1. What is the Ontario Tax Calculator?

The Ontario Tax Calculator estimates your total tax burden 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 — Progressive rates from 15% to 33%
• Ontario Tax — Progressive rates from 5.05% to 13.16%
• CPP — 5.95% of pensionable earnings
• EI — 1.66% of insurable earnings
• Health Premium — Sliding scale up to $900
• Surtax — Additional tax on provincial tax over $4,825

3. Components of Ontario Taxes

Details: Ontario residents pay multiple layers of tax including federal income tax, provincial income tax, CPP contributions, EI premiums, health premium, and potentially surtax.

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 estimated 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: What's not included in this calculation?
A: This doesn't include tax credits, deductions, or other potential deductions like union dues or RRSP contributions.

Q3: Why is there a surtax in Ontario?
A: The surtax is an additional tax applied to provincial tax above certain thresholds, effectively creating higher marginal rates.

Q4: Is the health premium deductible?
A: No, the Ontario Health Premium is not deductible for federal or provincial tax purposes.

Q5: How often are tax brackets adjusted?
A: Federal and provincial tax brackets are typically indexed to inflation annually.