Our tax experts and partners have compiled the latest federal and provincial tax rates for Ontario for 2026. This guide includes corporate and personal income tax rates, combined top marginal rates, investment yields, and other relevant financial data for Ontario residents and Canadian businesses.
2026 Corporate Tax Rates by Province
| Province | Small Business (<$500K) | General Corporate | M&P Business | Investment Income CCPC (c) | |
|---|---|---|---|---|---|
| Other than Capital Gains | Capital Gains | ||||
| Ontario | 11.70% (e) | 26.50% | 25.00% | 50.17% | 25.09% |
| Quebec | 12.20% (d) | 26.50% | 26.50% | 50.17% | 25.09% |
| Alberta | 11.00% | 23.00% | 23.00% | 46.67% | 23.34% |
| British Columbia | 11.00% | 27.00% | 27.00% | 50.67% | 25.34% |
| Manitoba | 9.00% | 27.00% | 27.00% | 50.67% | 25.34% |
| New Brunswick | 11.50% | 29.00% | 29.00% | 52.67% | 26.34% |
| Newfoundland & Labrador | 11.50% | 30.00% | 30.00% | 53.67% | 26.84% |
| Nova Scotia | 10.50% (f) | 29.00% | 29.00% | 52.67% | 26.34% |
| Prince Edward Island | 10.00% (g) | 30.00% | 30.00% | 53.67% | 26.84% |
| Saskatchewan | 10.00% (h) | 27.00% | 25.00% | 50.67% | 25.34% |
| Federal | 9.00% (i) | 15.00% | 15.00% | 38.67% | 19.34% |
Notes:
- Ontario small business rate decreases to 2.2% effective July 1, 2026.
- Quebec small business rate applies to corporations with ≥5,500 employee hours; smaller corporations pay 20.5%.
- Nova Scotia small business limit increased to $700,000 as of April 1, 2025.
- Prince Edward Island small business limit increased to $600,000 as of July 1, 2025.
- Saskatchewan small business limit is $600,000 since January 1, 2018.
- Federal corporate tax reductions apply for qualifying zero-emission technology manufacturers.
2026 Combined Top Personal Tax Rates
| Province | Income | Eligible Dividends | Ineligible Dividends | Capital Gains |
|---|---|---|---|---|
| Ontario | 53.53% | 39.34% | 47.74% | 26.76% |
| Quebec | 53.31% | 40.11% | 48.70% | 26.65% |
| Alberta | 48.00% | 34.31% | 42.31% | 24.00% |
| British Columbia | 53.50% | 36.54% | 48.89% | 26.75% |
| Manitoba | 50.40% | 37.78% | 46.67% | 25.20% |
| New Brunswick | 52.50% | 32.40% | 46.83% | 26.25% |
| Newfoundland & Labrador | 54.80% | 46.20% | 48.96% | 27.40% |
| Nova Scotia | 54.00% | 41.58% | 49.99% | 27.00% |
| Prince Edward Island | 52.00% | 36.54% | 47.92% | 26.00% |
| Saskatchewan | 47.50% | 29.64% | 41.34% | 23.75% |
2026 Personal Income Tax Rates for Ontario Residents
Assumptions: Single taxpayer with no dependents, not including Ontario Health Premium.
| Taxable Income | Federal Tax | Federal Marginal Rate | Ontario Tax | Ontario Marginal Rate | Combined Tax | Eligible Dividend | Ineligible Dividend | Capital Gains |
|---|---|---|---|---|---|---|---|---|
| $12,989 | $0 | 5.05% | $0 | 14.00% | $0 | 0.00% | 8.09% | 9.53% |
| $53,891 | $2,086 | 9.15% | $5,241 | 14.00% | $7,307 | 0.00% | 12.80% | 11.58% |
| $58,523 | $2,496 | 9.15% | $5,890 | 20.50% | $8,379 | 6.39% | 20.28% | 14.83% |
| $94,907 | $5,819 | 10.99% | $13,349 | 20.50% | $19,167 | 8.92% | 22.38% | 15.74% |
| $107,785 | $7,233 | 13.39% | $15,989 | 20.50% | $23,221 | 12.24% | 25.16% | 16.95% |
| $150,000 | $14,420 | 18.97% | $26,455 | 26.00% | $40,875 | 27.53% | 37.90% | 22.48% |
| $258,482 | $35,600 | 20.53% | $57,201 | 33.00% | $92,802 | 39.34% | 47.74% | 26.76% |
2026 Select Investment Yields for Ontario Residents
| Interest Rate | After-Tax Equivalent: Eligible Dividend | Ineligible Dividend | Capital Gain |
|---|---|---|---|
| 4% | 3.06% | 3.56% | 2.54% |
| 6% | 4.60% | 5.34% | 3.81% |
| 8% | 6.13% | 7.11% | 5.08% |
| 10% | 7.66% | 8.89% | 6.35% |
Note: Based on 53.53% marginal tax rate for Ontario taxpayers.
2026 Sales Tax Rates Across Canada
| Province | GST | HST | PST | Total |
|---|---|---|---|---|
| Ontario | – | 13% | – | 13% |
| Quebec | 5% | – | 9.975% | 14.975% |
| Alberta | 5% | – | – | 5% |
| British Columbia | 5% | – | 7% | 12% |
| Manitoba | 5% | – | 7% | 12% |
| New Brunswick | – | 15% | – | 15% |
| Newfoundland & Labrador | – | 15% | – | 15% |
| Nova Scotia | – | 14% | – | 14% |
| Prince Edward Island | – | 15% | – | 15% |
| Saskatchewan | 5% | – | 6% | 11% |
Key Takeaways for Ontario Residents (2026)
- Small business corporate tax rates are decreasing slightly.
- Top combined personal income tax rate: 53.53% for Ontario.
- Dividends and capital gains are taxed more favorably than regular income.
- Investment income yields are significantly impacted by tax type.
- Sales tax in Ontario remains at 13% (HST).
