The Federal tax brackets and personal amounts are increased for 2018 by an indexation factor of 1.015, and the Ontario brackets and amounts are increased by an indexation factor of 1.018, except for the $150,000 and $220,000 bracket amounts, which are not indexed for inflation, as per the Ontario 2014 Budget. The indexation factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.
The 2018 marginal tax rates for non-eligible dividends reflect the rates that are in effect automatically due to the change in the gross-up rate for 2018, as announced in the October 24, 2017 Fall Economic Statement. They have since been revised by the change in the non-eligible dividend tax credit rate announced in the Ontario November 14, 2017 Fall Economic Statement. The table below uses the rate as defined in Ontario’s Bill 177 tabled November 14th, which does not consider the changes in the gross-up rate for 2018 and 2019.
Please read the article Understanding the Tables of Personal Income Tax Rates.
Ontario Personal Income Tax Brackets and Tax Rates |
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| 2018 Taxable Income | 2018 Tax Rates | 2017 Taxable Income | 2017 Tax Rates | ||||||
| first $42,960 | 5.05% | first $42,201 | 5.05% | ||||||
| over $42,960 up to $85,923 | 9.15% | over $42,201 up to $84,404 | 9.15% | ||||||
| over $85,923 up to $150,000 | 11.16% | over $84,404 up to $150,000 | 11.16% | ||||||
| over $150,000 up to $220,000 | 12.16% | over $150,000 up to $220,000 | 12.16% | ||||||
| over $220,000 | 13.16% | over $220,000 | 13.16% | ||||||
Combined Federal & Ontario Tax Brackets and Tax Rates Including Surtaxes |
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| 2018 Taxable Income | 2018 Marginal Tax Rates | 2017 Taxable Income | 2017 Marginal Tax Rates | ||||||
| Other Income |
Capital Gains |
Canadian Dividends | Other Income |
Capital Gains |
Canadian Dividends | ||||
| Eligible | Non-Eligible | Eligible | Non-Eligible | ||||||
| first $42,960 | 20.05% | 10.03% | -6.86% | 8.00% | first $42,201 | 20.05% | 10.03% | -6.86% | 6.13% |
| over $42,960 up to $46,605 | 24.15% | 12.08% | -1.20% | 12.76% | over $42,201 up to $45,916 | 24.15% | 12.08% | -1.20% | 10.93% |
| over $46,605 up to $75,657 | 29.65% | 14.83% | 6.39% | 19.14% | over $45,916 up to $74,313 | 29.65% | 14.83% | 6.39% | 17.37% |
| over $75,657 up to $85,923 | 31.48% | 15.74% | 8.92% | 21.26% | over $74,313 up to $84,404 | 31.48% | 15.74% | 8.92% | 19.51% |
| over $85,923 up to $89,131 | 33.89% | 16.95% | 12.24% | 24.06% | over $84,404 up to $87,559 | 33.89% | 16.95% | 12.24% | 22.33% |
| over $89,131 up to $93,208 | 37.91% | 18.95% | 17.79% | 28.72% | over $87,559 up to $91,831 | 37.91% | 18.95% | 17.79% | 27.03% |
| over $93,208 up to $144,489 | 43.41% | 21.70% | 25.38% | 35.10% | over $91,831 up to $142,353 | 43.41% | 21.70% | 25.38% | 33.46% |
| over $144,489 up to $150,000 | 46.41% | 23.20% | 29.52% | 38.58% | over $142,353 up to $150,000 | 46.41% | 23.20% | 29.52% | 36.97% |
| over $150,000 up to $205,842 | 47.97% | 23.98% | 31.67% | 40.39% | over $150,000 up to $202,800 | 47.97% | 23.98% | 31.67% | 38.80% |
| over $205,842 up to $220,000 | 51.97% | 25.98% | 37.19% | 45.03% | over $202,800 up to $220,000 | 51.97% | 25.98% | 37.19% | 43.48% |
| over $220,000 | 53.53% | 26.76% | 39.34% | 46.84% | over $220,000 | 53.53% | 26.76% | 39.34% | 45.30% |
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Marginal tax rate for dividends is a % of actual dividends received (not grossed-up taxable amount). |
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Ontario Surtaxes |
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| 2018 | 2017 | ||||||||
| Surtax rate (included in above rates) | 20% | 36% | Surtax rate (included in above rates) | 20% | 36% | ||||
| Surtax is on ON tax greater than | $4,638 | $5,936 | Surtax is on ON tax greater than | $4,556 | $5,831 | ||||
| Person with only basic personal amount – surtax starts at taxable income of | $75,657 | $89,131 | Person with only basic personal amount – surtax starts at taxable income of | $74,313 | $87,559 | ||||
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The 36% surtax is in addition to the 20% surtax, for a total surtax of 56%. |
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