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

Ontario 2017 and 2018 Personal Marginal Income Tax Rates

The Federal tax brackets and personal amounts are increased for 2018 by an indexation factor of 1.015, and the Ontario brackets and amounts are increased by an indexation factor of 1.018, 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 not yet been confirmed to Canada Revenue Agency information.

The 2018 marginal tax rates for non-eligible dividends reflect the rates that are in effect automatically due to the change in the gross-up rate for 2018, as announced in the October 24, 2017 Fall Economic Statement.  They have since been increased by the change in the non-eligible dividend tax credit rate announced in the Ontario November 14, 2017 Fall Economic Statement.

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

Ontario Personal Income Tax Brackets and Tax Rates

2018 Taxable Income 2018 Tax Rates 2017 Taxable Income 2017 Tax Rates
first $42,960 5.05% first $42,201 5.05%
over $42,960 up to $85,923 9.15% over $42,201 up to $84,404 9.15%
over $85,923 up to $150,000 11.16% over $84,404 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

2018 Taxable Income 2018 Marginal Tax Rates 2017 Taxable Income 2017 Marginal Tax Rates
Other
Income
Capital
Gains
Canadian Dividends Other
Income
Capital
Gains
Canadian Dividends
Eligible Non-Eligible Eligible Non-Eligible
first $42,960 20.05% 10.03% -6.86% 7.81% first $42,201 20.05% 10.03% -6.86% 6.13%
over $42,960 up to $46,605 24.15% 12.08% -1.20% 12.57% over $42,201 up to $45,916 24.15% 12.08% -1.20% 10.93%
over $46,605 up to $75,657 29.65% 14.83% 6.39% 18.95% over $45,916 up to $74,313 29.65% 14.83% 6.39% 17.37%
over $75,657 up to $85,923 31.48% 15.74% 8.92% 21.07% over $74,313 up to $84,404 31.48% 15.74% 8.92% 19.51%
over $85,923 up to $89,131 33.89% 16.95% 12.24% 23.87% over $84,404 up to $87,559 33.89% 16.95% 12.24% 22.33%
over $89,131 up to $93,208 37.91% 18.95% 17.79% 28.53% over $87,559 up to $91,831 37.91% 18.95% 17.79% 27.03%
over $93,208 up to $144,489 43.41% 21.70% 25.38% 34.91% over $91,831 up to $142,353 43.41% 21.70% 25.38% 33.46%
over $144,489 up to $150,000 46.41% 23.20% 29.52% 38.39% over $142,353 up to $150,000 46.41% 23.20% 29.52% 36.97%
over $150,000 up to $205,842 47.97% 23.98% 31.67% 40.20% over $150,000 up to $202,800 47.97% 23.98% 31.67% 38.80%
over $205,842 up to $220,000 51.97% 25.98% 37.19% 44.84% over $202,800 up to $220,000 51.97% 25.98% 37.19% 43.48%
over $220,000 53.53% 26.76% 39.34% 46.65% 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 taxable 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% in 2017, and 16% in 2018.
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

2018 2017
Surtax rate (included in above rates) 20% 36% Surtax rate (included in above rates) 20% 36%
Surtax is on ON tax greater than $4,638 $5,936 Surtax is on ON tax greater than $4,556 $5,831
Person with only basic personal amount - surtax starts at taxable income of $75,657 $89,131 Person with only basic personal amount - surtax starts at taxable income of $74,313 $87,559

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

2018 Personal Amount 2018 Tax Rate 2017 Personal Amount 2017 Tax Rate
$10,354 5.05% $10,171 5.05%

Federal Basic Personal Amount

2018 Personal Amount 2018 Tax Rate 2017 Personal Amount 2017 Tax Rate
$11,810 15% $11,635 15%

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Revised: November 15, 2017

 

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