1. What is Net Salary Calculation?

The net salary calculator estimates your take-home pay after all mandatory deductions in Ontario, Canada. It accounts for federal and provincial taxes, CPP contributions, EI premiums, and Ontario-specific charges.

2. How Does the Calculator Work?

The calculator uses the following formula:

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 up to $66,600 (2023)
• EI — 1.66% of insurable earnings up to $61,500 (2023)
• Health Premium — Ontario-specific charge from $0 to $900
• Surtax — Additional Ontario tax on provincial tax over $5,535

3. Ontario-Specific Deductions

Details: Ontario residents pay additional charges including the Health Premium (based on income) and Surtax (applied to provincial tax over $5,535).

4. Using the Calculator

Tips: Enter your annual gross salary in Canadian dollars. The calculator will estimate all deductions and your final take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: Are these rates up to date?
A: This calculator uses 2023 tax rates and contribution limits. Rates are updated annually.

Q2: What's not included in this calculation?
A: Union dues, workplace benefits, RRSP contributions, and other voluntary deductions are not included.

Q3: How often are CPP/EI limits updated?
A: These are adjusted annually based on average wage increases.

Q4: Do all Ontarians pay the health premium?
A: Those earning under $20,000 pay nothing, while high earners pay up to $900 annually.

Q5: Why is there a surtax?
A: Ontario applies additional tax on provincial tax over $5,535 to fund public services.