2026 Tax Rates

2026 Combined Federal and Ontario Tax Brackets for Individuals

Taxable Income	Regular Income %	Ineligible (Private Corporation) Dividends %	Eligible Canadian Dividends %	Capital Gains %
$0 to $ 53,891	19.05	8.09	0.00	9.53
$ 53,892 to $ 58,523	23.15	12.80	0.00	11.58
$ 58,524 to $ 94,907	29.65	20.28	6.39	14.83
$ 94,908 to $107,785	31.48	22.38	8.92	15.74
$107,786 to $111,814	33.89	25.16	12.24	16.95
$111,815 to $117,045	37.91	29.78	17.79	18.95
$117,046 to $150,000	43.41	36.10	25.38	21.70
$150,001 to $181,440	44.97	37.90	27.53	22.48
$181,441 to $220,000	48.26	41.68	32.07	24.13
$220,001 to $258,482	49.82	43.47	34.22	24.91
$258,483 and up	53.53	47.74	39.34	26.76

(This table does not include the Ontario Health Premium)

Note that the 2026 federal basic personal amount (BPA) increased from $16,129 to $16,452 for taxpayers with net income of $181,440 or less. For income above this threshold, the additional BPA of $1,623 is gradually reduced until it becomes nil at net income of $258,482.

These estimates do not consider alternative minimum tax (AMT). For individuals, AMT is only calculated on income over $181,440 federally.

2026 Federal and Ontario Combined Corporate Income Tax Rates

Canadian Controlled Private Corporations		Other Corporations
Small Business Income (up to $500,000)	Investment Income**	General Manufacturing and Processing	General Active Business Income
12.20%	50.20%*	25.00%	26.50%

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2026 Tax Rates

2026 Combined Federal and Ontario Tax Brackets for Individuals

2026 Federal and Ontario Combined Corporate Income Tax Rates

*30.667% of investment income is eligible for refund at a rate of $1 for every $2.61 of dividends paid.

**Canadian taxable dividend income (not from a connected corporation) is taxed federally only under

Part IV at a rate of 38.33%. This tax is eligible for refund at a rate of $1 for every $2.61 of dividends paid.