The Ontario tax brackets and personal tax credit amounts are increased for 2023 by an indexation factor of 1.065 (6.5% increase), except for the $150,000 and $220,000 bracket amounts, which are not indexed for inflation.
The Federal tax brackets and personal tax credit amounts are increased for 2023 by an indexation factor of 1.063 (6.3% increase).
See Indexation of the Personal Income Tax System for how the indexation factors are calculated.
The indexation factors, tax brackets and tax rates for 2023 have been confirmed to Canada Revenue Agency information.
Tax Tip: read the article Understanding the Tables of Personal Income Tax Rates, especially if you are trying to compare the rates below to the marginal tax rates in the Basic Tax Calculator or the Detailed Tax Calculators.
| TaxTips.ca - Ontario Tax Rates | |||||||||
| 2023 Taxable Income | 2023 Tax Rates | 2022 Taxable Income | 2022 Tax Rates | ||||||
| first $49,231 | 5.05% | first $46,226 | 5.05% | ||||||
| over $49,231 up to $98,463 | 9.15% | over $46,226 up to $92,454 | 9.15% | ||||||
| over $98,463 up to $150,000 | 11.16% | over $92,454 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% | ||||||
| TaxTips.ca - Combined Federal & Ontario Tax Brackets and Tax Rates Including Surtaxes | |||||||||
| 2023 Taxable Income (1) | ON 2023 Marginal Tax Rates | 2022 Taxable Income (1) | ON 2022 Marginal Tax Rates | ||||||
| Other Income |
Capital Gains |
Canadian Dividends | Other Income |
Capital Gains |
Canadian Dividends | ||||
| Eligible | Non-Eligible | Eligible | Non-Eligible | ||||||
| first $49,231 | 20.05% | 10.03% | -6.86% | 9.24% | first $46,226 | 20.05% | 10.03% | -6.86% | 9.24% |
| over $49,231 up to $53,359 | 24.15% | 12.08% | -1.20% | 13.95% | over $46,226 up to $50,197 | 24.15% | 12.08% | -1.20% | 13.95% |
| over $53,359 up to $86,698 | 29.65% | 14.83% | 6.39% | 20.28% | over $50,197 up to $81,411 | 29.65% | 14.83% | 6.39% | 20.28% |
| over $86,698 up to $98,463 | 31.48% | 15.74% | 8.92% | 22.38% | over $81,411 up to $92,454 | 31.48% | 15.74% | 8.92% | 22.38% |
| over $98,463 up to $102,135 | 33.89% | 16.95% | 12.24% | 25.16% | over $92,454 up to $95,906 | 33.89% | 16.95% | 12.24% | 25.16% |
| over $102,135 up to $106,717 | 37.91% | 18.95% | 17.79% | 29.78% | over $95,906 up to $100,392 | 37.91% | 18.95% | 17.79% | 29.78% |
| over $106,717 up to $150,000 | 43.41% | 21.70% | 25.38% | 36.10% | over $100,392 up to $150,000 | 43.41% | 21.70% | 25.38% | 36.10% |
| over $150,000 up to $165,430 | 44.97% | 22.48% | 27.53% | 37.90% | over $150,000 up to $155,625 | 44.97% | 22.48% | 27.53% | 37.90% |
| over $165,430 up to $220,000 | 48.29% | 24.14% | 32.11% | 41.72% | over $155,625 up to $220,000 | 48.35% | 24.17% | 32.19% | 41.79% |
| over $220,000 up to $235,675 | 49.85% | 24.92% | 34.26% | 43.51% | over $220,000 up to $221,708 | 49.91% | 24.95% | 34.34% | 43.58% |
| over $235,675 | 53.53% | 26.76% | 39.34% | 47.74% | over $221,708 | 53.53% | 26.76% | 39.34% | 47.74% |
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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 15%. 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 25%. Copyright © 2002 Boat Harbour Investments Ltd. |
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TaxTips.ca Ontario Surtaxes |
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| 2023 | 2022 | ||||||||
| Surtax rate (included in above rates) | 20% | 36% | Surtax rate (included in above rates) | 20% | 36% | ||||
| Surtax is on ON tax greater than | $5,315 | $6,802 | Surtax is on ON tax greater than | $4,991 | $6,387 | ||||
| Person with only basic personal amount - surtax starts at taxable income of | $86,698 | $102,135 | Person with only basic personal amount - surtax starts at taxable income of | $81,411 | $95,906 | ||||
| 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. |
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TaxTips.ca Ontario Basic Personal Amount |
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| 2023 Personal Amount | 2023 Tax Rate | 2022 Personal Amount | 2022 Tax Rate | ||||||
| $11,865 | 5.05% | $11,141 | 5.05% | ||||||
| Federal Basic Personal Amount | |||||||||
| 2023 Personal Amount (1) | 2023 Tax Rate | 2022 Personal Amount (1) | 2022 Tax Rate | ||||||
| $15,000 | 15% | $14,398 | 15% | ||||||
(1) See the federal tax rates page for information on the enhanced federal personal amount, which increases the marginal tax rates for taxable incomes in the second highest federal tax bracket. The marginal tax rates in blue above have been adjusted to reflect these changes.