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What a $5,000 RRSP deduction saves in Ontario at incomes from $30,000 to $250,000, the exact 2026 combined marginal rates, and the provincial rules behind each number.
A guide, not advice.
This page explains general rules. Do your own research, confirm your numbers with the CRA (your My Account and Notice of Assessment are the official record) or the other official sources listed at the end, and talk to a qualified professional before acting.
Ontario taxes income in 5 provincial brackets (5.05%, 9.15%, 11.16%, 12.16%, 13.16%), with the top rate starting above $220,000. Combined with federal tax, the top marginal rate is 53.53% on taxable income over $258,482.
Two extras make Ontario's real marginal rates lumpier than its bracket table. The Ontario surtax is a tax on provincial tax: once basic Ontario tax passes $5,818, 20% of the excess is added, and a further 36% above $7,446. For a single filer claiming only the basic personal amount, that starts at about $94,901 and $111,809 of taxable income. The Ontario Health Premium, collected on the tax return, climbs in steps from $0 to $900.
An RRSP deduction lowers taxable income before the brackets, the surtax and the premium are worked out, so in the surtax range a deduction saves more than the bracket rates alone imply. At $100,000 the federal and Ontario bracket rates add up to 29.65%, but the combined marginal rate is 31.48%.
At $70,000 of taxable income, a $5,000 deduction saves $1,483 in Ontario, which ranks 9 of 13 provinces and territories. The same deduction saves $1,858 in Nova Scotia and $1,375 in Nunavut.
What an RRSP deduction saves in Ontario at each income
2026 federal plus provincial income tax, before and after the deduction. Taxable income is before the RRSP deduction.
Taxable income
Tax before
Average rate
Marginal rate
Saving on $5,000
Saving on $10,000
$30,000
$3,056
10.2%
19.05%
$952
$2,451
$40,000
$5,111
12.8%
19.05%
$1,103
$2,055
$50,000
$7,166
14.3%
19.05%
$1,103
$2,055
$60,000
$9,417
15.7%
29.65%
$1,254
$2,251
$70,000
$12,382
17.7%
29.65%
$1,483
$2,965
$80,000
$15,497
19.4%
29.65%
$1,483
$3,115
$90,000
$18,462
20.5%
29.65%
$1,483
$2,965
$100,000
$21,521
21.5%
31.48%
$1,574
$3,058
$125,000
$30,773
24.6%
43.41%
$2,170
$4,228
$150,000
$41,626
27.8%
43.41%
$2,170
$4,341
$200,000
$64,722
32.4%
48.26%
$2,413
$4,826
$250,000
$89,472
35.8%
49.82%
$2,491
$4,982
The saving on $10,000 is rarely exactly double the saving on $5,000, because the second $5,000 comes off income that is taxed at whatever rate applies lower down. Usually that rate is lower, so each extra dollar is worth a little less. Where a credit, reduction or premium phases in below you, it can be higher: at $30,000, deducting $10,000 saves $2,451, more than twice the $952 saved by $5,000. The biggest step up in value per dollar comes between $100,000 and $125,000, where the saving on $5,000 rises from 31.5% to 43.4% of the amount deducted.
RRSP refund estimator
Compares 2026 annual tax before and after your RRSP deduction, including bracket crossings, basic personal amounts, Ontario surtax and health premium, BC and Ontario tax reductions, and the Quebec abatement.
Use income after other deductions. Claim no more than your CRA RRSP deduction limit. The model assumes net income equals taxable income before this deduction. Savings reduce tax owing; your cash refund also depends on tax already withheld.
Deduction limit and other credits
Credit reductions are dollars of tax, not claim amounts, and stay fixed in both scenarios. In employment mode the CPP/QPP, EI, QPIP and Canada employment amount credits are already included, so enter only other credits here.
Estimated income tax savings$1,483
Average savings rate
29.65%
Tax before deduction
$12,382
Tax after deduction
$10,900
Federal $8,243 and provincial $4,140 tax before the deduction, using verified 2026 rates.
Not modelled: dependant and age credits, other provincial tax reductions, refundable benefits and clawbacks, alternative minimum tax, and Quebec health and drug-plan premiums. Those need a full tax return.
Combined 2026 marginal tax rates in Ontario
The rate on the next dollar of taxable income, including federal and provincial basic personal amounts, the surtax, the tax reduction and the Health Premium. A deduction in a band saves roughly this rate on each dollar that stays inside the band.
Taxable income
Combined marginal rate
Up to $16,452
0%
$16,452 to $18,930
14%
$18,930 to $20,000
24.1%
$20,000 to $24,871
30.1%
$24,871 to $25,000
25.05%
$25,000 to $36,000
19.05%
$36,000 to $38,500
25.05%
$38,500 to $48,000
19.05%
$48,000 to $48,600
44.05%
$48,600 to $53,891
19.05%
$53,891 to $58,523
23.15%
$58,523 to $72,000
29.65%
$72,000 to $72,600
54.65%
$72,600 to $94,902
29.65%
$94,902 to $107,785
31.48%
$107,785 to $111,810
33.89%
$111,810 to $117,045
37.91%
$117,045 to $150,000
43.41%
$150,000 to $181,440
44.97%
$181,440 to $200,000
48.26%
$200,000 to $200,600
73.26%
$200,600 to $220,000
48.26%
$220,000 to $258,482
49.82%
Over $258,482
53.53%
Narrow bands such as $24,871 to $25,000 and $48,000 to $48,600 are where a credit, reduction or premium phases in or out over a short range. They are real, but because they are only a few hundred dollars wide they rarely change the value of a deduction of more than a few thousand dollars.
Ontario provincial brackets for 2026
Taxable income
Provincial rate
Up to $53,891
5.05%
$53,891 to $107,785
9.15%
$107,785 to $150,000
11.16%
$150,000 to $220,000
12.16%
Over $220,000
13.16%
Ontario tax starts from a $12,989 basic personal amount, credited at the lowest provincial rate of 5.05%.
Ontario surtax adds 20% of basic Ontario tax above $5,818 and a further 36% above $7,446. An RRSP deduction reduces the surtax as well as the tax it is based on.
The Ontario Health Premium starts at $20,000 of taxable income and rises in steps to $900. Each step phases in over a short range, which shows up as brief spikes in the marginal-rate table.
The Ontario tax reduction ($600 for a single person with no dependants) removes provincial tax entirely at very low incomes.
Federal tax uses the 2026 federal brackets (14%, 20.5%, 26%, 29%, 33%) and a basic personal amount of up to $16,452, reduced for net income between $181,440 and $258,482.
A deduction is worth the most when it pulls income back below a point where the combined rate rises sharply. Between $25,000 and $260,000, the largest increases in Ontario are:
$36,000: from 19.05% to 25.05%, because the Ontario Health Premium steps up over the next few thousand dollars.
$58,523: from 23.15% to 29.65%, because a new federal bracket starts.
$117,045: from 37.91% to 43.41%, because a new federal bracket starts.
If your taxable income is a few thousand dollars above $117,045, for example, the first dollars you deduct are saved at 43.41%, and only the part of the deduction that takes you below $117,045 is saved at the lower 37.91%.
How these numbers are calculated
Each saving is the difference between two full 2026 tax calculations for a single filer with no dependants, before and after the deduction, using the federal and Ontario basic personal amounts, the Ontario surtax, tax reduction and Health Premium. It is a change in tax owed; whether you see it as a refund depends on tax withheld during the year. For what the estimate leaves out and how the deadline and limit work, see RRSP savings by province and the RRSP explained.
Questions about RRSP savings in Ontario
How much does a $5,000 RRSP contribution save in Ontario in 2026?
It depends on taxable income. Deducting $5,000 saves about $1,103 at $50,000, $1,483 at $70,000, $1,574 at $100,000, $2,170 at $150,000 of 2026 federal and provincial income tax, assuming no other deductions or credits beyond the basic personal amounts.
What is the top combined marginal tax rate in Ontario for 2026?
53.53% on taxable income over $258,482, combining the top federal rate with Ontario's top provincial rate and surtax.
This page is based on publications from the CRA, last checked against them on . The full list is below, and the official source always takes precedence over anything written here.
It is a general guide, not financial, tax or legal advice. Do your own research, confirm your own numbers in CRA My Account or with the official source, and talk to a qualified professional before making a decision. Canadian Financials is independent and is not affiliated with or endorsed by the CRA or any government.