From gross salary to take-home pay in Ontario
Your employer withholds five amounts from every paycheque: federal income tax, Ontario income tax, the Ontario Health Premium, Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums.
Ontario residents file a single income tax return with the Canada Revenue Agency, which calculates both federal and Ontario income tax.
2026 tax brackets for Ontario residents
| Ontario | Rate | Federal | Rate |
|---|---|---|---|
| Up to $53,891 | 5.05% | Up to $58,523 | 14% |
| $53,891 to $107,785 | 9.15% | $58,523 to $117,045 | 20.5% |
| $107,785 to $150,000 | 11.16% | $117,045 to $181,440 | 26% |
| $150,000 to $220,000 | 12.16% | $181,440 to $258,482 | 29% |
| Over $220,000 | 13.16% | Over $258,482 | 33% |
Ontario adds a surtax: 20% of provincial tax above $5,818, plus 36% of provincial tax above $7,446. On the other hand, the Ontario tax reduction lowers or eliminates provincial tax for lower incomes.
Payroll deductions in 2026
| Deduction | Rate | Annual maximum |
|---|---|---|
| CPP – base contributions | 5.95% | $4,230.45 |
| CPP2 ($74,600 to $85,000) | 4.00% | $416.00 |
| Employment Insurance (EI) | 1.63% | $1,123.07 |
| Ontario Health Premium | income-based | $900.00 |
CPP contributions don't apply to the first $3,500 of salary. Once the annual maximum is reached, the deduction stops for the rest of the year. The Ontario Health Premium is zero up to $20,000 of taxable income, then rises in steps to a maximum of $900 above $200,600.
Take-home pay by gross salary in 2026
| Gross annual | Income tax | Contributions | Net annual | Net biweekly |
|---|---|---|---|---|
| $25,000 | $1,480 | $1,687 | $21,833 | $840 |
| $30,000 | $2,452 | $2,066 | $25,482 | $980 |
| $35,000 | $3,332 | $2,445 | $29,223 | $1,124 |
| $40,000 | $4,363 | $2,824 | $32,814 | $1,262 |
| $45,000 | $5,243 | $3,203 | $36,554 | $1,406 |
| $50,000 | $6,273 | $3,582 | $40,145 | $1,544 |
| $55,000 | $7,178 | $3,961 | $43,861 | $1,687 |
| $60,000 | $8,320 | $4,340 | $47,340 | $1,821 |
| $65,000 | $9,725 | $4,719 | $50,556 | $1,944 |
| $70,000 | $11,134 | $5,080 | $53,786 | $2,069 |
| $75,000 | $12,705 | $5,370 | $56,926 | $2,189 |
| $80,000 | $14,128 | $5,570 | $60,303 | $2,319 |
| $90,000 | $17,034 | $5,770 | $67,197 | $2,584 |
| $100,000 | $20,024 | $5,770 | $74,206 | $2,854 |
| $120,000 | $26,888 | $5,770 | $87,343 | $3,359 |
| $150,000 | $39,911 | $5,770 | $104,320 | $4,012 |
| $200,000 | $62,952 | $5,770 | $131,278 | $5,049 |
Average rate vs. marginal rate
The average rate is the total share of your salary that goes to tax and deductions. The marginal rate is the share withheld on each additional dollar. In Ontario, it can rise temporarily in some income ranges, where the health premium phases in or the Ontario tax reduction phases out. Moving into a higher bracket never lowers your take-home pay, though.
What the calculator doesn't include
The calculation assumes a single employee with no other income. Your actual take-home pay may differ if you contribute to an RRSP or a pension plan, pay union dues, receive taxable benefits or claim tax credits. Some credits, such as Ontario's Low-income Individuals and Families Tax (LIFT) credit, are only received when you file your tax return.