1. What is Net Salary?

Net salary (take-home pay) is the amount an employee receives after all deductions from gross salary, including federal and provincial taxes, CPP, EI, and other mandatory deductions in Ontario.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax - Calculated using progressive 2024 tax brackets
• Ontario Tax - Calculated using Ontario's 2024 tax brackets
• CPP - Canada Pension Plan contribution (5.95% of pensionable earnings)
• EI - Employment Insurance premium (1.63% of insurable earnings)
• Health Premium - Ontario's income-based health tax
• Surtax - Additional tax on Ontario tax above certain thresholds

3. Ontario Tax Deductions Explained

Details: Ontario residents pay both federal and provincial income taxes, plus additional Ontario-specific deductions like the Health Premium and Surtax. The calculator uses current 2024 rates and brackets.

4. Using the Calculator

Tips: Enter your annual gross salary in Canadian dollars. The calculator will show your estimated take-home pay after all mandatory deductions.

5. Frequently Asked Questions (FAQ)

Q1: Are these calculations accurate for all Ontario residents?
A: This provides estimates for most Ontario employees. Special cases (self-employed, multiple jobs, tax credits) may differ.

Q2: Why is my take-home pay less than expected?
A: Ontario has additional deductions like the Health Premium and Surtax that aren't present in other provinces.

Q3: Are CPP and EI deducted from the full salary?
A: No, CPP is only deducted on earnings above $3,500 up to $66,600. EI is deducted up to $61,500.

Q4: How often is the Health Premium deducted?
A: It's included in your provincial tax deductions throughout the year.

Q5: What's not included in this calculation?
A: This doesn't account for voluntary deductions (RRSP, benefits), bonuses, or tax credits you may qualify for.