1. What is the Ontario Salary Tax Calculator?

The Ontario Salary Tax Calculator estimates your total tax burden for the 2023-2024 tax year, including federal tax, provincial tax, CPP, EI, Ontario Health Premium, and surtax. It helps Ontario residents understand their take-home pay after all mandatory deductions.

2. How Does the Calculator Work?

The calculator uses current tax brackets and rates for Ontario:

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 (2024 rate)
• EI - 1.66% of insurable earnings (2024 rate)
• Health Premium - Progressive premium based on income
• Surtax - Additional tax on Ontario tax above certain thresholds

3. Components of Ontario Taxes

Details: Ontario residents pay multiple layers of taxation. The federal and provincial taxes are progressive, while CPP and EI have maximum contribution limits. The Health Premium is Ontario-specific and scales with income.

4. Using the Calculator

Tips: Enter your gross annual income in Canadian dollars. The calculator will show the breakdown of all deductions and your estimated net income after taxes.

5. Frequently Asked Questions (FAQ)

Q1: Are these rates current for 2024?
A: Yes, this calculator uses the 2023-2024 tax brackets and rates for Ontario.

Q2: Does this include other deductions like union dues?
A: No, this only calculates mandatory government deductions. Other payroll deductions would be additional.

Q3: How accurate is this calculator?
A: It provides a good estimate but doesn't account for tax credits or special circumstances. For exact amounts, consult a tax professional.

Q4: Why is there a surtax in Ontario?
A: The surtax is an additional percentage applied to Ontario tax above certain thresholds, effectively creating higher marginal rates.

Q5: When do CPP contributions stop?
A: CPP contributions stop when you reach the maximum pensionable earnings ($66,600 in 2024) or turn 70, whichever comes first.