1. What is the Ontario Salary Tax Calculator?

The Ontario Salary Tax Calculator estimates your total tax burden for 2025 based on your annual income. It calculates federal tax, Ontario provincial tax, CPP contributions, EI premiums, Ontario Health Premium, and surtax.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Federal Tax — Calculated using progressive tax brackets
• Ontario Provincial Tax — Calculated using Ontario's progressive tax rates
• CPP — Canada Pension Plan contributions
• EI — Employment Insurance premiums
• Ontario Health Premium — Additional health tax based on income
• Surtax — Additional tax on Ontario tax above certain thresholds

3. Components of Ontario Taxes

Details: Ontario residents pay multiple layers of taxes and contributions. The calculator accounts for all major components to provide a comprehensive estimate of your tax burden.

4. Using the Calculator

Tips: Enter your annual income before taxes in Canadian dollars. The calculator will estimate all tax components and your net (after-tax) income.

5. Frequently Asked Questions (FAQ)

Q1: Are these tax rates final for 2025?
A: Rates are based on current projections. Actual 2025 rates may change with government budgets.

Q2: Does this include all deductions?
A: This includes major deductions but may not account for all possible tax credits or special situations.

Q3: How accurate is the Ontario Health Premium calculation?
A: The premium is calculated based on current brackets, which may be adjusted for inflation by 2025.

Q4: What about RRSP contributions?
A: This calculator assumes no RRSP contributions. RRSPs would reduce taxable income.

Q5: Are there different rates for self-employed individuals?
A: Yes, self-employed individuals pay both employee and employer portions of CPP.