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Home  ->  Ontario

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

Ontario 2023 and 2022 Tax Rates & Tax Brackets

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.

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%
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.

 

TaxTips.ca
Ontario Surtaxes
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.

 

TaxTips.ca
Ontario Basic Personal Amount
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.

Copyright © 2002 Boat Harbour Investments Ltd.

Revised: November 30, 2022

 

Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from TaxTips.ca

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