Retirement planning for Ontario.
Real federal and Ontario tax brackets, RRSP meltdown planning, OAS clawback avoidance and CPP timing, all free. GAINS (Guaranteed Annual Income System).
Start with your situationOntario at a glance (2026)
- Top combined rate
- 53.53%
- Basic personal amount
- $12,989
- Bottom rate
- 5.05%
- OAS clawback starts
- $95,323
Ontario income tax rates (2026)
| Rate | Taxable income |
|---|---|
| 5.05% | up to $54,446 |
| 9.15% | $54,446 – $108,893 |
| 11.16% | $108,893 – $150,000 |
| 12.16% | $150,000 – $220,000 |
| 13.16% | over $220,000 |
Provincial rates are applied on top of federal rates.
GAINS (Guaranteed Annual Income System)
- Single maximum
- $996/yr
- Couple maximum
- $1,992/yr
Available to seniors 65+ with income below the threshold. Claws back at 50% of income. TFSA withdrawals do not count toward the clawback. cinder.fi models this automatically.
Ontario retirement planning insights
- Ontario's surtax adds an extra 20% on provincial tax over $5,315 and 36% over $6,802, which makes the effective top rate 53.53%, the second-highest in Canada
- RRSP meltdown in Ontario should target the $54,446 bracket boundary, where the combined federal+provincial rate jumps from ~20% to ~30% at that threshold
- The GAINS supplement provides up to $83/month for low-income seniors, but claws back at 50%. Drawing from your TFSA first preserves eligibility
- Ontario has no provincial sales tax credit for seniors, so managing income matters more for retirees near the OAS clawback threshold of $95,323
Frequently asked questions
What is the top tax rate in Ontario for retirees?
The top combined federal + Ontario rate is 53.53% on income over $220,000. This includes the Ontario surtax, which adds 20% on provincial tax above $5,315 and 36% above $6,802. Most retirees aim to keep income below $108,893 where the combined rate is around 33%.
What is the Ontario GAINS program?
The Guaranteed Annual Income System (GAINS) provides up to $83/month ($996/year) for low-income Ontario seniors age 65+. It claws back at 50% of income above the threshold. TFSA withdrawals don't count as income for GAINS, so drawing from a TFSA first is especially useful in Ontario.
Should I do an RRSP meltdown in Ontario?
Usually yes. Without meltdown, RRIF mandatory withdrawals at 72+ can push you into the 43-53% combined brackets. The best meltdown target in Ontario is usually the $54,446 bracket boundary, where the combined rate jumps from ~20% to ~30%. cinder.fi calculates the amount for your situation.
Related guides
Other provinces
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