1. What is the Ontario Salary Tax Calculator?

The Ontario Salary Tax Calculator estimates your total tax burden for 2025-2026 based on your income and employment status. It calculates Federal Tax, Ontario Provincial Tax, CPP, EI, Ontario Health Premium, and Surtax.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax — Based on 2025 federal tax brackets
• Ontario Provincial Tax — Based on 2025 Ontario tax brackets
• CPP — Canada Pension Plan contributions (5.95% of pensionable earnings up to $66,600 in 2025)
• EI — Employment Insurance premiums (1.66% of insurable earnings up to $61,500 in 2025)
• Ontario Health Premium — Based on income brackets
• Surtax — Additional tax on Ontario tax above certain thresholds

3. Components of Ontario Taxes

Federal Tax: Progressive tax rates from 15% to 33% based on income brackets.

Ontario Tax: Progressive tax rates from 5.05% to 13.16% based on income brackets.

CPP: Mandatory pension contribution unless exempt (self-employed pay both employee and employer portions).

EI: Employment insurance premiums unless exempt (certain types of employment are exempt).

4. Using the Calculator

Tips: Enter your annual income before taxes. Select whether you're exempt from CPP or EI (most employees are not exempt). The calculator will show your estimated tax burden and net income.

5. Frequently Asked Questions (FAQ)

Q1: Are these tax rates for 2025 confirmed?
A: These are projected rates based on current legislation and inflation adjustments. Actual 2025 rates will be confirmed by CRA.

Q2: What if I have tax credits or deductions?
A: This calculator provides a basic estimate. Actual taxes may be lower if you qualify for credits/deductions.

Q3: How often are CPP/EI rates updated?
A: Rates are adjusted annually based on legislation and maximum contribution limits.

Q4: What's the difference between tax brackets and tax rates?
A: Canada uses progressive taxation - different portions of your income are taxed at different rates.

Q5: Why is my Ontario tax higher than federal tax?
A: Ontario has higher provincial tax rates than some other provinces, especially at higher income levels.