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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 2015 and 2016 Personal Marginal Income Tax Rates

The Federal tax rates for 2016 are as stated in the Liberal platform.  The Ontario tax brackets, personal amount and surtax amounts were increased for 2016 by an indexation factor of 1.015, except for the $150,000 and $220,000 amounts, which are not indexed, as per the ON 2014 budget.  The Federal tax brackets and personal amount were increased for 2016 by an indexation factor of 1.013.  The indexation factors and increases to tax brackets have been confirmed to Canada Revenue Agency information, but the 2016 Federal tax rates have not yet been confirmed.

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 government would have to make legislative amendments in order for this to change.

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

Ontario Personal Income Tax Brackets and Tax Rates

2016 Taxable Income 2016 Tax Rates 2015 Taxable Income 2015 Tax Rates
first $41,536 5.05% first $40,922 5.05%
over $41,536 up to $83,075 9.15% over $40,922 up to $81,847 9.15%
over $83,075 up to $150,000 11.16% over $81,847 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

2016 Taxable Income 2016 Marginal Tax Rates 2015 Taxable Income 2015 Marginal Tax Rates
Other
Income
Capital
Gains
Canadian Dividends Other
Income
Capital
Gains
Canadian Dividends
Eligible Non-Eligible Eligible Non-Eligible
first $41,536 20.05% 10.03% -6.86% 6.13% first $40,922 20.05% 10.03% -6.86% 5.35%
over $41,536 up to $45,282 24.15% 12.08% -1.20% 10.93% over $40,922 up to $44,701 24.15% 12.08% -1.20% 10.19%
over $45,282 up to $73,145 29.65% 14.83% 6.39% 17.37% over $44,701 up to $72,064 31.15% 15.58% 8.46% 18.45%
over $73,145 up to $83,075 31.48% 15.74% 8.92% 19.51% over $72,064 up to $81,847 32.98% 16.49% 10.99% 20.61%
over $83,075 up to $86,176 33.89% 16.95% 12.24% 22.33% over $81,847 up to $84,902 35.39% 17.70% 14.31% 23.45%
over $86,176 up to $90,563 37.91% 18.95% 17.79% 27.03% over $84,902 up to $89,401 39.41% 19.70% 19.86% 28.19%
over $90,563 up to $140,388 43.41% 21.70% 25.38% 33.46% over $89,401 up to $138,586 43.41% 21.70% 25.38% 32.91%
over $140,388 up to $150,000 46.41% 23.20% 29.52% 36.97% over $138,586 up to $150,000 46.41% 23.20% 29.52% 36.45%
over $150,000 up to $200,000 47.97% 23.98% 31.67% 38.80% over $150,000 up to $220,000 47.97% 23.98% 31.67% 38.29%
over $200,000 up to $220,000 51.97% 25.98% 37.19% 43.48% over $220,000 49.53% 24.76% 33.82% 40.13%
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% for 2016, 18% for 2015.
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

2016 2015
Surtax rate (included in above rates) 20% 36% Surtax rate (included in above rates) 20% 36%
Surtax is on ON tax greater than $4,484 $5,739 Surtax is on ON tax greater than $4,418 $5,654
Person with only basic personal amount - surtax starts at taxable income of $73,145 $86,176 Person with only basic personal amount - surtax starts at taxable income of $72,064 $84,902

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).

Ontario Basic Personal Amount

2016 Personal Amount 2016 Tax Rate 2015 Personal Amount 2015 Tax Rate
$10,011 5.05% $9,863 5.05%

Federal Basic Personal Amount

2016 Personal Amount 2016 Tax Rate 2015 Personal Amount 2015 Tax Rate
$11,474 15% $11,327 15%

 

Revised: December 09, 2015

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