Ontario Income Tax Calculator 2025
🍁 Ontario Tax Quick Facts (2025)
- Provincial Tax Rates: 5.05% - 13.16%
- Federal Tax Rates: 15% - 33%
- CPP Contribution: 5.95% (max earnings $68,500)
- EI Contribution: 1.66% (max earnings $63,200)
- Ontario Health Premium: $0 - $900 (income-based)
- Tax Filing Deadline: April 30, 2026
- Authority: Ontario Ministry of Finance
Ontario Provincial Tax Brackets 2025
Ontario has a progressive tax system with 5 provincial tax brackets. You pay different rates on different portions of your income:
| Taxable Income | Provincial Rate | Tax on Bracket |
|---|---|---|
| $0 - $51,446 | 5.05% | Up to $2,598 |
| $51,447 - $102,894 | 9.15% | Up to $4,707 |
| $102,895 - $150,000 | 11.16% | Up to $5,257 |
| $150,001 - $220,000 | 12.16% | Up to $8,512 |
| $220,001+ | 13.16% | On remaining income |
Key Point: These are marginal rates. You don't pay 13.16% on all your income if you earn $250,000 - you pay 5.05% on the first $51,446, then 9.15% on the next chunk, and so on.
Federal Tax Brackets 2025 (Same for All of Canada)
On top of Ontario provincial tax, you also pay federal tax to the Government of Canada:
| Taxable Income | Federal Rate |
|---|---|
| $0 - $55,867 | 15% |
| $55,868 - $111,733 | 20.5% |
| $111,734 - $173,205 | 26% |
| $173,206 - $246,752 | 29% |
| $246,753+ | 33% |
Real Tax Examples: What You Actually Pay
Example 1: $50,000 Salary (Entry-Level/Junior)
| Component | Rate/Amount | Annual Cost |
|---|---|---|
| Federal Tax | 15% on taxable income | ~$5,130 |
| Ontario Provincial Tax | 5.05% average | ~$1,735 |
| CPP | 5.95% | ~$2,767 |
| EI | 1.66% | ~$830 |
| Ontario Health Premium | Income-based | ~$300 |
| Total Deductions | ~$10,762 | |
| Take-Home Pay | ~$39,238 | |
| Effective Tax Rate | ~21.5% | |
Example 2: $75,000 Salary (Mid-Career)
| Component | Rate/Amount | Annual Cost |
|---|---|---|
| Federal Tax | 15-20.5% | ~$10,250 |
| Ontario Provincial Tax | 5.05-9.15% | ~$4,050 |
| CPP | 5.95% | ~$3,868 (max) |
| EI | 1.66% | ~$1,049 (max) |
| Ontario Health Premium | Income-based | ~$450 |
| Total Deductions | ~$19,667 | |
| Take-Home Pay | ~$55,333 | |
| Effective Tax Rate | ~26.2% | |
Example 3: $150,000 Salary (High Earner)
| Component | Rate/Amount | Annual Cost |
|---|---|---|
| Federal Tax | 15-26% | ~$28,850 |
| Ontario Provincial Tax | 5.05-11.16% | ~$12,574 |
| CPP | 5.95% (capped) | ~$3,868 (max) |
| EI | 1.66% (capped) | ~$1,049 (max) |
| Ontario Health Premium | Income-based | ~$900 (max) |
| Total Deductions | ~$47,241 | |
| Take-Home Pay | ~$102,759 | |
| Effective Tax Rate | ~31.5% | |
Provincial vs Federal Tax Breakdown
How Your Taxes Are Split
In Ontario, your total income tax goes to two governments:
Federal Government (Ottawa) Gets:
- Federal income tax (15-33% depending on bracket)
- CPP contributions (pension)
- EI contributions (employment insurance)
What it funds: National defense, EI benefits, CPP pensions, federal infrastructure, federal programs
Ontario Government (Queen's Park) Gets:
- Provincial income tax (5.05-13.16%)
- Ontario Health Premium ($0-$900)
What it funds: OHIP (healthcare), public schools, roads, transit (GO Transit), Ontario-specific programs
Example on $75k salary: You pay ~$10,250 to federal government and ~$4,500 to Ontario government in income taxes.
Ontario vs Other Provinces: Tax Comparison
$75,000 Earner: Provincial Tax Comparison
| Province | Provincial Tax | Total Tax (Prov + Fed + CPP/EI) | Take-Home Pay |
|---|---|---|---|
| Alberta | ~$3,200 | ~$18,817 | ~$56,183 |
| Ontario | ~$4,050 | ~$19,667 | ~$55,333 |
| British Columbia | ~$3,650 | ~$19,267 | ~$55,733 |
| Quebec | ~$7,150 | ~$22,767 | ~$52,233 |
Key Insight: Ontario is in the middle - lower taxes than Quebec, slightly higher than Alberta and BC. For a $75k earner, you take home about $850 less per year than in Alberta, but $3,100 more than in Quebec.
$150,000 Earner: Provincial Tax Comparison
| Province | Provincial Tax | Total Tax (Prov + Fed + CPP/EI) | Take-Home Pay |
|---|---|---|---|
| Alberta | ~$9,350 | ~$43,867 | ~$106,133 |
| Ontario | ~$12,574 | ~$47,241 | ~$102,759 |
| British Columbia | ~$11,200 | ~$45,867 | ~$104,133 |
| Quebec | ~$18,500 | ~$53,167 | ~$96,833 |
At high incomes: Alberta's advantage grows ($3,374 more take-home), BC becomes more competitive than Ontario, and Quebec's high taxes become very noticeable ($5,926 less take-home than Ontario).
CPP and EI: What Are They?
Canada Pension Plan (CPP) - 5.95%
CPP is your mandatory retirement savings. In 2025:
- You pay 5.95% on earnings between $3,500 and $68,500
- Maximum contribution: $3,867.50/year
- Your employer matches this (pays another 5.95%)
- If self-employed, you pay both portions (11.9% total)
What You Get Back
When you retire (as early as age 60, or up to age 70), you receive monthly CPP payments for life. The average payment in 2025 is about $800/month. Maximum is ~$1,400/month if you contributed the max for 40 years.
Is it worth it? You have no choice - it's mandatory. But it's a decent safety net. Think of it as forced retirement savings.
Employment Insurance (EI) - 1.66%
EI provides income if you lose your job, take parental leave, or face illness:
- You pay 1.66% on earnings up to $63,200
- Maximum contribution: $1,049.12/year
- Your employer pays 1.4x your contribution
- Self-employed don't pay unless they opt in
What You Get Back
If you're laid off, you can receive 55% of your average insured earnings (up to $668/week in 2025) for 14-45 weeks depending on your situation and local unemployment rate.
EI also covers parental leave (up to 18 months), sickness (15 weeks), and caregiving. Even if you never use it, it's insurance - you pay in case you need it.
Ontario Health Premium
Ontario is the only province with an explicit health premium. It's a surtax based on your taxable income:
| Taxable Income | Annual Premium |
|---|---|
| Under $20,000 | $0 |
| $20,000 - $36,000 | $300 |
| $36,001 - $48,000 | $450 |
| $48,001 - $72,000 | $600 |
| $72,001 - $200,000 | $750 |
| Over $200,600 | $900 |
Important: This is on top of your provincial income tax. Other provinces don't charge this explicitly, but they build healthcare costs into their general tax rates.
Tax Credits and Deductions in Ontario
Key Credits That Reduce Your Tax Bill
-
Basic Personal Amount
- Federal: $15,705 (you pay no tax on this amount)
- Ontario: $11,865
- Combined: First ~$27,570 is tax-free (approximately)
-
RRSP Contributions
- Reduce taxable income dollar-for-dollar
- Can contribute up to 18% of previous year's income (max $31,560 in 2025)
- Contributions before March 1 count for previous tax year
- Example: Earn $75k, contribute $10k to RRSP → only pay tax on $65k
-
Ontario Trillium Benefit
- Combines energy, property tax, and sales tax credits
- For low to moderate income individuals/families
- Paid monthly
-
Canada Child Benefit (CCB)
- Federal benefit (not Ontario-specific, but available to ON residents)
- Up to $7,787/year per child under 6
- Up to $6,570/year per child 6-17
- Income-tested (reduced at higher incomes)
-
Medical Expenses
- Can claim if over 3% of net income or $2,635 (whichever is less)
- Covers prescriptions, dental, vision, therapy not covered by OHIP
Should You Move to Ontario? (Tax Perspective)
✅ Ontario Makes Sense If:
- You want access to Canada's largest job market (Toronto, Ottawa, Waterloo tech corridor)
- You value services - Ontario has solid healthcare (OHIP), good schools, extensive GO Transit
- You're moving from Quebec (you'll save $3,000-$6,000/year on taxes)
- You work in tech, finance, healthcare, or government (strong sectors in ON)
- You want a balance of taxes and services (not as cheap as AB, not as expensive as QC)
- You're okay with cost of living - Toronto is expensive, but Ottawa, Hamilton, London are more affordable
❌ Consider Alternatives If:
- Your only priority is low taxes → Move to Alberta (saves $850-$3,400/year depending on income)
- You want lower cost of living → Consider New Brunswick, Nova Scotia (lower taxes + cheaper housing)
- You prefer French language/culture → Quebec has higher taxes but unique cultural benefits
- You hate cold winters → BC's lower mainland has milder weather (but expensive housing)
- You don't need a big city → Saskatchewan or Manitoba have lower costs overall
Best Places to Live in Ontario (Tax + Cost of Living)
Taxes are the same everywhere in Ontario, but cost of living varies widely:
-
Ottawa
- More affordable than Toronto ($1,400-$1,800 for 1BR)
- Strong government job market
- Good transit, bilingual city
- Lower overall cost than GTA
-
Hamilton
- Close to Toronto but cheaper ($1,200-$1,600 for 1BR)
- Growing tech and creative sectors
- GO Transit access to Toronto
-
Kitchener-Waterloo
- Tech hub (Google, Shopify, startups)
- Two universities (UWaterloo, Wilfrid Laurier)
- Affordable ($1,300-$1,700 for 1BR)
-
London
- Very affordable ($1,100-$1,400 for 1BR)
- Healthcare sector jobs (hospitals, research)
- Small city feel, less traffic
-
Toronto (if budget allows)
- Most jobs, best transit (subway, streetcars)
- Expensive ($1,800-$2,500+ for 1BR)
- Best for high earners ($100k+)
- Consider suburbs: Mississauga, Vaughan, Markham (cheaper, GO Train access)
Filing Your Ontario Taxes
In Canada, you file one combined return that includes both federal and Ontario provincial taxes. Deadline is April 30, 2026 for 2025 taxes (June 15 if self-employed).
Best Tax Software for Ontario (2025)
-
Wealthsimple Tax - FREE
Completely free for everyone. Simple interface, handles T4s, RRSP, investments. Best for most people. CRA-certified.
-
TurboTax Canada - $20-$60
User-friendly, good for complex situations (rental income, self-employment). Often has discount codes.
-
UFile - $20-$30
Good value, handles everything TurboTax does at lower cost. Popular with savvy Canadians.
-
Studio Tax - FREE (donation-based)
Desktop software, completely free. Interface is dated but works well. Good if you're tech-savvy.
Finding Affordable Tax Help in Ontario
- Free Tax Clinics (CRA Community Volunteer Income Tax Program): FREE if income under $40,000. Available at libraries, community centers across Ontario.
- Accountant/CPA: $150-$400 for simple return. Worth it if you have rental properties, self-employment, or complex investments.
- H&R Block: $70-$200 for basic return. Convenient but pricey for what you get. Only use if you value in-person help.
Key Tax Deadlines
- March 1, 2026: Last day to contribute to RRSP for 2025 tax year
- April 30, 2026: Tax return deadline for employees
- June 15, 2026: Tax return deadline for self-employed (but taxes owed still due April 30)
Moving to Ontario: Establishing Residency
If you're moving to Ontario from another province or country, establish residency properly to avoid tax issues:
- Register for OHIP - Ontario health card (3-month wait if new to ON, bring proof of residency)
- Get Ontario driver's license - Within 60 days of moving
- Update CRA address - File RC325 form or update online via My Account
- File part-year return - If moving mid-year, file for both provinces (old and new)
- Update banks, employer, Service Canada
Ontario vs Alberta: The Big Tax Debate
Should You Move to Alberta for Lower Taxes?
| Factor | Ontario | Alberta |
|---|---|---|
| Provincial Tax (on $75k) | ~$4,050 | ~$3,200 |
| Annual Tax Savings | — | ~$850 |
| Job Market | Larger, more diverse | Strong but oil-dependent |
| Cost of Living (Rent) | Higher (Toronto: $2,000+) | Lower (Calgary: $1,400) |
| Transit | Better (GO, TTC, OC Transpo) | Car-dependent |
| Healthcare (PST on some services) | OHIP (full coverage) | AHS (similar coverage) |
| Sales Tax (PST) | 13% HST | 5% GST only |
Bottom Line: Alberta saves you ~$850/year in income tax + another ~$1,600/year in sales tax (8% difference on $20k spending). But Ontario offers more jobs, better transit, and proximity to U.S. border. It's a lifestyle choice as much as a tax choice.
Common Questions
Do I pay both federal and provincial tax?
Yes. All Canadians pay federal tax (to Ottawa) plus provincial tax (to your province). You file one combined return, but the money goes to two governments.
Can I deduct rent in Ontario?
No. Unlike property tax (homeowners can claim via Ontario Trillium Benefit), renters don't get a direct rent deduction. However, low-income renters may qualify for credits through the Trillium program.
What if I work remotely for a company in another province?
As an Ontario resident, you pay Ontario provincial tax regardless of where your employer is based. If you live in ON, you pay ON taxes - simple as that.
Is RRSP contribution worth it?
Usually yes if you're in the 30%+ combined tax bracket (roughly $50k+ income). You get an immediate tax refund, money grows tax-free, and you withdraw at a lower rate in retirement. Prioritize RRSP over TFSA if your current tax rate is high.
The Bottom Line
Ontario's taxes are middle-of-the-road for Canada. You'll pay more than Alberta or BC (for middle-income earners), but significantly less than Quebec. The trade-off is access to Canada's largest economy, most jobs, and strong services.
Best for: People who value job opportunities, services, and urban amenities over rock-bottom taxes.
Run the numbers: Use the Canada Tax Calculator to compare all provinces for your specific income.
Compare ON with other provinces: Quebec | BC | Alberta
Data Sources:
- Canada Revenue Agency (CRA) - Federal tax rates, CPP, EI
- Ontario Ministry of Finance - Provincial tax rates and credits
Verified for 2025 tax year • Last updated: November 2025
Tax rates for 2025 are typically published by CRA and provincial authorities in December 2024/January 2025. Rates should be reviewed annually in Q1. This calculator provides estimates based on official rates. For personalized tax advice, consult a certified Canadian accountant.