1. What is Ontario Salary Calculation?

The Ontario Salary Calculator estimates net pay after all mandatory deductions including federal and provincial taxes, Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, Ontario Health Premium, and surtax.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

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

3. Understanding Canadian Payroll Deductions

Details: Canadian payroll deductions include federal and provincial income taxes, mandatory pension contributions (CPP), employment insurance (EI), and in Ontario, additional health premiums and surtaxes.

4. Using the Calculator

Tips: Enter your annual gross salary in Canadian dollars. The calculator will estimate all deductions and your take-home pay based on 2023 tax rates and contribution limits.

5. Frequently Asked Questions (FAQ)

Q1: Are these calculations exact?
A: This provides estimates. Actual payroll deductions may vary based on additional factors like benefits, bonuses, or tax credits.

Q2: What's the basic personal amount?
A: For 2023, the federal basic personal amount is $15,000 and Ontario's is $11,865 (already factored into tax calculations).

Q3: Is CPP deducted on all income?
A: No, CPP is only deducted on earnings between $3,500 and $66,600 (2023 limits).

Q4: Who pays the Ontario Health Premium?
A: Residents with taxable income over $20,000 pay this premium, which scales with income up to $900.

Q5: Are these rates current?
A: This calculator uses 2023 rates. Tax brackets and contribution limits are indexed annually.