Ontario is Canada's most populous province, and for the millions of Ontarians filing taxes in 2025, understanding exactly how provincial income tax works — alongside the federal system — is essential for accurate planning. Ontario has five provincial tax brackets in 2025, plus a unique surtax mechanism that adds a layer of complexity for higher earners. This guide covers every rate and bracket, shows the combined federal plus Ontario marginal rates at each income level, and walks through a complete worked example for a $75,000 salary.
Ontario at a Glance (2025): Five provincial brackets ranging from 5.05% to 13.16%. Ontario basic personal amount: $11,141. Ontario surtax applies above $5,654 of basic Ontario tax. Highest combined marginal rate: approximately 53.53% above $220,000.
Ontario Provincial Income Tax Brackets 2025
Ontario's provincial income tax is levied separately from federal income tax, but both are filed on the same T1 General tax return. The provincial rates below apply only to Ontario residents and are applied to your taxable income after claiming the Ontario basic personal amount and other deductions.
| Taxable Income Range | Ontario Tax Rate | Tax on This Portion |
|---|---|---|
| $0 – $51,446 | 5.05% | Up to $2,598 |
| $51,446 – $102,894 | 9.15% | Up to $4,707 |
| $102,894 – $150,000 | 11.16% | Up to $5,254 |
| $150,000 – $220,000 | 12.16% | Up to $8,512 |
| Over $220,000 | 13.16% | On everything above $220,000 |
These are marginal rates — you pay the stated percentage only on the income within each bracket, not on your entire income. A person earning $75,000 in Ontario does not pay 9.15% on all $75,000; they pay 5.05% on the first $51,446 and 9.15% on the remaining $23,554.
Federal Income Tax Brackets 2025 (for Ontario Residents)
Ontario residents also pay federal income tax, which uses its own separate bracket system. The 2025 federal brackets are:
| Taxable Income Range | Federal Tax Rate |
|---|---|
| $0 – $57,375 | 15% |
| $57,375 – $114,750 | 20.5% |
| $114,750 – $158,519 | 26% |
| $158,519 – $220,000 | 29% |
| Over $220,000 | 33% |
Combined Federal + Ontario Marginal Tax Rates 2025
Your effective marginal tax rate — the rate on your next dollar of income — is the federal rate plus the Ontario rate for that income bracket. Here are the combined rates at each income level:
| Income Level | Federal Rate | Ontario Rate | Combined Marginal Rate |
|---|---|---|---|
| Up to $51,446 | 15% | 5.05% | 20.05% |
| $51,446 – $57,375 | 15% | 9.15% | 24.15% |
| $57,375 – $102,894 | 20.5% | 9.15% | 29.65% |
| $102,894 – $114,750 | 20.5% | 11.16% | 31.66% |
| $114,750 – $150,000 | 26% | 11.16% | 37.16% |
| $150,000 – $158,519 | 26% | 12.16% | 38.16% |
| $158,519 – $220,000 | 29% | 12.16% | 41.16% |
| Over $220,000 | 33% | 13.16% | 46.16%* |
*Does not include Ontario surtax, which adds approximately 2–4 percentage points for high-income earners subject to it. The top effective combined rate including surtax is approximately 53.53%.
The Ontario Surtax: What It Is and Who Pays It
Ontario is unique among Canadian provinces in levying a "surtax" — essentially a tax on your tax. The Ontario surtax is calculated on your basic Ontario income tax after non-refundable credits. For 2025:
- First surtax tier: 20% of the amount by which your basic Ontario tax exceeds $5,654
- Second surtax tier: An additional 36% of the amount by which your basic Ontario tax exceeds $7,242
The combined effect of the 20% + 36% surtax above $7,242 of basic Ontario tax is an additional 56% on that portion. For a high-income earner, this adds roughly 2–4 percentage points to the effective marginal rate. The surtax is one reason Ontario's top combined rate is among the highest in Canada.
Ontario Basic Personal Amount 2025
The Ontario basic personal amount (BPA) for 2025 is $11,141. This is a non-refundable tax credit that reduces your Ontario tax payable. Every Ontario resident gets this credit automatically. The credit value is 5.05% × $11,141 = approximately $563 reduction in Ontario tax.
The federal basic personal amount is $16,129 for 2025 (higher for lower-income earners due to the enhanced BPA). The federal credit value is 15% × $16,129 = approximately $2,419 reduction in federal tax.
Ontario Tax Credits Worth Knowing in 2025
Ontario Trillium Benefit (OTB)
The Ontario Trillium Benefit combines three credits into a single monthly payment:
- Ontario Sales Tax Credit (OSTC): Up to $356/year for a single adult (2025 amounts indexed to inflation). Phases out as income rises.
- Ontario Energy and Property Tax Credit (OEPTC): Based on rent and property tax paid; for most renters in Ontario, this can be $1,000–$1,800 per year depending on age and location.
- Northern Ontario Energy Credit (NOEC): Additional credit for residents of northern Ontario.
Ontario Health Premium
The Ontario Health Premium is an additional levy included with your Ontario taxes — but it is not technically an income tax; it funds the health care system. For 2025, the premium ranges from $0 (income below $20,000) to $900 per year (income over $200,600). It is automatically included in your Ontario tax calculation on your return.
CARE Tax Credit
The Ontario CARE tax credit provides refundable support for eligible childcare expenses. Lower-income families receive a higher percentage. The credit can offset 25–75% of eligible childcare costs depending on family net income.
Worked Example: $75,000 Salary in Ontario (2025)
Let's calculate the approximate total tax for an Ontario resident earning $75,000 in employment income with no other deductions (other than the basic personal amounts).
Step 1: Federal Tax
- Federal BPA: $16,129 — reduces taxable income for credit purposes
- Federal tax on $57,375 at 15% = $8,606
- Federal tax on ($75,000 − $57,375) = $17,625 at 20.5% = $3,613
- Total gross federal tax = $12,219
- Less federal BPA credit (15% × $16,129) = −$2,419
- Less CPP/EI credits (approx.) = −$900
- Net federal tax ≈ $8,900
Step 2: Ontario Tax
- Ontario tax on $51,446 at 5.05% = $2,598
- Ontario tax on ($75,000 − $51,446) = $23,554 at 9.15% = $2,155
- Total gross Ontario tax = $4,753
- Less Ontario BPA credit (5.05% × $11,141) = −$563
- Less Ontario Health Premium (approx. $600 at $75K income) = added separately
- Net Ontario tax ≈ $4,190 + $600 OHP = $4,790
Step 3: CPP and EI Contributions
- CPP employee contribution (2025): approx. $3,868 (on earnings up to $71,300)
- EI premium (2025): approx. $1,049 (on insurable earnings up to $65,700 at 1.66%)
Summary: $75,000 Ontario Salary
| Item | Amount |
|---|---|
| Gross income | $75,000 |
| Federal income tax | ~$8,900 |
| Ontario income tax + OHP | ~$4,790 |
| CPP contributions | ~$3,868 |
| EI premiums | ~$1,049 |
| Total deductions | ~$18,607 |
| Approximate take-home pay | ~$56,393/year ($4,699/month) |
Note: These figures are estimates. Your actual tax depends on additional credits, deductions (RRSP, childcare, employment expenses), and other income sources. Use our salary calculator for a personalized breakdown.
How RRSP Contributions Reduce Ontario Taxes
An RRSP contribution reduces your net income on both your federal and Ontario returns, saving tax at your marginal rate. For an Ontario resident earning $75,000, the combined marginal rate is approximately 29.65% (20.5% federal + 9.15% Ontario). A $10,000 RRSP contribution would generate an estimated combined tax savings of approximately $2,965.
Additionally, reducing your net income through RRSP contributions can increase income-tested credits like the Ontario Trillium Benefit. If an RRSP contribution drops your net income into a higher OTB entitlement range, the effective value of the RRSP contribution is even higher than the direct tax savings alone.
See Your Exact Ontario Take-Home Pay
Our Salary After Tax Calculator lets you enter your Ontario income and see your exact take-home pay, tax breakdown, and the impact of RRSP contributions.
Salary Calculator RRSP Tax SavingsFrequently Asked Questions
Ontario's 2025 provincial brackets are: 5.05% up to $51,446; 9.15% from $51,446–$102,894; 11.16% from $102,894–$150,000; 12.16% from $150,000–$220,000; and 13.16% over $220,000. Federal tax applies separately on top of these rates. The combined top marginal rate including surtax reaches approximately 53.53% on income over $220,000.
The Ontario surtax is a tax levied on top of your basic Ontario income tax. For 2025, a 20% surtax applies when your basic Ontario tax exceeds $5,654, and an additional 36% surtax applies when it exceeds $7,242 (a combined 56% surtax on that portion). The surtax effectively adds 2–4 percentage points to the marginal rate for affected earners — generally those with income above approximately $100,000.
At $100,000 of employment income in Ontario, the combined federal and Ontario marginal tax rate is approximately 43.41%. This represents the 20.5% federal rate plus the 9.15% Ontario rate on income in the $57,375–$102,894 range, plus applicable Ontario surtax for higher earners. Every additional dollar earned around $100,000 results in about $0.43 of combined income tax.
The Ontario Trillium Benefit (OTB) combines three provincial credits: the Ontario Sales Tax Credit (up to $356/year for a single adult), the Ontario Energy and Property Tax Credit (based on rent and property taxes paid — potentially $1,000–$1,800 for renters), and the Northern Ontario Energy Credit for northern residents. The OTB is income-tested and paid in monthly instalments. Claim it by completing the ON-BEN form with your tax return.
An RRSP contribution reduces your net income, which saves tax at your combined federal + Ontario marginal rate. For someone earning $75,000 in Ontario, the combined marginal rate is approximately 29.65%. A $10,000 RRSP contribution saves approximately $2,965 in combined taxes. Additionally, lower net income can increase income-tested benefits like the Ontario Trillium Benefit, making the RRSP even more valuable for moderate-income Ontarians.
Sources
- Ontario Ministry of Finance — Ontario Tax Rates and Credits
- Canada Revenue Agency — Ontario Tax and Credits (ON428)
- Canada Revenue Agency — Ontario Trillium Benefit