how much is tax in ontario
In Ontario in 2026, you typically deal with two main kinds of tax in everyday life: sales tax (HST) and income tax. The short version: sales tax on most purchases is 13%, and income tax is a set of progressive brackets that depend on how much you earn.
HST (sales tax) in Ontario
For normal dayâtoâday âhow much is tax in Ontario?â most people mean HST on purchases.
- Ontario uses a Harmonized Sales Tax (HST) of 13% on most goods and services.
- That 13% is a combination of a 5% federal portion and an 8% provincial portion.
- Some items are zeroârated (taxed at 0%) or exempt (e.g., many basic groceries, some medical devices, certain financial services).
So if something costs 100 dollars before tax in Ontario, you usually pay 113 dollars at the till.
Provincial income tax rates (high level)
If you meant income tax instead of sales tax, Ontario has progressive provincial income tax brackets that sit on top of the federal brackets. For 2025â2026 the Ontario provincial rates themselves are commonly structured roughly as:
- Around 5.05% on the first slice of taxable income
- Then about 9.15% , 11.16% , 12.16% , and 13.16% in higher brackets as your income rises
On top of that, there are surtaxes at higher income levels that effectively push the real provincial rate up for middleâ and highâincome earners. When you add federal tax plus Ontario tax plus surtaxes, many middle earners end up with a combined marginal rate in the 20â30âsomething percent range, and higher earners can face combined marginal rates over 40%. Because of all these moving parts (federal + provincial + surtaxes + credits), most people rely on an online Ontario tax calculator to see:
- Estimated total tax
- Net (afterâtax) income
- Effective tax rate vs marginal tax rate
Context, âlatest news,â and forum chatter
In recent budgets Ontario has mostly kept the basic provincial percentage brackets the same but adjusted the income thresholds upward with inflation, and confirmed continued use of the surtax system rather than simplifying it into cleaner brackets. This has been a mild trending topic among Ontario workers and newcomers because:
- It feels like the published percentages look modest, but the surtaxes quietly increase the real bite at mid to high incomes.
- Online forums often point out âsticker shockâ when people first see the difference between their marginal rate and their takeâhome pay.
- There is recurring debate over whether Ontario should scrap the surtax structure and replace it with clearer plainâvanilla brackets.
If you tell what you specifically care aboutâshopping, salary of X dollars, or running a small businessâitâs possible to break down exactly how much tax youâd pay in Ontario under that scenario.