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Ontario Personal Tax Rates

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Ontario
Tax Rates - Current Marginal Tax Rates -> Ontario Personal Income Tax Rates

Ontario 2016 and 2017 Personal Marginal Income Tax Rates

The Federal tax brackets and personal amounts are increased for 2017 by an indexation factor of 1.014, and the Ontario brackets and amounts are increased by an indexation factor of 1.016, except for the $150,000 and $220,000 bracket amounts, which are not indexed for inflation, as per the Ontario 2014 Budget.  The indexation factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.

The 2016 marginal tax rate for non-eligible dividends reflects the rate that is in effect automatically due to the change in the gross-up rate for 2016.  The Ontario 2016 Budget confirmed that they would not make a legislative change to this, but indicated that they would review the rate for 2017 and later years.

Please read the article Understanding the Tables of Personal Income Tax Rates.

Ontario Personal Income Tax Brackets and Tax Rates

2017 Taxable Income 2017 Tax Rates 2016 Taxable Income 2016 Tax Rates
first $42,201 5.05% first $41,536 5.05%
over $42,201 up to $84,404 9.15% over $41,536 up to $83,075 9.15%
over $84,404 up to $150,000 11.16% over $83,075 up to $150,000 11.16%
over $150,000 up to $220,000 12.16% over $150,000 up to $220,000 12.16%
over $220,000 13.16% over $220,000 13.16%

Combined Federal & Ontario Tax Brackets and Tax Rates Including Surtaxes

2017 Taxable Income 2017 Marginal Tax Rates 2016 Taxable Income 2016 Marginal Tax Rates
Other
Income
Capital
Gains
Canadian Dividends Other
Income
Capital
Gains
Canadian Dividends
Eligible Non-Eligible Eligible Non-Eligible
first $42,201 20.05% 10.03% -6.86% 6.13% first $41,536 20.05% 10.03% -6.86% 6.13%
over $42,201 up to $45,916 24.15% 12.08% -1.20% 10.93% over $41,536 up to $45,282 24.15% 12.08% -1.20% 10.93%
over $45,916 up to $74,313 29.65% 14.83% 6.39% 17.37% over $45,282 up to $73,145 29.65% 14.83% 6.39% 17.37%
over $74,313 up to $84,404 31.48% 15.74% 8.92% 19.51% over $73,145 up to $83,075 31.48% 15.74% 8.92% 19.51%
over $84,404 up to $87,559 33.89% 16.95% 12.24% 22.33% over $83,075 up to $86,176 33.89% 16.95% 12.24% 22.33%
over $87,559 up to $91,831 37.91% 18.95% 17.79% 27.03% over $86,176 up to $90,563 37.91% 18.95% 17.79% 27.03%
over $91,831 up to $142,353 43.41% 21.70% 25.38% 33.46% over $90,563 up to $140,388 43.41% 21.70% 25.38% 33.46%
over $142,353 up to $150,000 46.41% 23.20% 29.52% 36.97% over $140,388 up to $150,000 46.41% 23.20% 29.52% 36.97%
over $150,000 up to $202,800 47.97% 23.98% 31.67% 38.80% over $150,000 up to $200,000 47.97% 23.98% 31.67% 38.80%
over $202,800 up to $220,000 51.97% 25.98% 37.19% 43.48% over $200,000 up to $220,000 51.97% 25.98% 37.19% 43.48%
over $220,000 53.53% 26.76% 39.34% 45.30% over $220,000 53.53% 26.76% 39.34% 45.30%

Marginal tax rate for dividends is a % of actual dividends received (not grossed-up amount).
Marginal tax rate for capital gains is a % of total capital gains (not taxable capital gains).
Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is 17%.
The surtax is calculated before deducting dividend tax credits.
For more information see Ontario dividend tax credits.
Marginal tax rates do not include the Ontario Health Premium, which increases the above rates by up to 1.2%

Ontario Surtaxes

2017 2016
Surtax rate (included in above rates) 20% 36% Surtax rate (included in above rates) 20% 36%
Surtax is on ON tax greater than $4,556 $5,831 Surtax is on ON tax greater than $4,484 $5,739
Person with only basic personal amount - surtax starts at taxable income of $74,313 $87,559 Person with only basic personal amount - surtax starts at taxable income of $73,145 $86,176

The 36% surtax is in addition to the 20% surtax, for a total surtax of 56%.
The surtax increases the 13.16% tax rate to 20.53% (13.16% x 1.56).
Surtaxes are calculated before deducting dividend tax credits.

Ontario Basic Personal Amount

2017 Personal Amount 2017 Tax Rate 2016 Personal Amount 2016 Tax Rate
$10,171 5.05% $10,011 5.05%

Federal Basic Personal Amount

2017 Personal Amount 2017 Tax Rate 2016 Personal Amount 2016 Tax Rate
$11,635 15% $11,474 15%

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Revised: November 29, 2016

 

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