1. What is the Ontario Salary Tax Calculator?

This calculator helps Ontario residents estimate their paycheck deductions for 2023, including federal and provincial income taxes, CPP contributions, EI premiums, Ontario Health Premium, and surtax.

2. How Does the Calculator Work?

The calculator uses the following components:

Where:

• Federal Tax — Calculated using progressive tax brackets
• Ontario Provincial Tax — Calculated using Ontario's progressive tax brackets
• CPP — Canada Pension Plan contributions (5.95% of pensionable earnings)
• EI — Employment Insurance premiums (1.63% of insurable earnings)
• Ontario Health Premium — Progressive health tax based on income
• Surtax — Additional tax on provincial tax above certain thresholds

3. Understanding Your Paycheck Deductions

Details: Your paycheck deductions include mandatory contributions to government programs and progressive income taxes that increase with higher earnings.

4. Using the Calculator

Tips: Enter your gross salary and select your pay period. The calculator will show your estimated deductions and net pay for that period.

5. Frequently Asked Questions (FAQ)

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

Q2: What's the basic personal amount for 2023?
A: The federal basic personal amount is $15,000. Ontario's is $11,865. These amounts are tax-free.

Q3: How often is CPP deducted?
A: CPP is deducted each pay period until you reach the annual maximum contribution of $3,754.45 (for 2023).

Q4: What's the maximum EI premium for 2023?
A: The maximum annual EI premium is $1,002.45 (for 2023).

Q5: Do I pay Ontario Health Premium if I have employer health insurance?
A: Yes, the health premium is based on income, not insurance coverage.