1. What is Net Salary?

Net salary (take-home pay) is the amount you receive after all deductions including federal/provincial taxes, CPP, EI, and other mandatory deductions in Ontario.

2. How Does the Calculator Work?

The calculator uses current Ontario tax brackets and deduction rates:

Where:

• Federal Tax - Progressive rates from 15% to 33%
• Ontario Tax - Progressive rates from 5.05% to 13.16%
• CPP - 5.95% of pensionable earnings up to $66,600
• EI - 1.63% of insurable earnings up to $61,500
• Health Premium - $0 to $900 based on income
• Surtax - Additional tax on Ontario tax above certain thresholds

3. Ontario Tax Breakdown

Details: Ontario has a progressive tax system with 5 brackets. The calculator also accounts for the Ontario Health Premium (ranging from $0 to $900) and surtax (20-36% on provincial tax over certain amounts).

4. Using the Calculator

Tips: Enter your annual gross salary in Canadian dollars. The calculator will show your estimated net salary along with detailed breakdown of all deductions.

5. Frequently Asked Questions (FAQ)

Q1: Are these rates up to date?
A: This calculator uses 2023 tax rates and brackets. Tax rates may change annually.

Q2: What's not included in this calculation?
A: Union dues, workplace benefits, RRSP contributions, and other voluntary deductions aren't included.

Q3: How often are CPP and EI rates updated?
A: These are typically adjusted annually based on maximum pensionable/insurable earnings.

Q4: Do I pay health premium if I have employer insurance?
A: Yes, the Ontario Health Premium is mandatory regardless of other insurance coverage.

Q5: Why is my Ontario tax higher than expected?
A: Ontario applies a surtax on provincial tax over $5,344, which can significantly increase total provincial tax.