Tax · marginal rate
Marginal Tax Rate Calculator
Your tax rate on the next dollar of salary, capital gains and dividends, in any province.
Your income
Ontario marginal tax rates 2026
Combined federal and Ontario income tax on the next dollar, including the Ontario surtax.
| Taxable income | Salary, interest | Capital gains | Eligible dividends | Non-eligible dividends |
|---|---|---|---|---|
| $30,000 | 19.05% | 9.53% | -8.24% | 8.09% |
| $50,000 | 19.05% | 9.53% | -8.24% | 8.09% |
| $60,000 | 29.65% | 14.82% | 6.39% | 20.28% |
| $80,000 | 29.65% | 14.82% | 6.39% | 20.28% |
| $100,000 | 31.48% | 15.74% | 8.92% | 22.38% |
| $120,000 | 43.41% | 21.70% | 25.38% | 36.10% |
| $160,000 | 44.97% | 22.48% | 27.53% | 37.90% |
| $210,000 | 48.26% | 24.13% | 32.08% | 41.69% |
| $260,000 | 53.53% | 26.76% | 39.34% | 47.74% |
What your marginal tax rate means
Your marginal rate is the tax on your next dollar of income. It decides how much a raise, a bonus or an RRSP deduction is really worth: at a 29.65% rate, a $1,000 raise leaves $703.50, and a $1,000 RRSP contribution saves $296.50.
Your average rate, total tax divided by income, is always lower, because each rate only applies to the income inside its bracket. Capital gains are half taxed, so their rate is half the salary rate; dividends get a tax credit, so eligible dividends can be taxed at very low or even negative rates at lower incomes.
See every bracket on the Ontario tax brackets page, or your full tax with the income tax calculator. Put your rate to work with the RRSP calculator.
Frequently asked questions
What is the marginal tax rate in Ontario in 2026?
It depends on your income: about 19.05% at $50,000, 31.48% at $100,000 and 53.53% above about $258,000 (federal plus Ontario).
What is the difference between marginal and average tax rate?
The marginal rate applies to your next dollar; the average rate is your total tax divided by your income. Moving into a higher bracket only raises the rate on income above the threshold.
How are capital gains taxed at my marginal rate?
Half of a capital gain is taxable, so the effective rate is half your marginal rate: about 14.8% on gains if your salary rate is 29.65%.
Why is my dividend tax rate negative?
The dividend tax credit can be larger than the tax on grossed-up eligible dividends at lower incomes, so extra dividends reduce tax on your other income.
Keep planning your taxes
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