1. What is the Ontario Salary Tax Calculator?

The Ontario Salary Tax Calculator estimates your total tax burden for 2024, including federal tax, provincial tax, CPP, EI, Ontario Health Premium, and surtax. It helps you understand how much of your salary goes to taxes and what your net income will be.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax - Progressive tax rates based on income brackets
• Ontario Provincial Tax - Progressive tax rates specific to Ontario
• CPP - Canada Pension Plan contributions (5.95% in 2024)
• EI - Employment Insurance premiums (1.63% in 2024)
• Ontario Health Premium - Additional health tax based on income
• Surtax - Additional tax on Ontario provincial tax

3. Components of Ontario Taxes

Details: Ontario residents pay several types of taxes:

• Federal income tax (progressive rates from 15% to 33%)
• Ontario income tax (progressive rates from 5.05% to 13.16%)
• Mandatory CPP contributions (5.95% up to $66,600 in 2024)
• EI premiums (1.63% up to $63,100 in 2024)
• Ontario Health Premium (up to $900 based on income)
• Ontario Surtax (additional tax on provincial tax)

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

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

Q2: Does this include tax credits?
A: No, this is a basic calculator that doesn't account for personal tax credits or deductions.

Q3: Why is my Ontario tax higher than expected?
A: Ontario has a health premium and surtax that increase the total provincial tax burden.

Q4: Is CPP tax-deductible?
A: Yes, CPP contributions are deductible from your taxable income.

Q5: When are these taxes due?
A: For employees, taxes are deducted at source by your employer. Self-employed individuals must pay installments.