Retiring in Ontario: provincial tax, surtax, GAINS and senior programs
Ontario's provincial tax has five brackets plus a surtax that adds to provincial tax at higher incomes. This page explains the 2026 rules in plain words, what our estimate does and does not include, and the Ontario programs designed for older residents.
Ontario income tax in 2026
Retirement income — CPP, OAS, pension and RRIF withdrawals — is taxed by both Ottawa and Ontario. These are the 2026 provincial bracket rates; the Ontario basic personal amount is $12,989.
| Taxable income | Rate |
|---|---|
| $0 to $53,891 | 5.05% |
| $53,891 to $107,785 | 9.15% |
| $107,785 to $150,000 | 11.16% |
| $150,000 to $220,000 | 12.16% |
| Over $220,000 | 13.16% |
| Income | Federal | Ontario | Total | Average | Marginal |
|---|---|---|---|---|---|
| $30,000 | $1,897 | $859 | $2,756 | 9.2% | 19.1% |
| $50,000 | $4,697 | $1,869 | $6,566 | 13.1% | 19% |
| $75,000 | $9,268 | $3,997 | $13,265 | 17.7% | 29.6% |
| $100,000 | $14,393 | $6,378 | $20,771 | 20.8% | 31.5% |
Ontario's 2026 tax brackets
For 2026, Ontario charges 5.05% on taxable income up to $53,891, 9.15% up to $107,785, 11.16% up to $150,000, 12.16% up to $220,000 and 13.16% above that. The 2026 Ontario basic personal amount is $12,989.
Ontario also applies a surtax: an extra 20% of Ontario tax above $5,818, plus a further 36% of Ontario tax above $7,446 (2026 thresholds). The surtax raises the effective provincial rate for higher-income retirees. The bracket table and worked example on this page include the surtax.
What our Ontario estimate leaves out
Our tax estimates do not include the Ontario Health Premium, which is collected through the income tax return and rises with taxable income. Ontario residents with taxable income above the premium's starting threshold will pay somewhat more than the calculator shows.
The estimates also leave out the age amount, the pension income amount, dividend and capital gains treatment and other credits that depend on personal circumstances, so for many retirees the federal and Ontario figures before the Health Premium are somewhat higher than actual tax. Compare the calculator's figures with your most recent Notice of Assessment, and see the methodology page for the full list of assumptions.
The retirement tax calculator shows federal tax, Ontario tax with surtax, and your combined marginal rate. Add the Health Premium separately using the CRA or Ontario rules.
How Ontario tax meets retirement income
Between $53,891 and $58,523 of taxable income, a retiree crosses both the first Ontario step and the 2026 federal step from 14% to 20.5%. Higher up, the surtax and OAS recovery tax (15% of net income above $95,323 in 2026) can overlap.
That overlap is why RRIF withdrawal timing and pension income splitting attract attention. The OAS clawback tool and RRIF minimum tool help show where your income may land.
Ontario programs for older residents
The Ontario Guaranteed Annual Income System (GAINS) is a monthly, non-taxable payment on top of OAS and GIS for low-income seniors. For the 2026 benefit year (July 1, 2026 to June 30, 2027), the Government of Ontario lists up to $92 a month. OAS and GIS recipients do not apply separately, but they need to file a tax return each year.
The Ontario Seniors Dental Care Program provides free routine dental services to low-income seniors 65 or older without other dental benefits. The Ontario Senior Homeowners' Property Tax Grant helps lower- and moderate-income homeowners aged 64 or older with property tax, and is claimed on the ON-BEN form with the tax return.
What to check locally
- How much Ontario Health Premium applies at your expected taxable income.
- Whether you receive GIS, which is required for GAINS.
- Whether your income fits the current Ontario Seniors Dental Care Program limits.
- That you complete the ON-BEN form each year if you may qualify for the property tax grant.
- How the surtax affects your marginal rate if Ontario tax exceeds the 2026 thresholds.
Programs to look into
Ontario Guaranteed Annual Income System (GAINS)
A monthly, non-taxable top-up for low-income seniors who receive OAS and GIS. The Government of Ontario lists up to $92 a month for July 1, 2026 to June 30, 2027.
Ontario Seniors Dental Care Program
Free routine dental services, such as check-ups, cleanings and fillings, for low-income Ontario residents aged 65 or older without other dental benefits.
Ontario Senior Homeowners' Property Tax Grant
A grant toward property tax for lower- and moderate-income homeowners aged 64 or older, claimed on the ON-BEN form filed with the income tax return.
Eligibility and amounts change. Confirm details with the provincial government before applying.
Frequently asked questions
Does your Ontario tax estimate include the Health Premium?
What is the Ontario surtax?
Do I need to apply for GAINS?
Educational estimate, not advice. Results depend on your inputs and the assumptions listed. They are not a prediction of returns or a recommendation. Check benefit amounts in your My Service Canada Account and tax details with the CRA. Read the disclaimer.
Official sources
- CRA — Tax rates and income brackets for individuals (current year)
- CRA — T4127 Payroll Deductions Formulas (January 2026)
- Service Canada — OAS pension recovery tax
- CRA — Pension income splitting
- Government of Ontario — Guaranteed Annual Income System payments for seniors
- Government of Ontario — Dental care for low-income seniors
- Government of Ontario — Senior Homeowners' Property Tax Grant
Figures checked October 30, 2026. Rules and amounts change; confirm current details on the official pages above.