2026 Ontario Income Tax Tables

2026 Ontario Tax Rates Publication

Our Partners and experts have prepared for your reference, tax rates tables which capture federal and provincial tax rates information for Ontario.

2026 Corporate Tax Rates (a)

(a) Assumes a December year end.
(b) Preferential rate reduced for corporations having taxable capital in excess of $10M on an associated group basis.
(c) For a CCPC, the tax rate on investment income, net of dividend refund, is 30.67% lower.
(d) Employees of the corporation, or of an associated corporation, must work and be remunerated for 5,500 hours for the current and previous taxation year or be a corporation in the primary or manufacturing sector. For corporations with less than 5,000 remunerated hours the rate is 20.5%.
(e) Effective July 1, 2026, the Ontario small business income tax rate will decrease from 3.2% to 2.2%.
(f) Effective April 1, 2025, the Nova Scotia small business limit was increased from $500,000 to $700,000.
(g) Effective July 1, 2025, the Prince Edward Island small business limit was increased from $500,000 to $600,000.
(h) Effective January 1, 2018, the Saskatchewan small-business limit was increased from $500,000 to $600,000.
(i) The federal corporate income tax rates for manufacturers of qualifying zero-emission technology are reduced to 7.5% for eligible income otherwise subject to the 15% federal general corporate income tax rate or 4.5% for eligible income otherwise subject to the 9% federal small-business corporate income tax rate. The reduced tax rate has been extented and will gradually phase out for taxation years beginning 2032 and will be fully phased out for taxation years beginning after 2034.

2026 Combined Top Personal Tax Rates

2026 Select U.S. Tax Rates

(a) All rates are effective at time of publication.
(b) Highest marginal general tax rate, net of federal deduction for state taxes (corporate only).
(c) New York state tax rate does not include New York City taxes.
(d) The above rates do not include Medicare and Social Security taxes.
(e) For United States residents, an additional 3.8% tax is imposed on investment income when the income exceeds $200,000 USD if the taxpayer is not married, $125,000 USD if married filing separately, or $250,000 USD if married filing jointly.

2026 Personal Tax Rates (a), (b)                                             Ontario Residents

(a) Assumes single taxpayer with no dependants receiving basic exemption only.
(b) Does not include the Ontario Health Premium

Select Personal Tax Credits for 2026                    Combined Federal and Provincial

(a) Maximum credit that is gradually reduced when income exceeds $46,432 in 2026 for federal purposes and $47,210 in 2026 for Ontario purposes.
(b) Applies to donations in excess of $200 for individual with taxable income above $258,482.
(c) Applies to medical expenses in excess of the lesser of 3% of net income and $2,890 for federal purposes and the lessers of 3% of net income and $2,940 in 2026 for Ontario purposes.

2026 Investment Yields (a)

Ontario Resident

(a) Analysis is based on 53.53% marginal rate for an Ontario taxpayer.

Salary vs. Dividend

Comparison of Net Cash Retained by Shareholders (a)

(a) Assumes corporation has $1,000 of income available for disbursement to owner/manager.
(b) Only takes into account Employer Health Tax paid by corporation at top rate of 1.95%.
(c) Factors in a blended tax rate resulting from proposed 2026 Ontario budget changes (combined rates of 12.2% for first six months of 2026 and 11.2% for last six months of 2026).
(d) Assumes dividends paid are ineligible.
(e) Net of dividend refund.

Income that can be received tax-free

Ontario Resident (a)

(a) Excludes Ontario health premium payable ($450 in respect of the maximum ineligible dividend noted above and $750 in respect of the maximum eligible dividend noted above).

Sales Tax Rates in Canada 202

(a) GST: Goods and Services Tax
(b) HST: Harmonized Sales Tax
(c) PST: Provincial Sales Tax
(d) QST: Quebec Sales Tax

Printable version