Estimate your Ontario take-home pay after federal tax, Ontario tax, the Ontario Health Premium, CPP, and EI.
Ontario has five personal tax brackets for 2026, starting at 5.05% and rising to 13.16% above $220,000. Ontario also applies a surtax on provincial tax over $5,818, plus a separate Ontario Health Premium that can reach $900 a year. A low-income tax reduction of $300 can wipe out Ontario tax for some lower earners.
Ontario employees pay the same federal brackets, Canada Pension Plan, and Employment Insurance as other provinces outside Quebec. The 2026 federal basic personal amount is $16,452 for most filers. Ontario’s own basic personal amount is $12,989.
The Ontario Health Premium is based on taxable income and is not reduced by the Ontario tax reduction. Taxable benefits, employer pensions, and your TD1ON claim can change withholding even when salary stays the same.
The same federal brackets apply in Ontario as in other provinces outside Quebec. This calculator uses CRA T4127 Option 1 and claim code 1.
Ontario has five personal tax brackets for 2026, starting at 5.05% and rising to 13.16% above $220,000. Ontario also applies a surtax on provincial tax over $5,818, plus a separate Ontario Health Premium that can reach $900 a year. A low-income tax reduction of $300 can wipe out Ontario tax for some lower earners.
Employees contribute 5.95% of pensionable earnings between the $3,500 exemption and the YMPE, up to $4,230.45. CPP2 applies once pensionable earnings pass the YMPE ($74,600 in 2026) and continue to the YAMPE ($85,000).
The 2026 employee EI rate outside Quebec is 1.63% of insurable earnings up to $68,900, with a maximum premium of $1,123.07.
| Salary | Estimated annual take-home | Effective tax rate |
|---|---|---|
| $40,000 | $32,813.54 | 10.9% |
| $50,000 | $40,144.94 | 12.5% |
| $60,000 | $47,340.22 | 13.9% |
| $70,000 | $53,786.73 | 15.9% |
| $80,000 | $60,303.09 | 17.7% |
| $90,000 | $67,197.39 | 18.9% |
| $100,000 | $74,206.69 | 20.0% |
| $120,000 | $87,342.28 | 22.4% |
| $150,000 | $104,319.40 | 26.6% |
Estimated take-home is $60,303.09 a year, with an effective income-tax rate of 17.7%.
Yes. The Ontario Health Premium is included in estimated provincial tax using the CRA T4127 V2 formula.
The 2026 Ontario basic personal amount used here is $12,989, from CRA T4127 Table 8.2.
Estimated take-home pay is your gross salary minus federal and provincial or territorial income tax, CPP or QPP, EI, and any optional deductions you enter. This calculator uses CRA T4127 payroll deduction formulas for 2026, with Revenu Québec parameters for Quebec provincial tax.
Canada uses progressive tax brackets federally and in each province or territory. You do not pay the top rate on your whole salary. This page shows estimated income tax and an effective tax rate, which is total estimated tax divided by gross salary.
For 2026, employees contribute 5.95% of pensionable earnings between the $3,500 basic exemption and the $74,600 YMPE, up to $4,230.45. Earnings between $74,600 and $85,000 also attract a 4% second additional contribution (CPP2), up to $416. Quebec employees contribute to QPP instead.