Ontario Tax Rates for 2026

The top combined federal and Ontario marginal rate is 53.53% on taxable income over $258,482. Capital gains are taxed at half your marginal rate, up to 26.77%.

Marginal and capital gains rates by income

Ontario combined marginal and capital gains tax rates by taxable income, 2026
Taxable income	Marginal rate	Capital gains rate
Up to $53,891	19.05%	9.53%
$53,891 to $58,523	23.15%	11.58%
$58,523 to $94,901	29.65%	14.83%
$94,901 to $107,785	31.48%	15.74%
$107,785 to $111,810	33.89%	16.95%
$111,810 to $117,045	37.91%	18.96%
$117,045 to $150,000	43.41%	21.71%
$150,000 to $181,440	44.97%	22.49%
$181,440 to $220,000	47.97%	23.99%
$220,000 to $258,482	49.53%	24.77%
Over $258,482	53.53%	26.77%

Rates apply to the next dollar of taxable income above the basic personal amounts. Sources: CRA 2026 federal and provincial brackets, cross-checked against KPMG's 2026 table, including the Ontario surtax. Credits, the alternative minimum tax and income-tested benefits are not included. Estimates only, not tax advice.

Example: a $20,000 capital gain

With $120,000 of other taxable income in Ontario, half of the gain ($10,000) is added to your income. The extra federal and provincial tax is about $4,341, an effective rate of 21.70% on the gain. A capital loss of the same size in the same year would save about the same amount.

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Frequently asked questions

What is the top marginal tax rate in Ontario in 2026?

The top combined federal and provincial rate in Ontario is 53.53%, on taxable income over $258,482.

What is the capital gains tax rate in Ontario?

Half of a capital gain is taxable, so the rate on a gain is half of your marginal rate: from 9.53% on lower incomes up to 26.77% at the top.

How much tax would I pay on a $20,000 capital gain in Ontario?

With $120,000 of other taxable income, a $20,000 gain adds about $4,341 of federal and Ontario tax, an effective rate of 21.70% on the gain.