1. What is the Ontario Wage Calculator?

The Ontario Wage Calculator estimates your net salary (take-home pay) after all mandatory deductions for 2024. It calculates federal and provincial taxes, CPP contributions, EI premiums, Ontario Health Premium, and surtax.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax — Calculated using 2024 tax brackets
• Ontario Tax — Calculated using 2024 provincial tax rates
• CPP — Canada Pension Plan contribution (5.95% up to maximum)
• EI — Employment Insurance premium (1.66% up to maximum)
• Health Premium — Ontario Health Premium based on income
• Surtax — Additional Ontario tax on provincial tax over $5,436

3. Understanding Your Paycheck

Details: In Ontario, your gross salary is reduced by various mandatory deductions. The largest deductions are typically income taxes (both federal and provincial), followed by CPP and EI contributions.

4. Using the Calculator

Tips: Enter your annual gross salary in Canadian dollars. The calculator will show your estimated net salary and a detailed breakdown of all deductions.

5. Frequently Asked Questions (FAQ)

Q1: Are these calculations accurate for all situations?
A: This provides an estimate. Actual deductions may vary based on additional factors like tax credits, RRSP contributions, or other deductions.

Q2: What's the CPP contribution limit for 2024?
A: The maximum CPP contribution for 2024 is $3,867.50 (on earnings up to $68,500).

Q3: What's the EI premium limit for 2024?
A: The maximum EI premium for 2024 is $1,024.05 (on insurable earnings of $63,200).

Q4: Do I pay Ontario Health Premium if I have employer health insurance?
A: Yes, the health premium is based on income and applies regardless of other health coverage.

Q5: Why is there a surtax in Ontario?
A: The surtax is an additional tax on provincial tax that helps fund government services. It applies when basic Ontario tax exceeds $5,436.