Ontario take-home pay calculator
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How can I calculate my take-home pay in Ontario?
You can easily estimate your net salary, or take-home pay, using HelloSafe’s calculator above. Just enter your annual pre-tax salary. This tool will calculate both your take-home pay and income taxes paid per year, month, two-week pay period and day.
Remember that how much tax you will pay on your salary in Ontario is a function of federal and provincial taxes rates and tax deductions. You may be able to reduce your taxable income, but the tool can give you a good starting point. Common tax deductions include:
- Moving expenses
- Childcare expenses
- Union dues or professional expenses
- RPP, or Registered Pension Plan, contributions through an employer
- RRSP, or Registered Retirement Saving Plan, contributions
How is gross to net salary calculated in province?
In Ontario, your take-home pay is calculated by taking your annual pre-tax, or gross, salary and subtracting federal taxes and provincial taxes applied by Ontario.
The formula for calculating the net salary in province is:
Good to know
Net salary = Gross salary – federal taxes – provincial taxes – CPP – EI
How is federal income tax calculated?
Canadian federal income tax is calculated using the following tax bracket.
| Tax rate | 15% | 20.5% | 26% | 29% | 33% |
|---|---|---|---|---|---|
| Annual income | $0 to $49,020 | $49,020 to $98,040 | $98,040 to $151,978 | $151,978 to $216,511 | $216,511+ |
How is Ontario's income tax calculated?
How much tax you will pay on your salary in Ontario depends on your income. Different provinces apply different tax rates. Here is Ontario’s tax bracket.
| Tax rate | 5.05% | 9.15% | 11.16% | 12.16% | 13.16% | Surtax 20% |
|---|---|---|---|---|---|---|
| Annual income | $0 to $45,142 | $45,142 to $90,287 | $90,287 to $150,000 | $150,000 to $220,000 | $220,000+ | Additional tax rate on Ontario taxes over $4,991 |
How do tax brackets work?
When looking at tax brackets, remember that the tax rate is only applied to that specific tax rate. To take just federal taxes as a simplified example, someone who makes $100,000 per year will pay 15% on the first $49,020, 20.5% on the income from $49,021 to $98,040, and 26% on the remaining $1,960.
This works out to $17,912, which is much lower than the $26,000 one might assume. In reality, with tax deductions, it is likely to be even lower.
Ontario gross to net salary example
To give two examples of take-home pay in Ontario, we look at a nurse and a retail salesperson. The nurse earns $75,000 per year, while the retail salesperson earns $40,000 per year.
| Profession | Salary | Federal taxes | Ontario taxes | CPP and EI contributions | Total taxes | After-tax salary |
|---|---|---|---|---|---|---|
| nurse | $75,000 | $9,962 | $5,037 | $3,754 | $18,753 | $56,247 |
| retail salesperson | $40,000 | $3,447 | $1,797 | $2,548 | $7,792 | $32,208 |
What is the average salary in Ontario?
The average income in Ontario for adults over the age of 16 is $50,200. This works out to be $1,931 per biweekly paycheck.
This compares to an average of $48,700 and $38,800 median in Canada for adults over the age of 16. This is equivalent to $1,876 or $1,492 per biweekly paycheck.
What is the minimum salary in Ontario?
Ontario's minimum wage is $15.
Note: the minimum wage in Ontario is based on Canada's Consumer Price Index for the previous year. It is adjusted annually on October 1st.
Assuming a standard 40 hours of work per week and 50 weeks worked per year, this is equivalent to $30,000 per year.
$13.50 per hour for under 18 year olds working 28 hours per week.
$12.55 per hour for liquor servers
Why should I calculate my take-home pay in Ontario?
Our Ontario gross to net salary calculator will let you know your take-home pay for each of the following periods:
- Year
- Month
- 2-week pay period
- Day
Knowing how much you will earn is helpful for personal budgeting. You can also use this information to:
- Compare job offers
- Negotiate a raise
- Negotiating your salary when applying for a job
- Estimate how much you can afford towards rent, mortgage or regular expense
What is a good salary in Ontario?
What is considered a good salary in Ontario will be different for everyone. It depends on the composition, the local cost of living, housing costs and much more.
The average annual salary of someone over the age of 16 in Ontario is $50,200.
$50,200 may be a good annual salary for one person, but may not be enough to make ends meet for another. Someone who co-habits with another earner and has paid off their home has very different needs than a single parent who lives in an expensive area.
Good to know
Wondering how Ontario's salaries and income taxes compare to other provinces? Check out HelloSafe's guide to income tax in Canada.
