What it costs to live and work in Ontario: the minimum wage, provincial income tax, sales tax and rent, from official sources, and what they mean for your monthly budget.
| Ontario | Source | |
|---|---|---|
| General minimum wage | $17.95 an hour | Government of Ontario: Your guide to the Employment Standards Act, minimum wage |
| Provincial income tax | 5.05 % to 13.16 % | Canada Revenue Agency: Canadian income tax rates for individuals, current year (2026 provincial rates) |
| Sales tax | 13 % HST | Canada Revenue Agency: GST/HST calculator (and rates) |
| Rent (CMHC Rental Market Survey, average monthly rent of a 2-bedroom unit in purpose-built rental row houses and apartments, province-wide (centres of 10,000+), October 2025) | $1,821 a month (2025) | CMHC Housing Market Information Portal: Ontario, Rental Market Statistics Summary, October 2025 Rental Market Survey (row and apartment, 2 bedroom) |
Ontario's general minimum wage is $17.95 an hour since October 1, 2026, up from $17.60. It rises every October 1 with Ontario's consumer price index, as the Employment Standards Act requires; the student rate is $16.90.
Ontario has five brackets for 2026: 5.05 % on the first $53,891, rising to 13.16 % on income above $220,000. On top of that comes an Ontario surtax on higher provincial tax and the Ontario Health Premium. The basic personal amount is $12,989.
Ontario charges a single 13 % harmonized sales tax (5 % federal and 8 % provincial).
What income does rent in Ontario take?
A common guideline is to keep housing at or below 30 % of gross income. At $1,821 a month, that means a household income of about $72,800 a year before tax.
Good to know
- Ontario residents with taxable income over $20,000 pay the Ontario Health Premium through their income tax, from $300 up to a maximum of $900 a year above $200,000.
Sources
- Government of Ontario: Your guide to the Employment Standards Act, minimum wage (2026-10)
- Canada Revenue Agency: Canadian income tax rates for individuals, current year (2026 provincial rates) (2026-06-25)
- Canada Revenue Agency: T4127 Payroll Deductions Formulas, 122nd edition, effective January 1, 2026 (Table 8.2, provincial basic personal amounts) (2025-12-03)
- Canada Revenue Agency: GST/HST calculator (and rates) (2025-04-01)
- CMHC Housing Market Information Portal: Ontario, Rental Market Statistics Summary, October 2025 Rental Market Survey (row and apartment, 2 bedroom) (2025-12)