1. What is Ontario Salary Tax?

The Ontario Salary Tax consists of multiple components including federal tax, provincial tax, CPP contributions, EI premiums, Ontario Health Premium, and surtax. This calculator provides a comprehensive breakdown of all these components for the 2024 tax year.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax — Calculated using progressive federal tax brackets
• Ontario Provincial Tax — Calculated using Ontario tax brackets
• CPP — Canada Pension Plan contributions (5.95% in 2024)
• EI — Employment Insurance premiums (1.63% in 2024)
• Ontario Health Premium — Progressive health tax based on income
• Surtax — Additional tax on Ontario tax above certain thresholds

3. Components of Ontario Taxes

Details: Ontario residents pay taxes to both federal and provincial governments, plus mandatory contributions to social programs. The Ontario Health Premium and Surtax are unique provincial components.

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 net income after taxes.

5. Frequently Asked Questions (FAQ)

Q1: Why is my Ontario tax higher than other provinces?
A: Ontario has a health premium and surtax that many other provinces don't have, plus its own provincial tax brackets.

Q2: Are CPP and EI deductions tax-deductible?
A: Yes, CPP contributions and EI premiums are tax-deductible, reducing your taxable income.

Q3: What's the difference between provincial tax and surtax?
A: Provincial tax is the main tax on income, while surtax is an additional tax applied to provincial tax above certain amounts.

Q4: Do I pay Ontario Health Premium if I have private insurance?
A: Yes, the health premium is based on income, not insurance status.

Q5: Are these rates for 2024 accurate?
A: This calculator uses the latest available 2024 rates and brackets, but always verify with official sources.