions, get a NETFILE access code from the software and send the return. Keep your receipts, because the CRA can ask for them later.

NETFILE opened on February 23, 2026, and stays open until January 29, 2027, for tax years 2018 to 2025. That means a late return for a recent year can still be sent online. Professional preparers use a different service called EFILE.

The CRA lists free certified software on its website, and it also runs the Community Volunteer Income Tax Program (CVITP). Community organizations host free tax clinics where volunteers complete returns for people with a modest income and a simple tax situation. The income limit depends on family size and can be adjusted by each host. Clinics generally run between February and April, and some stay open all year. The CRA has a search tool to find a clinic near you.

Paper filing is still allowed, though it is slower. Getting into CRA My Account beforehand also helps, and the CRA My Account guide covers sign-in, lockouts and tracking.

After you file: assessment and refund

The CRA sends a notice of assessment once it has processed the return. It summarizes the amounts calculated, shows any refund or balance and lists your RRSP deduction limit for the next year. You can see it in My Account straight away, or ask for a paper copy by phone. If you disagree, a notice of objection generally has to be filed within 90 days of the notice date.

For timing, the CRA says online returns are usually processed within about two weeks, and paper returns take longer. A refund arrives faster with direct deposit. The CRA can also keep a refund to cover other amounts you owe, such as a student loan or an earlier tax balance. Current processing times are on the CRA website.

Keep your documents and a copy of the return for at least six years. The CRA can ask for supporting records later, and you can normally request a change to a return for a tax year that ended in the last 10 calendar years. Before you file, the tax refund calculator gives a quick estimate of what to expect.

Common mistakes

Forgetting a slip is the most frequent one. The CRA receives copies of T4, T5 and other slips, and missing income is usually spotted by matching. Check My Account for slips before you send the return.

Another error is paying attention only to the average rate. A raise or a bonus is taxed at your marginal rate, and in Ontario that rate can rise sharply once the surtax begins.

Some people also file on time but do not pay. The balance is still due on April 30, and interest starts the next day. Self-employed filers who use the June 15 date run into this often. The self-employed tax calculator can help you set money aside.

Claims without receipts cause trouble too. Medical, donation and tuition claims should be backed by paper or a saved file. And wrong bank details on file mean a refund goes missing, so update direct deposit in My Account before you file.

The tax calculators hub lists every estimate tool on the site, and the figures in this guide are the same ones they use.

Common questions

What are the Ontario income tax rates for 2026?

Ontario rates are 5.05% up to $53,891, 9.15% up to $107,785, 11.16% up to $150,000, 12.16% up to $220,000 and 13.16% above that. A surtax and the Ontario Health Premium can apply on top.

Sources

Last reviewed: September 29, 2026. Figures come from the official sources listed above. How we check the numbers and our editorial policy.

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Income Tax in Ontario: Rates, Credits and Filing