Ontario Income Tax Calculator 2026
Calculate your take-home pay, federal + Ontario provincial income tax, CPP1, CPP2, and EI for the 2026 tax year. Free, no signup required.
Enter your gross income above to see your 2026 Ontario (Federal + Provincial) tax breakdown instantly.
Quick example
A salaried employee in Ontario earning $80,000 in 2026 pays approximately $21,108 in federal + Ontario income tax, CPP, and EI — taking home $58,892. That is an effective tax rate of 26.4% and a marginal rate of 33.7%.
How Ontario income tax works in 2026
Ontario residents pay two separate income taxes on the same gross income: federal income tax collected by the Canada Revenue Agency (CRA), and Ontario provincial income tax administered alongside the federal return. Both are filed on a single T1 General return — but they are distinct calculations with separate brackets, credits, and thresholds.
The federal Basic Personal Amount (BPA) for 2026 is $16,452, which reduces your federal tax by approximately $2,303 (14% of the BPA). The federal BPA is phased out for high earners between $181,440 and $258,482. Ontario has its own Basic Personal Amount of $12,989, reducing provincial tax by approximately $656 (5.05% of the provincial BPA). There is no phase-out on the Ontario BPA.
The Ontario surtax is an additional provincial levy applied on top of basic Ontario tax. For 2026: if your basic Ontario tax (after the BPA credit) exceeds $5,818, a 20% surtax applies to the excess. If it exceeds $7,446, a further 36% additional surtax applies. The cumulative effect at the upper threshold is significant — effectively adding up to 56% of marginal provincial tax for high earners. At $80,000 gross income, most Ontario taxpayers fall below the $5,818 surtax threshold.
The Ontario Health Premium (OHP) is a graduated levy on gross income, ranging from $0 (under $20,000) to a maximum of $900 (above $200,600). At $80,000, the OHP is $750. The OHP is technically not an income tax but is collected as part of your tax return.
CPP and EI apply to all Ontario (and Canadian) employees equally. CPP1 is 5.95% on earnings between $3,500 and $74,600, capped at $4,230. CPP2 — a second enhanced tier — applies at 4% on earnings between $74,600 and $85,000, with a maximum of $416. EI premiums are 1.63% on insurable earnings up to $68,900, capped at $1,123.
Ontario also offers several provincial tax credits not modelled here: the Ontario Trillium Benefit (combining energy, property, and sales tax credits — valuable for renters and lower-income earners), the Ontario Tax Reduction (which eliminates provincial tax for low-income earners), and senior and disability credits. These are excluded from v1 of this calculator.
These rates and thresholds are sourced from ontario.ca and the CRA (canada.ca).
Ontario tax brackets for 2026
Federal and Ontario provincial brackets are calculated separately on the same gross income.
Ontario provincial
| Rate | Income |
|---|---|
| 5.05% | Up to $52,886 |
| 9.15% | $52,886 – $105,775 |
| 11.16% | $105,775 – $150,000 |
| 12.16% | $150,000 – $220,000 |
| 13.16% | Over $220,000 |
Ontario BPA credit: CA$12,989 × 5.05% = ~CA$656 off provincial tax.
Federal
| Rate | Income |
|---|---|
| 14.0% | Up to $58,523 |
| 20.5% | $58,523 – $117,045 |
| 26.0% | $117,045 – $181,440 |
| 29.0% | $181,440 – $258,482 |
| 33.0% | Over $258,482 |
Federal BPA credit: CA$16,452 × 14% = ~CA$2,303 off federal tax.
Ontario Surtax 2026
+ 20% on basic Ontario tax exceeding CA$5,818 · + 36% additional on basic Ontario tax exceeding CA$7,446
Take-home pay at common Ontario salaries (2026)
Salaried employee, standard deductions only (no RRSP). Includes federal + Ontario income tax, CPP1, CPP2, EI, and Ontario Health Premium.
| Gross salary | Take-home | Total tax + deductions | Effective rate | Marginal rate |
|---|---|---|---|---|
| $40,000 | $32,065 | $7,935 | 19.8% | 26.6% |
| $60,000 | $46,202 | $13,798 | 23.0% | 37.2% |
| $73,000 | $54,279 | $18,721 | 25.6% | 35.6% |
| $80,000 | $58,892 | $21,108 | 26.4% | 33.7% |
| $100,000 | $72,660 | $27,340 | 27.3% | 31.5% |
| $150,000 | $102,478 | $47,522 | 31.7% | 45.0% |
| $200,000 | $129,381 | $70,619 | 35.3% | 73.3% |
All figures in Canadian dollars. Computed from 2026 rates published by the CRA and ontario.ca. Not accounting for RRSP deductions, Ontario Trillium Benefit, or other credits.
Worked example: CA$80,000 in Ontario (2026)
Step-by-step calculation for a salaried Ontario employee earning CA$80,000. Gross income → take-home.
Step 1 — Federal income tax
Step 2 — Ontario provincial income tax
Step 3 — CPP and EI
Step 4 — Ontario Health Premium
Gross income
$80,000
Total deductions
$21,108
Take-home
$58,892
Effective rate: 26.4% · Marginal rate: 33.7%
How Ontario compares to other Canadian provinces
Ontario's combined federal + provincial tax burden sits in the middle of the Canadian range. At CA$80,000 gross income, the approximate effective rates (income tax + CPP + EI, 2026) differ by province:
- Alberta: Generally lower provincial rates; no provincial surtax; typically the lowest combined rate among major provinces.
- British Columbia: Similar to Ontario at most income levels; top provincial rate 20.5%.
- Ontario: 5.05%–13.16% provincial brackets + surtax above ~$92,000 effective income.
- Quebec: Higher provincial rates (14%–25.75%) but federal tax is reduced via a 16.5% Quebec Abatement, making direct comparisons complex.
- Atlantic provinces (NS, NB, PEI, NL): Generally higher combined rates than Ontario.
Tax Atlas currently models federal + Ontario provincial tax specifically. Province-specific calculators for British Columbia, Alberta, Quebec, and others are planned — the Ontario page is the first in that series.
Frequently asked questions
- Is Ontario income tax higher or lower than other provinces?
- Ontario sits in the middle of the Canadian provincial range. British Columbia and Saskatchewan are slightly lower at equivalent incomes; Quebec is higher (though Quebec residents receive some federal tax abatements). Alberta has no provincial surtax and broadly lower rates than Ontario at most income levels. Compared to Ontario, the differences are typically $500–$3,000 per year at $80,000 income, depending on the province.
- What is the Ontario surtax?
- The Ontario surtax is an additional provincial tax applied when your basic Ontario income tax exceeds certain thresholds. For 2026: a 20% surtax applies on basic Ontario tax above $5,818, plus an additional 36% on basic Ontario tax above $7,446. This effectively pushes the top combined provincial marginal rate significantly higher. The surtax applies only to higher-income earners — at $80,000, most taxpayers are below the $5,818 threshold.
- Do I pay both federal and Ontario income tax?
- Yes. Ontario residents pay two separate income taxes: federal income tax (14%–33% brackets) and Ontario provincial income tax (5.05%–13.16% brackets), calculated separately on the same gross income. The federal and provincial taxes are filed on a single T1 return with the CRA; the CRA collects both. You also pay CPP1, CPP2, and EI premiums on top of income tax.
- How is CPP2 different from CPP1?
- CPP1 (Canada Pension Plan contributions) applies at 5.95% on earnings from the Year's Basic Exemption ($3,500) up to the Year's Maximum Pensionable Earnings ($74,600 in 2026). CPP2 is a second enhanced tier that applies at 4% on earnings between $74,600 and the Year's Additional Maximum Pensionable Earnings ($85,000 in 2026). CPP2 was introduced in 2024 to provide enhanced retirement benefits for higher earners. Employees earning under $74,600 are not subject to CPP2.
- When are Ontario income taxes due?
- Ontario income tax is filed as part of your federal T1 General return, due April 30, 2027 for the 2026 tax year (June 15 for the self-employed, though any taxes owed are still due April 30). If you are employed, your employer withholds taxes throughout the year through payroll deductions. You file the T1 to reconcile any difference — receiving a refund if too much was withheld, or paying the balance if too little.
- Does this calculator include the Ontario Trillium Benefit?
- No — the Ontario Trillium Benefit (OTB), which combines the Ontario Energy and Property Tax Credit, the Northern Ontario Energy Credit, and the Ontario Sales Tax Credit, is not modelled in version 1 of this calculator. These credits are refundable and income-tested; they are particularly valuable for lower-income earners and renters. For a complete picture including OTB, use the CRA MyAccount portal or a certified tax software package.
Related Canada tax pages
Canada Income Tax Calculator
For all-Canada coverage including province selector context
Canada Take-Home Pay Calculator
Monthly and annual net pay breakdown — same engine, different framing
Canada Tax Brackets 2026
Federal bracket rates and cumulative tax reference
🇨🇦 Canada vs 🇺🇸 United States
Side-by-side income tax comparison