Ontario Tax Brackets 2025: Every Rate, Every Threshold
TaxCalc Canada Editorial
Published May 8, 2025 · Rates verified against CRA 2025 schedules
You accepted an offer for $100,000 in Ontario. You mentally planned around $8,333 a month. Then the first paycheque arrived and the number was different. This is the explanation.
Ontario tax brackets work the same way federal ones do: progressively. You pay 5.05% on the first portion of income, then a higher rate on the next slice, and so on. The key word is on that portion — moving into a higher bracket does not mean all your income is taxed at the new rate.
In 2025, Ontario has five provincial brackets. Federal tax sits on top of provincial tax. The combined rate is what actually comes out of your paycheque. Ontario also has a surtax — a tax on the tax — which quietly raises the effective rate for earners above roughly $90,000. Most paystub calculators include it automatically. Most people never know it exists.
Quick Answer
Ontario tax brackets 2025: 5.05% on income up to $52,886; 9.15% on $52,887–$105,775; 11.16% on $105,776–$150,000; 12.16% on $150,001–$220,000; and 13.16% above $220,000. The Ontario basic personal amount is $11,865. A surtax applies when provincial tax exceeds $5,554, raising the effective rate for incomes above ~$90,000.
How Ontario Income Tax Works
Ontario runs a parallel income tax system alongside the federal government. Both use the same taxable income figure — your gross income minus deductions like RRSP contributions. From that single number, two separate calculations happen: one for federal tax (paid to CRA), one for Ontario provincial tax (also collected by CRA, then forwarded to Queen's Park).
The basic personal amount (BPA) is the first credit that reduces your bill. In 2025, Ontario's BPA is $11,865. This is converted to a non-refundable credit at the lowest bracket rate: 5.05% × $11,865 = $599.18 off your calculated provincial tax. The federal BPA is higher at $16,129, which is why the federal credit reduces your bill by more.
The 2025 Ontario Provincial Tax Brackets
These are the provincial income tax brackets that apply to all Ontario residents in 2025. They apply to income remaining after deductions, and before the surtax calculation.
| Taxable Income | Provincial Rate | Notes |
|---|---|---|
| $0 – $52,886 | 5.05% | Base rate for most earners |
| $52,887 – $105,775 | 9.15% | Second bracket — nearly doubles |
| $105,776 – $150,000 | 11.16% | Third bracket |
| $150,001 – $220,000 | 12.16% | Fourth bracket |
| Over $220,000 | 13.16% | Top bracket |
Source: Ontario Ministry of Finance 2025
The jump from 5.05% to 9.15% at the $52,886 threshold is notable. An Ontario earner crossing that line pays nearly double the provincial rate on each additional dollar. This is why pension contributions and RRSP deductions have an outsized effect around this threshold — each dollar redirected lowers taxable income at the higher rate.
The Ontario Surtax: The Third Layer
Ontario has a surtax that no other province uses. It is exactly what it sounds like: a tax applied to the provincial tax you already owe. The CRA calculates it silently in the background, so most Ontarians only notice it as unexplained paycheque math.
Ontario tax > $5,554
+ 20% surtax
Kicks in around $85K–$90K income
Ontario tax > $7,108
+ 36% surtax
Additional tier, ~$100K+ income
The practical effect: an Ontario earner at $100,000 faces a combined marginal income tax rate of about 37.16% (federal + provincial), before the surtax. With surtax, the effective Ontario provincial rate is higher than the stated bracket rate. Our calculator applies the surtax automatically — no manual adjustment needed.
Combined Federal + Ontario Rates at a Glance
The number that actually matters for financial planning is the combined marginal rate — what you pay to both governments on each additional dollar earned. These are the 2025 combined rates for an Ontario employee with no additional deductions.
| Gross Salary | Marginal Rate | Effective Rate | Take-Home Pay |
|---|---|---|---|
| $60,000 | 29.65% | 14.3% | $47,078 |
| $80,000 | 29.65% | 17.9% | $60,536 |
| $100,000 | 37.16% | 20.4% | $74,492 |
| $120,000 | 37.16% | 22.9% | $87,383 |
Take-home pay includes CPP and EI deductions. Verified using the TaxCalc Canada calculator at 2025 rates. No RRSP. Employee only.
Take-Home Pay at Common Ontario Salary Levels
The gap between gross and net grows significantly as income rises — not just because of higher brackets, but because CPP contributions max out at $71,300 of earnings. Above that level, the full dollar goes to income tax with no CPP offset. Here is what different salary levels actually produce.
Gross
$60,000
Take-home
$47,078
78.5% retained
Gross
$80,000
Take-home
$60,536
75.7% retained
Gross
$100,000
Take-home
$74,492
74.5% retained
Gross
$120,000
Take-home
$87,383
72.8% retained
Use the Ontario tax calculator to get the exact number for your salary, including RRSP contributions and other deductions.
Calculate your Ontario take-home pay
Enter your salary and see federal tax, Ontario provincial tax, CPP, and EI broken down to the dollar.
Ontario Tax Calculator
How to Reduce Your Ontario Tax Bill
Ontario provincial tax is calculated on the same taxable income as federal tax. That means anything that reduces your federal taxable income also reduces Ontario tax. The most effective tool is an RRSP contribution.
At the $80,000 income level, the combined marginal rate is 29.65%. A $10,000 RRSP contribution saves approximately $2,965 in income tax — that is the federal and Ontario combined rate applied to the deduction. The 2025 RRSP limit is $32,490 (or 18% of your 2024 earned income, whichever is lower).
- RRSP contributions: Reduce federal and Ontario taxable income. Biggest impact for earners in the 9.15%+ provincial bracket.
- Pension income splitting: Shift pension income to a lower-earning spouse. Both pay tax at their individual marginal rates.
- Capital gains timing: Realizing capital gains in a lower-income year reduces the marginal rate applied to the gain.
- Ontario Trillium Benefit: A refundable credit for lower and middle-income Ontarians, combining the Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit, and Northern Ontario Energy Credit.
The difference between your marginal and effective tax rate is the gap that financial planning works in. Knowing your marginal rate tells you exactly what each deduction is worth.
Frequently Asked Questions
What are the Ontario income tax brackets for 2025?
Ontario has five provincial tax brackets in 2025: 5.05% on the first $52,886; 9.15% on $52,887–$105,775; 11.16% on $105,776–$150,000; 12.16% on $150,001–$220,000; and 13.16% on income over $220,000. The Ontario basic personal amount is $11,865.
What is the Ontario surtax and who pays it?
If your Ontario provincial tax before surtax exceeds $5,554, a 20% surtax applies to the excess. If it exceeds $7,108, an additional 36% applies. This affects earners with gross incomes above roughly $90,000.
What is the combined Ontario top marginal tax rate in 2025?
The combined top marginal rate in Ontario is approximately 53.53% — 33% federal plus 13.16% provincial, with the surtax adding further percentage points for the highest earners.
What is the marginal tax rate on an $80,000 salary in Ontario?
On $80,000 in Ontario, the combined marginal rate is 29.65% — 20.5% federal plus 9.15% provincial. Your effective income tax rate is lower at about 17.9%.
What is Ontario's basic personal amount for 2025?
Ontario's BPA for 2025 is $11,865, creating a non-refundable credit of $599.18 (5.05% × $11,865) that reduces provincial tax owing.
How much Ontario tax do I pay on $100,000?
On $100,000 in Ontario, provincial income tax is approximately $6,238 and federal tax approximately $14,158. After CPP ($4,034) and EI ($1,077), take-home pay is approximately $74,492.
Do Ontario tax brackets change every year?
Yes. Ontario indexes brackets and the BPA for inflation annually using the Ontario CPI. In most years, bracket thresholds rise 2–4%.
How do I reduce my Ontario income tax?
RRSP contributions are the most effective lever — they reduce federal and provincial taxable income at your marginal rate. The 2025 RRSP limit is $32,490 (or 18% of 2024 earned income).
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TaxCalc Canada Editorial Team
Our editorial team reviews Canadian federal and provincial tax rules annually. All rates are sourced directly from CRA publications and verified against our tax engine before publication.