1. What is the Ontario Salary Calculator?

The Ontario Salary Calculator estimates your net take-home pay after all mandatory Canadian payroll deductions including federal tax, Ontario provincial tax, Canada Pension Plan (CPP), and Employment Insurance (EI) contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax — Progressive rates from 15% to 33% (2024 brackets)
• Ontario Tax — Progressive rates from 5.05% to 13.16% (2024 brackets)
• CPP — 5.95% on earnings up to $66,600 (2024 maximum)
• EI — 1.66% on earnings up to $63,100 (2024 maximum)

3. Understanding Canadian Payroll Deductions

Details: Canadian payroll deductions include federal and provincial income taxes (calculated using progressive tax brackets), mandatory contributions to the Canada Pension Plan (CPP), and Employment Insurance (EI) premiums.

4. Using the Calculator

Tips: Enter your annual gross salary in Canadian dollars. The calculator will estimate your net take-home pay after all mandatory deductions based on 2024 tax rates and contribution limits.

5. Frequently Asked Questions (FAQ)

Q1: Are these calculations exact?
A: This provides estimates. Actual pay may vary based on additional deductions (benefits, union dues, etc.) or tax credits.

Q2: What about other provinces?
A: This calculator is for Ontario only. Other provinces have different tax rates.

Q3: Are bonuses included?
A: Bonuses are typically taxed at source at a higher rate but reconciled when filing taxes.

Q4: What's the basic personal amount?
A: For 2024, the first $15,705 of income is tax-free federally (adjusted for Ontario).

Q5: When do tax brackets change?
A: Tax brackets are adjusted annually for inflation. Rates may change with new budgets.