Here is an updated summary of the combined federal and Ontario personal income tax brackets for 2026, based on the latest changes announced for 2025 and the planned reduction in the lowest federal rate to 14% for 2026:
Ontario Combined Federal Tax Brackets for 2026
Taxable Income | Combined Marginal Rate (approx.) | Notes |
|---|---|---|
Up to ~$53,000 | ~19.0% | Federal: 14% + Ontario: 5.05% |
$53,001 to ~$114,750 | ~29.7% | Federal: 20.5% + Ontario: 9.15% |
$114,751 to ~$177,882 | ~36.2% | Federal: 26% + Ontario: 11.16% |
$177,883 to ~$220,000 | ~43.2% | Federal: 29% + Ontario: 12.16% |
Over $220,000 | ~46.2%-53.5% | Federal: 33% + Ontario: 13.16%, incl. surtaxes |
- The brackets are indexed for inflation, so exact cut-offs may vary slightly in 2026 but the structure will be similar.
- These rates apply to regular income (salary, RRSP withdrawals, RRIF withdrawals, etc.).
- Ontario’s basic personal amount for 2025 is $12,747 (tax-free threshold is typically close to this).
- Federal rate on the first income bracket drops to 14% for 2026 (down from 15% in 2024/25).
This means in Ontario, for 2026, withdrawing RRSP funds while staying under each bracket can minimize taxes. For most low-income years, up to ~$12,747 is federally/provincially tax free, and up to ~$53,000 is taxed at the lowest marginal rates.