What is the Ontario Take-Home Pay Calculator?
An Ontario job offer quotes a gross salary, but the money that lands in your account is smaller: Canada Pension Plan contributions, Employment Insurance premiums, federal income tax, and Ontario income tax with its own surtax and health premium all come off first. This calculator applies the actual 2026 rules to an annual salary and tells you what is left per year, per month and per pay period.
It is meant for comparing offers, setting a budget before you sign a lease, and seeing what an RRSP contribution really costs you after the tax refund.
How to use it
- Gross employment income. Your annual salary before anything is taken off. Include regular bonuses only if you want them averaged across the year.
- RRSP contribution. Money you put into an RRSP through payroll or claim on your tax return. It lowers your income tax but, importantly, not your CPP or EI, which are based on gross pay.
- Pay periods. Choose weekly, bi-weekly, semi-monthly or monthly to see a per-paycheque figure.
Use the table view to see each deduction line by line, and the chart to see how a dollar of gross pay is divided.
How does the underlying math work?
The calculator follows the structure of the tax return. First the payroll contributions: CPP is 5.95% of earnings between a $3,500 basic exemption and the year’s maximum pensionable earnings; a second CPP tier, CPP2, adds 4% on earnings between that maximum and a higher ceiling; EI is 1.63% of earnings up to its maximum insurable amount. The 4.95% base portion of CPP and the EI premiums become tax credits; the 1.00% enhanced portion of CPP and all of CPP2 are tax deductions.
Ontario adds two things most people forget. The surtax is an extra 20% on Ontario tax above one threshold and a further 36% above a higher one, which is why top earners face a combined marginal rate of 53.53%. The Ontario Health Premium is a flat charge of up to $900 that rises with taxable income. A low-income Ontario tax reduction removes provincial tax entirely at small incomes.
Federal brackets ()
Ontario brackets ()
Surtax: 20% over $ of Ontario tax, plus 36% over $.
Payroll figures ()
CPP: % on earnings from $ to $; CPP2: % from there to $. EI: % up to $.
Worked example: three Ontario salaries
| Gross salary | Take-home / year | Bi-weekly | Income tax | CPP + CPP2 | EI |
|---|---|---|---|---|---|
| $60,000 | $47,340 | $1,821 | $8,320 | $3,362 | $978 |
| $85,000 | $63,679 | $2,449 | $15,551 | $4,646 | $1,123 |
| $120,000 | $87,343 | $3,359 | $26,888 | $4,646 | $1,123 |
Look at the $85,000 row. Federal tax is about $10,227 and Ontario tax about $5,324, which includes a $750 Health Premium. CPP and CPP2 together reach about $4,646 and EI hits its maximum of $1,123 — both stop once you pass their earnings ceilings, which is why take-home pay does not rise as steeply from $85,000 to $120,000 as the headline suggests. Overall, about 18% of gross went to income tax, and about 25% to all deductions.
Now add an RRSP contribution of $8,500 (10% of salary) at the $85,000 level. Take-home falls from $63,679 to $57,700 — a drop of about $5,979, not $8,500, because roughly $2,520 comes back as lower income tax. That is 29.65%, the marginal rate on income in that range. At $120,000 the same contribution would recover about 43% instead.
Real-world practical application
Beyond a single net figure, the tool answers practical questions. How much higher does a $5,000 raise actually put in your pocket? Run the salary twice and subtract. What is a reasonable monthly rent? Many people aim to keep housing near a third of take-home pay, and take-home is the figure that matters, not gross. Is a job with a higher salary but no employer benefits better than a lower one with them? Compare the net figures and then value the benefits separately. And for contract workers on payroll, it shows what a contract rate converts to once CPP and EI are applied.
What this estimate does not include
The calculator assumes you work in Ontario for a full year as an employee, earn the income in one job, and claim only the basic personal amount. It leaves out employer benefit premiums, pension plan contributions, union dues, taxable benefits such as a company car, the Canada Workers Benefit, the Ontario Trillium Benefit and other credits (tuition, medical, charitable, spousal). Self-employed workers pay both halves of CPP and are not covered. Quebec residents have a different system entirely. Bonuses are often withheld at a higher rate up front and reconciled at tax time, so a cheque may look smaller than this estimate. Treat the output as a planning number and check your pay stub and tax return for the exact figures.
The figures on this page are for the 2026 tax year. Rates and thresholds are indexed to inflation each January, so the page updates when the data is refreshed.
Frequently Asked Questions
Why is my paycheque smaller than this calculator says?
Common reasons are workplace benefit premiums, pension contributions, union dues, and taxable benefits that are not modeled here. Bonuses and commissions are often taxed at a higher withholding rate until you file. Compare the gross and each deduction line on your pay stub with the table view to find the gap.
What is the Ontario Health Premium?
It is a charge, up to $900 a year, that Ontario collects through the income tax system to help fund health care. It rises in steps with taxable income and is included in the Ontario tax figure on this page. It is not a separate bill.
Why does the tax rate jump around $120,000 and above?
Because of the Ontario surtax. Once Ontario tax passes certain thresholds, an extra 20% and then an extra 36% of that tax is added. The result is a combined marginal rate that climbs faster than the bracket rates alone suggest, reaching 53.53% at the top.
Does contributing to an RRSP reduce CPP and EI?
No. CPP and EI are calculated on gross employment earnings. An RRSP contribution reduces taxable income only, so it lowers income tax but not those payroll deductions.
Does this apply to other provinces?
No. This page uses Ontario’s tax brackets, surtax and health premium. Other provinces have different brackets and credits, and Quebec also has its own pension and parental insurance plans, so their results would differ.
Related calculators & guides
- RRSP vs. TFSA Calculator — whether the tax refund beats tax-free growth for your rate.
- Salary to Hourly Converter — translate the net figure into an hourly rate.
- Mortgage Affordability Calculator — see housing costs against gross and net income.
- Guide: how much house can I afford? — why lenders use gross income while you live on net.