A rough comparison of income tax in Ontario for 2026. It shows a range, never an exact figure, because many real-world factors are left out.
This tool ignores many factors that change the answer. Do not choose a structure from it. Ask me to model your actual numbers.
Assumptions: please read
- Ontario resident, 2026 tax year, no other income, and only the basic personal amount as a credit.
- Sole proprietor: all profit is taxed personally at 2026 federal and Ontario rates, including Ontario surtax.
- Corporation: a Canadian-controlled private corporation with active business income taxed at the 9% federal small business rate plus the Ontario small business rate (3.2% to June 30, 2026 and 2.2% from July 1, 2026; the first option blends these by days). Income over $500,000 uses the general rates (15% federal, 11.5% Ontario). Profit is assumed to qualify for the small business deduction.
- Money paid out is treated as non-eligible dividends with the 15% gross-up and the federal and Ontario dividend tax credits. No salary is modelled.
- Not included: CPP and EI, the Ontario Health Premium, other credits and deductions, passive income rules, HST, personal services business rules, family income splitting, tax on future sale of shares, professional corporation rules, incorporation and annual compliance costs.
- Results are shown as a range of 10% either side, rounded.
Estimates only. Not tax advice. This tool gives general information and rough figures based on the inputs you enter. It cannot see your full facts. Please speak with a qualified professional before you act on a result. Everything runs in your browser: nothing you enter is sent to me or stored.
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Sources (figures checked October 14, 2026)
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