1. What is Ontario Salary Tax?

The Ontario Salary Tax consists of federal tax, provincial tax, CPP contributions, EI premiums, Ontario Health Premium, and surtax. This calculator helps Pakistani users understand their tax obligations in Ontario.

2. How Does the Calculator Work?

The calculator uses current 2024 tax rates and brackets to compute:

Where each component is calculated based on the latest tax rules and brackets.

3. Components of Ontario Taxes

Federal Tax: Progressive tax 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

4. Using the Calculator

Tips: Enter your annual salary in CAD. The calculator will compute all tax components and your net income after taxes.

5. Frequently Asked Questions (FAQ)

Q1: What is FBR in the title?
A: Likely a typo for CRA (Canada Revenue Agency). FBR is Pakistan's Federal Board of Revenue.

Q2: Are these rates accurate for 2024?
A: Yes, the calculator uses 2024 tax rates and brackets.

Q3: Do I pay both federal and provincial tax?
A: Yes, Ontario residents pay both federal and provincial income taxes.

Q4: What's the difference between CPP and EI?
A: CPP is for retirement pensions, EI provides unemployment benefits.

Q5: Can I use this for tax filing?
A: This is for estimation only. Always consult CRA guidelines for official tax filing.