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 contributions, 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 federal tax brackets
• Ontario Tax — Calculated using Ontario provincial tax brackets
• CPP — Canada Pension Plan contributions (5.95% on income up to $66,600)
• EI — Employment Insurance premiums (1.63% on income up to $63,100)
• Health Premium — Ontario Health Premium based on income brackets
• Surtax — Additional Ontario tax on provincial tax above certain thresholds

3. Understanding Ontario Taxes

Details: Ontario has a progressive tax system with both federal and provincial components. Residents also pay into social programs (CPP/EI) and additional Ontario-specific charges.

4. Using the Calculator

Tips: Enter your gross annual salary in Canadian dollars. The calculator will show the breakdown of all tax components and your estimated net income.

5. Frequently Asked Questions (FAQ)

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

Q2: What's not included in this calculation?
A: This doesn't account for tax credits, deductions, RRSP contributions, or other special circumstances that may affect your final tax liability.

Q3: Why is there a surtax in Ontario?
A: The surtax is an additional tax applied to Ontario provincial tax above certain thresholds, effectively creating higher marginal rates.

Q4: Is the Ontario Health Premium deductible?
A: No, the health premium is not deductible for federal or provincial tax purposes.

Q5: How often are CPP and EI maximums updated?
A: These amounts are typically adjusted annually based on average wage growth in Canada.