1. What is the Ontario Salary Tax Calculator?

The Ontario Salary Tax Calculator estimates your total tax burden in Ontario for the 2024-2025 tax year, including federal tax, provincial tax, CPP, EI, health premium, and surtax.

2. How Does the Calculator Work?

The calculator uses current tax brackets and rates for Ontario:

Where:

• Federal Tax — Calculated using progressive federal tax brackets
• Ontario Tax — Calculated using provincial tax brackets
• CPP — Canada Pension Plan contributions (5.95% up to maximum)
• EI — Employment Insurance premiums (1.63% up to maximum)
• Health Premium — Ontario's health tax based on income brackets
• Surtax — Additional tax on Ontario tax above certain thresholds

3. Components of Ontario Taxes

Details: Ontario residents pay multiple layers of taxes and contributions. Understanding each component helps in financial planning.

4. Using the Calculator

Tips: Enter your gross annual income in CAD. The calculator will show the breakdown of all taxes and deductions, plus your net income.

5. Frequently Asked Questions (FAQ)

Q1: Are these the exact rates for 2024?
A: Yes, these are the official rates and brackets for the 2024 tax year in Ontario.

Q2: Does this include tax credits?
A: No, this calculates gross taxes before any credits or deductions are applied.

Q3: What's the difference between CPP and EI?
A: CPP is for retirement benefits, while EI provides temporary income support for unemployed workers.

Q4: Why is there a health premium?
A: Ontario charges this additional tax to help fund healthcare services in the province.

Q5: What income is taxable?
A: All employment income, plus most other income sources like investments and rental income.