Ontario Salary Calculator

You pay federal income tax and Ontario provincial income tax as two separate calculations on the same taxable income, then add them together. For 2026, federal rates run from 14% to 33% across five brackets, and Ontario rates run from 5.05% to 13.16% across five brackets. Each level has its own Basic Personal Amount that reduces the tax you owe, applied as a credit at the lowest rate rather than as a straight deduction from income.

The Ontario Surtax is an extra tax on top of your Ontario tax payable, not on your income directly. For 2026, once your basic Ontario tax exceeds $5,818 you pay a 20% surtax on the amount over that threshold, and once it exceeds $7,307 you pay an additional 36% on the amount over that second threshold. The two tiers stack, so the marginal surtax rate on Ontario tax above $7,307 is effectively 56%. It typically starts applying once your taxable income is in the mid-$70,000s range.

The Ontario Health Premium is a separate annual charge based on your taxable income, layered on top of income tax and the surtax. It's a step function, not a flat percentage: it starts at $0 below $20,000 of taxable income and ramps up through several plateaus to a maximum of $900 per year once taxable income passes roughly $200,600. Most full-time Ontario tech salaries land at or near the $750-$900 range.

CPP2 is a second, additional layer of Canada Pension Plan contributions introduced in 2024, on top of base CPP. Base CPP charges 5.95% on earnings between a $3,500 exemption and the Year's Maximum Pensionable Earnings (YMPE) of $74,600 for 2026, capping at $4,230.45. CPP2 then charges an extra 4.00% on earnings between that $74,600 YMPE and a higher ceiling, the Year's Additional Maximum Pensionable Earnings (YAMPE) of $85,000 for 2026, capping at $416.00. Anyone earning above roughly $75,000 will see both deductions on their pay stub.

No. This calculator models federal tax combined with Ontario provincial tax only. Every other province and territory sets its own income tax brackets, its own Basic Personal Amount, and its own surtax or premium rules (British Columbia, Alberta, and Quebec, for example, all differ significantly from Ontario). If you work outside Ontario, treat this as a federal-tax-only approximation and expect your actual take-home to differ.

Yes. Employment Insurance (EI) employee premiums are 1.63% of insurable earnings for 2026, capped at the Maximum Insurable Earnings (MIE) of $68,900. That caps the maximum employee EI premium at $1,123.07 per year, no matter how much you earn above that threshold.

The calculator uses 2026 CRA federal rates, Ontario Ministry of Finance provincial rates, and current CPP/CPP2/EI figures, applied to standard T4 employment income. It does not account for RRSP contributions, union dues, employer benefits, or other credits and deductions that could change your actual net pay. Always verify with the CRA or a tax professional for precise figures.