1. What is Net Salary?

Net salary is the amount an employee takes home after all deductions including taxes (federal and provincial), Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Gross Salary — Annual salary before deductions
• Federal Tax — Progressive tax rates from 15% to 33%
• Ontario Tax — Progressive tax rates from 5.05% to 13.16%
• CPP — 5.95% of pensionable earnings up to $68,500 (2024)
• EI — 1.66% of insurable earnings up to $63,200 (2024)

3. Tax Brackets and Deductions

Federal Tax Brackets (2024):

• 15% on first $55,867
• 20.5% on $55,867-$111,733
• 26% on $111,733-$173,205
• 29% on $173,205-$246,752
• 33% on amounts over $246,752

Ontario Tax Brackets (2024):

• 5.05% on first $51,446
• 9.15% on $51,446-$102,894
• 11.16% on $102,894-$150,000
• 12.16% on $150,000-$220,000
• 13.16% on amounts over $220,000

4. Using the Calculator

Tips: Enter your annual gross salary in Canadian dollars. The calculator will estimate your net salary after all mandatory deductions.

5. Frequently Asked Questions (FAQ)

Q1: Are these calculations exact?
A: This provides an estimate. Actual deductions may vary based on additional factors like benefits, bonuses, or tax credits.

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

Q3: Are there other deductions not included?
A: Yes, this doesn't account for union dues, benefit plans, or voluntary contributions.

Q4: How often are tax brackets updated?
A: Tax brackets are typically adjusted annually for inflation.

Q5: What if I have multiple jobs?
A: CPP and EI deductions may be different if you have multiple employers.