Ontario Tax Brackets 2026
Ontario taxes income in five steps. The thresholds rose by 1.9% for 2026.
| Taxable income | Ontario rate |
|---|---|
| Up to $53,891 | 5.05% |
| $53,891 to $107,785 | 9.15% |
| $107,785 to $150,000 | 11.16% |
| $150,000 to $220,000 | 12.16% |
| Over $220,000 | 13.16% |
The Ontario basic personal amount is $12,989, credited at 5.05%. That is lower than the federal $16,452, so Ontario tax starts at a smaller income than federal tax does.
The Ontario Surtax and Tax Reduction
Ontario adjusts its basic tax in two ways that pull in opposite directions.
- Surtax: 20% of basic Ontario tax above $5,818, plus 36% of basic Ontario tax above $7,446. On a plain salary it first bites at about $99,000 a year, and it lifts the real top Ontario rate well past 13.16%.
- Ontario tax reduction: twice $300, less your basic tax, comes off the bill. It only helps when basic Ontario tax is under $600.
On $150,000, basic Ontario tax is $11,347.83 and the surtax adds $2,510.62. On $22,000, the reduction of $218.64 cuts basic tax of $381.36 down to $162.72.
Ontario Health Premium
The Health Premium is a separate charge on taxable income above $20,000. It rises in steps and never exceeds $900.
| Taxable income | Premium |
|---|---|
| Up to $20,000 | $0 |
| $20,000 to $25,000 | 6% of income over $20,000 |
| $25,000 to $36,000 | $300 |
| $36,000 to $38,500 | $300 plus 6% of income over $36,000 |
| $38,500 to $48,000 | $450 |
| $48,000 to $48,600 | $450 plus 25% of income over $48,000 |
| $48,600 to $72,000 | $600 |
| $72,000 to $72,600 | $600 plus 25% of income over $72,000 |
| $72,600 to $200,000 | $750 |
| $200,000 to $200,600 | $750 plus 25% of income over $200,000 |
| Over $200,600 | $900 |
The Ontario tax reduction never lowers the premium, so the premium is still due where the reduction wipes out Ontario tax. Someone on $40,000 pays $450 of premium on top of $1,221.46 of Ontario tax.
Worked Example: $70,000 in Ontario
- CPP: 5.95% of ($70,000 less the $3,500 exemption) = $3,956.75. The 1% enhanced part, $665, is deducted, so taxable income is $69,335.
- EI: 1.63% up to $68,900 = $1,123.07.
- Federal tax after the basic personal amount, Canada employment amount and CPP and EI credits: $7,278.19.
- Ontario tax after its own credits: $3,255.73. No surtax applies yet.
- Health Premium: $600.
| Item | Per year | Per month |
|---|---|---|
| Gross salary | $70,000 | $5,833.33 |
| Federal income tax | −$7,278.19 | −$606.52 |
| Ontario income tax | −$3,255.73 | −$271.31 |
| Ontario Health Premium | −$600 | −$50 |
| CPP | −$3,956.75 | −$329.73 |
| EI | −$1,123.07 | −$93.59 |
| Take home pay | $53,786.27 | $4,482.19 |
Ontario Salary After Tax at Six Levels
Each row is the calculator's own output. The Ontario column includes the Health Premium.
| Gross salary | Ontario tax and premium | All deductions | Net per year | Net per month |
|---|---|---|---|---|
| $35,000 | $1,288.10 | $5,777.16 | $29,222.84 | $2,435.24 |
| $50,000 | $2,288.18 | $9,855.06 | $40,144.94 | $3,345.41 |
| $70,000 | $3,855.73 | $16,213.73 | $53,786.27 | $4,482.19 |
| $90,000 | $5,781.96 | $22,803.07 | $67,196.93 | $5,599.74 |
| $120,000 | $9,385.57 | $32,657.23 | $87,342.77 | $7,278.56 |
| $160,000 | $16,487.83 | $50,159.48 | $109,840.52 | $9,153.38 |
At $160,000 the deduction share reaches 31.3%, against 16.5% at $35,000.
Ontario Paycheck by Pay Period
The $70,000 salary from the example, cut into the four common Ontario pay schedules:
| Pay schedule | Gross per pay | Net per pay |
|---|---|---|
| Weekly (52) | $1,346.15 | $1,034.35 |
| Every two weeks (26) | $2,692.31 | $2,068.70 |
| Twice a month (24) | $2,916.67 | $2,241.09 |
| Monthly (12) | $5,833.33 | $4,482.19 |
Ontario employers withhold the Health Premium through regular income tax deductions, so it does not appear as its own line on most pay stubs.
Ontario Monthly Gross to Net
Many job offers in Ontario quote a monthly figure. Here is what common monthly salaries leave after every deduction:
| Gross per month | Net per month | Deductions per month |
|---|---|---|
| $3,000 | $2,497.58 | $502.42 |
| $4,000 | $3,233.22 | $766.78 |
| $5,000 | $3,944.98 | $1,055.02 |
| $6,500 | $4,912.66 | $1,587.34 |
| $8,000 | $5,951.49 | $2,048.51 |
The calculator converts a monthly figure to a year by multiplying by 12, then works out tax on the annual total. That is why the Health Premium steps and the CPP ceiling still apply correctly to a monthly entry.
What Ontario Taxes on a Paycheque
- Regular pay, overtime, vacation pay, bonuses and commission are all taxable income in Ontario.
- Group RRSP and registered pension contributions taken at source lower both federal and Ontario taxable income.
- The Ontario employer health tax is paid by employers on their payroll and never comes off your cheque; it is unrelated to the Health Premium.
- No city in Ontario, including Toronto, charges a municipal income tax.
Ontario Assumptions and Sources
The calculator assumes a full year of employment, no other income and only the basic personal amounts. The Ontario tax reduction uses no dependants. Credits such as the Ontario Trillium Benefit are paid separately and are not counted.
Sources: Canada Revenue Agency, T4127 Payroll Deductions Formulas (122nd edition, January 2026, and 123rd edition, July 2026), including the Ontario surtax, tax reduction and Health Premium formulas. Rates for 2026.
Frequently Asked Questions
How much is $70,000 after tax in Ontario?
$53,786.27 a year in 2026, or $4,482.19 a month, for a single employee with no other deductions.
What is the Ontario Health Premium?
A charge of up to $900 a year on taxable income over $20,000, collected with income tax.
Does Toronto have a city income tax?
No. Toronto residents pay the same federal and Ontario income tax as the rest of the province.
When does the Ontario surtax start?
When basic Ontario tax goes over $5,818. A second layer starts above $7,446.
What is the Ontario basic personal amount for 2026?
$12,989.
How much is $5,000 a month after tax in Ontario?
$3,944.98 a month in 2026, including the Health Premium.
Is this a gross to net paycheck calculator for Ontario pay stubs?
Yes. Switch the amount to monthly or read the pay schedule table for weekly, biweekly and semi monthly paycheques.