Ontario income tax calculator 2025
Ontario uses five progressive brackets from 5.05% to 13.16%, but also applies a surtax on higher provincial bills — an extra layer of tax that this calculator does not model. Actual Ontario tax for higher earners will exceed the displayed estimate.
Canadian income tax calculator 2025
Federal and provincial tax, CPP, and EI. Live calculation as you type — no page refresh, no sign-up.
Your provincial tax rate depends on this.
Reduces your taxable income dollar-for-dollar.
Union dues, child care, home office, etc.
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Ontario
- Basic personal amount: $12,747.
- Five brackets from 5.05% to 13.16%. A surtax applies on provincial tax exceeding $5,554, effectively pushing top rates higher.
- Ontario also offers a low-income tax reduction and targeted benefit credits for families.
Breakdown
- Federal tax
- $9,594
- Provincial tax
- $4,154
- CPP contributions (incl. $148 CPP2)
- $4,182
- EI premiums
- $1,077
- Total deductions
- $19,007
Take-home per period
Where your money goes
- Take-home74.7%
- Federal12.8%
- Provincial5.5%
- CPP5.6%
- EI1.4%
2025 Ontario provincial tax brackets
These rates apply to your provincial taxable income. Federal tax is calculated separately using federal brackets.
| Income range | Tax rate |
|---|---|
| First $51,446 | 5.05% |
| Over $51,446 to $102,894 | 9.15% |
| Over $102,894 to $150,000 | 11.16% |
| Over $150,000 to $220,000 | 12.16% |
| Over $220,000 | 13.16% |
How Ontario income tax works in 2025
For 2025, Ontario's five brackets run: 5.05% on the first $51,446, 9.15% to $102,894, 11.16% to $150,000, 12.16% to $220,000, and 13.16% above $220,000.
The Ontario BPA is $11,865 for 2025, generating a non-refundable credit at the 5.05% rate — worth approximately $599. The provincial credit for the BPA is one of the more modest in Canada due to the relatively low BPA amount.
Ontario uniquely levies a provincial surtax on top of its base income tax: 20% on Ontario tax exceeding approximately $5,315, and a further 36% on Ontario tax exceeding approximately $6,802. This surtax effectively pushes marginal Ontario rates well above the stated bracket rates for earners above roughly $75,000–$80,000. This calculator shows Ontario tax based on the bracket rates only — it does not apply the surtax.
Note on Ontario surtax
Ontario levies a surtax on provincial income tax exceeding ~$5,710. This calculator applies the published bracket rates but does not include the surtax. For higher incomes, your actual Ontario tax bill will be larger than shown here.
What changed for 2025 in Ontario
For 2025, bracket thresholds reflect standard annual indexation. No structural changes to the rate schedule or surtax structure.
What makes Ontario's tax system distinctive
The Ontario surtax is the province's most distinctive and least intuitive feature. Because it layers a percentage charge on top of base provincial tax rather than directly on income, the effective marginal rate calculations are complex. For an earner at $100,000, the combined surtax effect can add 3–4 percentage points to the effective Ontario rate beyond what the 9.15% bracket suggests.
Ontario's Low-income Individuals and Families Tax (LIFT) Credit provides a non-refundable credit of up to $875 for individuals with employment income. It phases in at 5.05% of employment income, meaning the full $875 credit is reached at approximately $17,326 of earnings.
Ontario tax credits and deductions
The Ontario Trillium Benefit (OTB) combines three credits into a single monthly payment: the Ontario Energy and Property Tax Credit (OEPTC) for property tax or rent paid, the Ontario Sales Tax Credit (OSTC) for general sales tax relief, and the Northern Ontario Energy Credit (NOEC) for residents of northern Ontario. The OTB is particularly valuable for renters and lower-income homeowners.
The LIFT Credit reduces Ontario provincial tax by up to $875 for workers with employment income. It is non-refundable and claimed on the provincial Schedule ON428-A.
FAQ's
What is Ontario's provincial surtax and why isn't it in this calculator?
Ontario levies a surtax on top of its regular provincial income tax — a percentage charged on the provincial tax itself once it exceeds certain thresholds. For 2026, a 20% surtax applies when Ontario tax exceeds roughly $5,710, and a further 36% applies above roughly $7,307. In practice, this pushes the effective top provincial rate higher than the published bracket rates suggest. This calculator applies Ontario's published marginal brackets but does not model the surtax, which means take-home pay estimates for higher incomes will be slightly optimistic. Residents with Ontario tax near or above those thresholds should use the CRA's My Account or tax software for an accurate figure.What's the difference between my marginal and average tax rate?
Your marginal rate is the rate that applies to the next dollar you earn — it's set by whichever federal and provincial bracket the top slice of your income falls into. Your average rate is simply total income tax divided by gross income, expressed as a percentage. Canada uses a graduated bracket system, so only the income above each threshold is taxed at the higher rate — not your entire income. For most people, the marginal rate is noticeably higher than the average rate.How is taxable income calculated?
Taxable income starts with your total income from all sources — employment, self-employment, investments, and other amounts reported on your T4 and other CRA slips. From that you subtract permitted deductions: RRSP contributions, union and professional dues, pension adjustments, child care expenses, and a few others the CRA allows above the line. The result is your net income, which is what federal and provincial tax rates are applied to before non-refundable credits like the basic personal amount further reduce the bill.What is the basic personal amount (BPA)?
The basic personal amount is a non-refundable tax credit available to every Canadian taxpayer, effectively sheltering a baseline slice of income from tax. For 2026, the federal BPA is $16,452, though it gradually phases down for incomes above roughly $181,440. Each province sets its own BPA on top of the federal one — ranging from about $10,818 in Newfoundland and Labrador to $22,323 in Alberta. Because it works as a credit rather than a deduction, it reduces the tax you owe directly rather than simply lowering the income that gets taxed.How do CPP and CPP2 contributions work in 2026?
The Canada Pension Plan (CPP) requires employees to contribute 5.95% on earnings between $3,500 (the basic exemption) and $74,600 (the Year's Maximum Pensionable Earnings) for 2026. CPP2 is a second tier introduced in 2024: a separate 4% contribution applies to earnings between that first ceiling and a second ceiling of $85,000. Employers match both tiers; self-employed individuals pay the full employee-plus-employer share for each. Quebec residents contribute to the Quebec Pension Plan (QPP) instead, which follows similar but distinct rules.When am I required to pay EI premiums?
Most employees pay Employment Insurance (EI) premiums on insurable earnings up to the annual ceiling — $65,700 in 2026 — at a rate of 1.64% for the employee share. Quebec residents pay a lower rate of 1.31% because they contribute separately to the Quebec Parental Insurance Plan (QPIP). Self-employed individuals are generally exempt from EI unless they've voluntarily opted into the program. Once your earnings reach the annual ceiling, no further premiums are deducted for the rest of that calendar year.How do RRSP contributions reduce my tax?
Contributing to a Registered Retirement Savings Plan (RRSP) reduces your net income dollar-for-dollar, directly lowering both federal and provincial income tax for that year. The tax saving depends on your marginal rate — at a 43% combined marginal rate, a $5,000 contribution saves about $2,150 in tax. Contribution room equals 18% of your prior year's earned income up to an annual maximum, plus any unused room carried forward. Growth inside an RRSP is tax-deferred; you pay income tax only when funds are withdrawn, typically in retirement when your marginal rate may be lower.Will the calculator's result match my actual CRA tax bill?
This calculator estimates federal and provincial income tax, CPP contributions, and EI premiums using CRA-published 2026 rates — it produces a reliable ballpark for the most common employment income scenario. It does not account for Ontario's provincial surtax, additional non-refundable credits beyond the basic personal amount (medical expenses, charitable donations, the disability tax credit, tuition), dividend tax credits, the capital gains inclusion rate, or the alternative minimum tax. If any of those apply to you, your actual Notice of Assessment may differ materially. Use this tool for planning and year-over-year comparisons, not as a substitute for reviewing your completed T1 return or consulting a tax professional.