1. What is Ontario Salary Calculation?

The Ontario Salary Calculator estimates your net take-home pay after all mandatory deductions including federal and provincial taxes, CPP contributions, EI premiums, Ontario Health Premium, and surtax where applicable.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Federal Tax — Progressive rates from 15% to 33%
• Ontario Tax — Progressive rates from 5.05% to 13.16%
• CPP — 5.95% up to maximum pensionable earnings ($66,600 in 2023)
• EI — 1.66% up to maximum insurable earnings ($61,500 in 2023)
• Health Premium — Up to $900 based on income
• Surtax — Additional tax on Ontario tax over $5,407

3. Understanding Deductions

Details: Ontario has one of the highest combined tax rates in Canada. The progressive tax system means higher income is taxed at higher rates. Additional deductions like CPP and EI have annual maximums.

4. Using the Calculator

Tips: Enter your annual gross salary before any deductions. The calculator uses current 2023 tax rates and contribution limits.

5. Frequently Asked Questions (FAQ)

Q1: Are these calculations exact?
A: This provides an estimate. Actual deductions may vary based on additional factors like benefits, RRSP contributions, or tax credits.

Q2: When do tax brackets change?
A: Tax brackets are adjusted annually for inflation. This calculator uses 2023 rates.

Q3: Is the Ontario Health Premium deductible?
A: No, it's not deductible for federal tax purposes but is for Ontario tax purposes.

Q4: What's not included in this calculation?
A: Union dues, professional fees, additional provincial taxes (except surtax), or workplace benefits aren't included.

Q5: How often are CPP/EI rates updated?
A: These are typically adjusted each January based on average wage increases.