2025 Ontario Tax Brackets

Updated

Understanding your Ontario tax bracket is essential when filing your income tax return or planning your finances for the year. Ontario residents pay both provincial and federal income tax, and both levels use a progressive system where higher portions of income are taxed at higher rates. Below you will find the 2025 and 2024 Ontario provincial tax brackets along with the federal tax brackets that apply in Ontario.

If you want to see exactly how much you would take home after taxes, try the Ontario salary after tax calculators for common salary amounts. You can also use the income tax calculator for a customized estimate, or check where your earnings rank on the Canadian income percentile calculator.

Ontario 2025 provincial tax brackets

These are the Ontario provincial income tax rates for the 2025 tax year. The first two bracket thresholds are indexed annually for inflation while the upper three remain fixed.

Ontario Provincial Tax Bracket Tax Rate
First $52,886 5.05%
Over $52,886 up to $105,775 9.15%
Over $105,775 up to $150,000 11.16%
Over $150,000 up to $220,000 12.16%
Over $220,000 13.16%

Ontario indexes the first two bracket thresholds by the Ontario Consumer Price Index each year. For 2025 the indexation factor was approximately 2.7% which moved the first bracket from $51,446 to $52,886 and the second from $102,894 to $105,775. The top three thresholds at $150,000, $220,000 and above remain unchanged. If you earn at the Ontario minimum wage, you’ll sit entirely in the lowest bracket. At the $100,000 salary level, you’re in the second bracket.

Ontario surtax

In addition to the base provincial tax rates above, Ontario levies a surtax on higher-income earners. The Ontario surtax is calculated as:

  • 20% of basic provincial tax exceeding $5,315
  • 36% of basic provincial tax exceeding $6,802

This surtax effectively raises the marginal tax rate for individuals whose basic provincial tax exceeds these thresholds. Combined with the federal tax, the top marginal rate in Ontario reaches approximately 53.53% on income over $253,414.

Ontario 2024 provincial tax brackets

These are the Ontario provincial tax brackets that applied for the 2024 tax year which you would use when filing your 2024 tax return:

Ontario Provincial Tax Bracket Tax Rate
First $51,446 5.05%
Over $51,446 up to $102,894 9.15%
Over $102,894 up to $150,000 11.16%
Over $150,000 up to $220,000 12.16%
Over $220,000 13.16%

Federal tax brackets 2025

This is the portion of federal taxes that Ontario residents pay for the 2025 tax year. Federal brackets are indexed annually by the national Consumer Price Index:

Federal Tax Bracket Tax Rate
$57,375 or less 15.00%
$57,375 to $114,750 20.50%
$114,750 to $177,882 26.00%
$177,882 to $253,414 29.00%
More than $253,414 33.00%

Federal tax brackets 2024

These are the 2024 federal brackets for reference when filing your 2024 return:

Federal Tax Bracket Tax Rate
$55,867 or less 15.00%
$55,867 to $111,733 20.50%
$111,733 to $173,205 26.00%
$173,205 to $246,752 29.00%
More than $246,752 33.00%

Combined Ontario and federal marginal tax rates 2025

When you add the Ontario provincial rate to the federal rate, the combined marginal rates for 2025 are:

Taxable Income Range Combined Marginal Rate
Up to $52,886 20.05%
$52,886 to $57,375 24.15%
$57,375 to $105,775 29.65%
$105,775 to $114,750 31.48%
$114,750 to $150,000 33.89%
$150,000 to $177,882 37.91%
$177,882 to $220,000 46.41%
$220,000 to $253,414 49.97%
Over $253,414 53.53%

These combined rates help you understand the true marginal rate on each additional dollar of income earned in Ontario. For a detailed take-home calculation at specific salary levels, see the Canada salary after tax guides.

How to calculate your Ontario income tax

To calculate your total Ontario income tax you apply each bracket rate only to the income that falls within that range. Here is an example for someone earning $100,000 in Ontario for 2025:

Provincial tax:

  • 5.05% on the first $52,886 = $2,670.74
  • 9.15% on income from $52,886 to $100,000 ($47,114) = $4,310.93
  • Total Ontario provincial tax = $6,981.67

Federal tax:

  • 15% on the first $57,375 = $8,606.25
  • 20.5% on income from $57,375 to $100,000 ($42,625) = $8,738.13
  • Total federal tax = $17,344.38

Combined tax on $100,000 = approximately $24,326 before accounting for credits such as the basic personal amount.

The Ontario income percentile calculator can show you where a $100,000 salary ranks compared to other Canadians.

Ontario tax credits and deductions

Several credits and deductions can reduce the overall amount of tax you owe in Ontario:

  • Basic personal amount: For 2025 the federal basic personal amount is $16,129 and the Ontario basic personal amount is $11,865. These amounts are tax-free.
  • Ontario Trillium Benefit: Combines the Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit, and Northern Ontario Energy Credit into a single monthly payment.
  • Ontario CARE tax credit: A refundable credit for child care expenses for families with income under $150,000. Note: RRSP contributions reduce taxable income and defer tax to retirement. See the RRSP contribution limit guide for current limits. You can also use the RRSP calculator to model the tax savings at your income level. The RRSP vs TFSA comparison can help you decide where to contribute first.
  • TFSA contributions: While not tax-deductible, investment income and withdrawals from a TFSA are tax-free. Use the TFSA calculator to project growth.

If you are earning capital gains in Ontario from selling property or investments, the Ontario capital gains tax calculator can help you understand how much tax applies under the current inclusion rates.

How Ontario compares to other provinces

Ontario sits roughly in the middle of Canadian provinces for overall tax burden. The top combined marginal rate of 53.53% is higher than Alberta (48%) and Saskatchewan (47.5%) but lower than Nova Scotia (54%) and Newfoundland (54.8%). Residents considering a move or comparing job offers across provinces should factor in both provincial income tax rates and cost of living differences.

The average income in Ontario is $54,300 which places most earners in the 29.65% combined marginal bracket for 2025.

Frequently asked questions

What are the Ontario tax brackets for 2025?

Ontario has five provincial tax brackets for 2025: 5.05% on the first $52,886 of taxable income, 9.15% on income from $52,886 to $105,775, 11.16% from $105,775 to $150,000, 12.16% from $150,000 to $220,000, and 13.16% on income over $220,000. These are in addition to federal tax.

How much tax do I pay on a $100,000 salary in Ontario?

On a $100,000 salary in Ontario for 2025 you would owe approximately $6,982 in provincial tax and $17,344 in federal tax for a combined total of roughly $24,326 before any credits or deductions are applied. Your effective tax rate would be about 24.3%.

What is the Ontario surtax?

The Ontario surtax is an additional provincial tax of 20% on basic Ontario tax exceeding $5,315 plus 36% of basic Ontario tax exceeding $6,802. This means higher-income Ontario residents pay more than the base provincial rates suggest.

What is the top marginal tax rate in Ontario for 2025?

The top combined federal and Ontario marginal tax rate for 2025 is 53.53% which applies to taxable income over $253,414.

When do the 2025 Ontario tax brackets apply?

The 2025 tax brackets apply to income earned between January 1, 2025 and December 31, 2025. You will use these brackets when filing your 2025 tax return in early 2026. For your 2024 return filed in spring 2025 use the 2024 brackets listed above.

Tax brackets across Canada