Ontario Salary Calculator (After Tax Take-Home Pay)
Use this Ontario salary calculator to estimate your after-tax take-home pay in 2025, accounting for federal income tax, Ontario provincial tax (5.31%), Canada Pension Plan (CPP), and Employment Insurance (EI).
Last updated: January 2025 • Based on official CRA and Ontario tax rates
Understanding how your salary is taxed in Ontario, Canada is essential for accurate financial planning. This calculator estimates your take-home pay after accounting for all applicable taxes and deductions, including federal income tax, Ontario provincial income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) contributions.
The calculation assumes you are a Canadian resident taxpayer with standard deductions. If you have additional deductions, tax credits, or non-standard circumstances, your actual take-home pay may differ. This calculator provides estimates based on official 2025 tax rates from the Canada Revenue Agency (CRA) and should not be considered as tax advice.
How Salary Tax Works in Ontario
Federal Income Tax
All Canadian residents pay federal income tax based on progressive tax brackets. For 2025, the federal brackets are:
- 15% on the first $55,867 of taxable income
- 20.5% on income between $55,867 and $111,735
- 26% on income between $111,735 and $173,205
- 29% on income between $173,205 and $246,752
- 33% on income over $246,752
Ontario Provincial Income Tax
Ontario charges provincial income tax at a rate of approximately 5.31% on taxable income. This is in addition to federal income tax, meaning your total income tax rate is the sum of federal and provincial rates.
Canada Pension Plan (CPP)
All employees in Canada contribute to the Canada Pension Plan, which provides retirement, disability, and survivor benefits. For 2025, the CPP contribution rate is 5.95% on earnings between $3,500 (basic exemption) and $68,500 (maximum pensionable earnings). This means you pay CPP on earnings up to $65,000 ($68,500 - $3,500).
Employment Insurance (EI)
Employment Insurance provides temporary income support to workers who lose their jobs through no fault of their own. For 2025, the EI contribution rate is 1.66% on the first $63,100 of earnings. This is a flat rate applied to all eligible earnings.
Includes Federal & Provincial taxes, CPP (5.95%), and EI (1.66%)
Example Calculation: $60,000 Annual Salary in Ontario
Here's a step-by-step breakdown for a Canadian resident earning $60,000 per year in Ontario:
Ontario vs Other Provinces: Take-Home Pay Comparison
Compare how a $60,000 annual salary translates to take-home pay in Ontario versus other Canadian provinces:
| Province | Provincial Tax | Net Salary | Difference |
|---|---|---|---|
| Ontario | $3,186 | $43,229 | — |
| Nunavut | $2,400 | $44,015 | +$786 |
| British Columbia | $3,036 | $43,379 | +$150 |
| Northwest Territories | $3,540 | $42,875 | $-354 |
Frequently Asked Questions
What is the provincial tax rate in Ontario?
Ontario has a provincial income tax rate of approximately 5.31% on taxable income. This is in addition to federal income tax, which ranges from 15% to 33% depending on your income level.
How accurate is this Ontario salary calculator?
This calculator uses official 2025 tax rates from the Canada Revenue Agency (CRA) and Ontario provincial tax authorities. It provides accurate estimates for standard situations. However, individual circumstances may vary, and this should not be considered as tax advice. For precise calculations, consult a tax professional.
What taxes are deducted from my salary in Ontario?
In Ontario, your salary is subject to federal income tax (progressive rates from 15% to 33%), Ontario provincial income tax (approximately 5.31%), Canada Pension Plan (CPP) contributions (5.95% on earnings between $3,500 and $68,500), and Employment Insurance (EI) contributions (1.66% on first $63,100).
How does Ontario compare to other provinces for take-home pay?
Ontario has a provincial tax rate of 5.31%, which is lower than the average across Canadian provinces. Use the comparison table above to see how Ontario compares to other provinces for a $60,000 annual salary.
Do I pay CPP and EI in Ontario?
Yes, all Canadian employees pay Canada Pension Plan (CPP) and Employment Insurance (EI) contributions regardless of which province they work in. CPP is 5.95% on earnings between $3,500 and $68,500, and EI is 1.66% on the first $63,100 of earnings.
Official Sources
Disclaimer: This calculator provides estimates based on official 2025 tax rates. Individual circumstances may vary. This is not tax advice. Please consult a tax professional for accurate tax planning.