Personal Federal tax rate 2025

• Lowest bracket: 14.50% on the first $57,375 of taxable income
• Next bracket: 20.50% on income between $57,375 and $114,750
• Then: 26% on income between $114,750 and $177,882
• Then: 29.32% on income between $177,882 and $253,414
• 33% on all income over $253,414

Each province and territory applies its own tax, on top of the federal tax. Non-residents who are required to file a tax return in Canada pay an additional federal premium in place of the provincial amount.

Ontario Tax Rates for 2025

• $0 to $52,886 of taxable income (5.05%)
• The portion of income between $52,886 and $105,775 (9.15%)
• The portion of income between $105,775 and $150,000 (11.16%)
• The portion of income between $150,000 and $220,000 (12.16%)
• The portion of income over $220,000 (13.16%)
• The top rate an individual in Ontario can expect to pay, combining both federal and provincial taxes, is roughly 53.53 %.

Ontario Health Premium

Ontario also has a Health Tax Premium. In addition to income taxes, you pay the health premium if you are a resident of Ontario, and your employment or pension income is more than $20,000 a year. In most cases the premium is automatically deducted from your pay or pension. If you are self-employed, it will be calculated at the time of tax preparation. The health premium runs anywhere between $300 to a maximum of $900 and is based on taxable income.

Canada Pension Plan Contributions

If employed, Canada Pension Plan contributions (CPP) will be withheld from your pay cheques. If self-employed, CPP will be calculated at the time of filing your tax return. The rate for self-employed contributions is close to 11% of net self-employment income (after all expenses are deducted) to a maximum of $8,860.20. Keep this in mind if you do not have CPP withheld at source as it is a significant amount of money!

Basic Personal Amount

This is the amount of income you may earn before income tax kicks in. In 2025 the basic personal amount increased to $16,129. This means, the first $16,129 is not taxed.