1. What is Ontario Salary Tax?

Salary tax in Ontario consists of federal tax, provincial tax, CPP contributions, EI premiums, Ontario Health Premium, and surtax. These deductions are automatically withheld from your paycheck by your employer.

2. How Does the Calculator Work?

The calculator uses current tax brackets and rates to compute:

Each component is calculated separately based on your annual salary.

3. Components of Ontario Tax Calculation

Federal Tax: Progressive tax rates from 15% to 33% based on income brackets.
Ontario Tax: Progressive rates from 5.05% to 13.16% based on income.
CPP: 5.95% of pensionable earnings up to $66,600 (2024).
EI: 1.63% of insurable earnings up to $63,100 (2024).
Health Premium: Additional premium based on income brackets.
Surtax: Additional tax on Ontario tax above certain thresholds.

4. Using the Calculator

Instructions: Enter your gross annual salary in CAD. The calculator will show the breakdown of all deductions and your net income after taxes.

5. Frequently Asked Questions (FAQ)

Q1: Are these rates up to date?
A: This calculator uses 2024 tax rates and brackets. Tax rates may change annually.

Q2: Why is my actual paycheck different?
A: Paychecks may differ due to benefits deductions, bonuses, tax credits, or different pay periods.

Q3: Is CPP contribution mandatory?
A: Yes, all employed Canadians between 18-70 must contribute to CPP, with few exceptions.

Q4: Can I claim the Health Premium?
A: No, the Ontario Health Premium is not tax-deductible.

Q5: When are tax brackets adjusted?
A: Federal and provincial tax brackets are typically adjusted annually for inflation.