Personal Tax

Combined Federal + Ontario Personal Tax Rates — 2026

Approximate marginal rates for Ontario residents (includes federal + provincial tax and surtax). Dividend and capital‑gain columns reflect percentages of actual dividends received and total capital gains.

Taxable income band	Other income	Capital gains	Eligible dividends	Non‑eligible dividends
Up to $53,891	≈19.05%	≈9.53%	≈−8.24%	≈8.09%
$53,892 – $58,523	≈23.15%	≈11.58%	≈−2.58%	≈12.80%
$58,524 – $94,907	≈29.65%	≈14.83%	≈6.39%	≈20.28%
$94,908 – $107,785	≈31.48%	≈15.74%	≈8.92%	≈22.38%
$107,786 – $111,814	≈33.89%	≈16.95%	≈12.24%	≈25.16%
$111,815 – $117,045	≈37.91%	≈18.95%	≈17.79%	≈29.78%
$117,046 – $150,000	≈43.41%	≈21.70%	≈25.38%	≈36.10%
$150,001 – $181,440	≈44.97%	≈22.48%	≈27.53%	≈37.90%
$181,441 – $220,000	≈48.26%	≈24.13%	≈32.07%	≈41.68%
$220,001 – $258,482	≈49.82%	≈24.91%	≈34.22%	≈43.47%
Over $258,482	≈53.53%	≈26.76%	≈39.34%	≈47.74%

Marginal rates change only for the portion of income that falls within each band. Figures are approximate and may vary slightly with rounding and the Basic Personal Amount phase‑out at higher incomes. For personalized guidance, contact HMID LLP.

Sources: TaxTips.ca — Ontario combined rates (2026), TaxTips.ca — Federal context (2026).

CRA Key Rates — 2026

Meals & Travel Allowances 2026

Simplified meal claims (CRA) and travel allowances commonly referenced by employers and individuals.

Item	Rate / Limit
Meal allowance — Simplified method (per person)	$23 per meal (max $69/day)
Automobile allowance (employee, tax‑free) (2025 confirmed)	$0.72/km (first 5,000 km); $0.66/km (additional km)
Government travel — NJC meal total (Canada, Day 1–30)	$119.40/day (breakfast/lunch/dinner combined)

2026 per‑km amounts: CRA’s prescribed automobile allowance rates for 2026 will be posted by CRA; update the above when published.
NJC allowances: NJC rates (used by federal travel) are reviewed semi‑annually; the Canada Day 1–30 meal total shown reflects the Oct 1, 2025 update.

RRSP Limits 2026

Annual RRSP dollar limit and basic rule for determining personal contribution room.

Item	Limit
RRSP dollar limit (2026)	$33,810
Personal limit rule	Lesser of 18% of prior year earned income (2025) or the annual dollar limit

Lifetime Capital Gains Exemption (LCGE)

Qualified Small Business Corporation (QSBC) shares; indexation resuming for 2026.

Item	Amount / Note
LCGE for QSBC shares	$1,250,000 (for dispositions on/after June 25, 2024)
Indexation	Indexed annually; 2026 figure to be confirmed by CRA

Keep $1,250,000 visible until CRA releases the indexed 2026 amount; then adjust the figure here.

Sources: CRA – Meal & vehicle rates (simplified method); NJC/CRA – Travel meal allowances; CRA – Registered plan limits; CRA – Capital gains & LCGE updates.

Canada Revenue Agency (www.cra.gc.ca)

toll-free in Canada and the U.S. 1-800-959-8281 (Personal)

toll-free in Canada and the U.S. 1-800-959-5525 (Business)