🇨🇦 Ontario Tax Calculator 2026 - CPP/EI Calculator | 2026 Tax Brackets
Free Ontario tax calculator with CPP/EI calculations for 2026. Calculate federal tax, Ontario provincial tax (up to 13.16%), CPP (5.95%), EI (1.66%), Ontario Health Premium, and take-home pay. Updated with 2026 tax brackets and rates.
Income that is not subject to federal income tax (e.g., municipal bond interest, certain benefits)
Eligible for Canada Child Benefit and tax credits
Add RRSP Contributions (Optional)
OptionalClick to add RRSP contributions and reduce your taxable income. Maximum: 18% of income or $31,560
CPP & EI Year-to-Date Tracker
Have you already hit your CPP/EI limits this year? Once you reach the annual maximum, contributions stop for the rest of the year.
Pre-Tax Benefits & Allowances
Enter annual amounts for employer benefits and spending accounts that reduce your taxable income and net pay.
Automatically applied to reduce your tax payable (Federal: $15,705 + Provincial BPA tax credits)
Ontario Salary Tax Calculator - Calculate Your Take-Home Pay
Our free Ontario salary tax calculator helps you determine exactly how much you'll take home from your annual salary. Whether you're earning $40,000 or $200,000, this calculator accounts for all federal taxes, Ontario provincial taxes, CPP contributions, EI premiums, and the Basic Personal Amount to give you an accurate estimate of your net pay.
Simply enter your annual salary and filing status, and our Ontario salary calculator will instantly show you:
- Your gross annual salary
- Federal income tax (based on 2026 tax brackets)
- Ontario provincial tax (progressive rates up to 13.16%)
- CPP contributions (5.95% on earnings between $3,500 and $68,500)
- EI premiums (1.66% on earnings up to $63,200)
- Your net annual take-home pay
- Monthly and bi-weekly paycheck amounts
Ontario Hourly Wage Calculator - Convert Hourly Rate to Salary
Use our Ontario hourly calculator to convert your hourly wage to an annual salary and calculate your take-home pay. Perfect for hourly workers, freelancers, and contractors who want to understand their annual tax burden and net income in Ontario.
Our Ontario hourly wage calculator allows you to:
- Enter your hourly rate and hours worked per week
- Calculate overtime pay (1.5x or custom multiplier)
- See your gross annual income
- Calculate all taxes and deductions (federal, provincial, CPP, EI)
- View your net hourly rate after taxes
- Compare different hourly rates and work schedules
For example, if you earn $30/hour and work 40 hours per week in Ontario, your gross annual income would be $62,400. After federal tax, Ontario provincial tax, CPP, and EI, your take-home pay would be approximately $46,000-$48,000, depending on your filing status and deductions.
Ontario Paycheck Calculator - Calculate Your Bi-Weekly or Monthly Pay
Our Ontario paycheck calculator shows you exactly what will be deducted from each paycheck. Whether you're paid weekly, bi-weekly, semi-monthly, or monthly, this calculator breaks down all deductions so you know exactly how much you'll receive.
The Ontario paycheck calculator accounts for:
- Federal income tax withholding
- Ontario provincial tax withholding
- CPP contributions (5.95% of gross pay, up to annual limit)
- EI premiums (1.66% of gross pay, up to annual limit)
- Basic Personal Amount credits
- Retirement contributions (RRSP, etc.)
Simply enter your pay frequency and gross pay amount, and our Ontario paycheck calculator will show you the exact breakdown of each deduction and your net pay per paycheck.
- • 15% - Up to $55,867
- • 20.5% - $55,868 to $111,733
- • 26% - $111,734 to $173,205
- • 29% - $173,206 to $246,752
- • 33% - Over $246,752
Provincial taxes are calculated separately and added to federal tax.
- Tax Type: Progressive Brackets
- Top Rate: 13.16%
- Province Code: ON
- Provincial taxes are calculated separately from federal taxes and added to your total tax burden.
- CPP Rate: 5.95% on earnings between $3,500 and $68,500
- CPP Maximum: $3,867.50 per year
- EI Rate: 1.66% on earnings up to $63,200
- EI Maximum: $1,049.12 per year
Calculate Your Ontario Salary, Hourly Wage, and Paycheck
Enter your annual salary to see your take-home pay after federal taxes, Ontario provincial taxes, CPP, and EI. Perfect for salaried employees who want to understand their net income in Canada.
Enter your hourly rate and hours per week to calculate your annual salary and take-home pay. Includes overtime calculations and shows your net hourly rate after all taxes and deductions.
See exactly what's deducted from each paycheck. Works for weekly, bi-weekly, semi-monthly, or monthly pay periods. Shows all tax withholdings and your net pay per paycheck.
Understanding Ontario Tax System - Comprehensive Guide to CRA Tax Laws
Ontario operates under Canada's dual tax system, where residents pay both federal income tax (administered by CRA - Canada Revenue Agency) and Ontario provincial income tax. The tax year runs from January 1 to December 31, with tax returns due by April 30 of the following year. Ontario has the highest provincial tax rates in Canada, making it crucial to understand all available deductions and credits.
2026 Ontario Provincial Tax Brackets (Taxable Income):
Ontario provincial tax is calculated on taxable income (after federal Basic Personal Amount and other deductions). These rates are in addition to federal tax.
- 5.05% - First $51,446 of taxable income
- 9.15% - Next $51,448 ($51,447 to $102,894)
- 11.16% - Next $47,106 ($102,895 to $150,000)
- 12.16% - Next $70,000 ($150,001 to $220,000)
- 13.16% - Over $220,000 (highest provincial rate in Canada)
Combined Federal + Ontario Rates: For income over $220,000, the combined marginal tax rate reaches 53.53% (33% federal + 13.16% Ontario + 15% surtax on high income). This is among the highest in Canada.
Ontario Health Premium (OHP) - Income-Based Health Tax
Ontario residents pay an Ontario Health Premium (OHP) based on taxable income. Unlike other provinces, Ontario charges this as a separate premium rather than including it in income tax rates:
Ontario Health Premium Rates 2026:
- $0 - Taxable income up to $20,000
- $300 - Taxable income $20,000 to $36,000
- $450 - Taxable income $36,000 to $48,000
- $600 - Taxable income $48,000 to $72,000
- $750 - Taxable income $72,000 to $200,000
- $900 - Taxable income over $200,000
The OHP is calculated on your tax return and is not deducted at source. It's added to your total tax payable and provides access to Ontario's public health insurance (OHIP).
Ontario Surtax - Additional Tax on High Income Earners
Ontario applies a surtax on provincial tax for high-income earners, effectively increasing the top marginal rate:
- 20% Surtax: Applied when Ontario tax exceeds $5,315 (approximately $106,000+ taxable income)
- 36% Additional Surtax: Applied when Ontario tax exceeds $6,802 (approximately $220,000+ taxable income)
- Effective Top Rate: The surtax increases the effective top provincial rate from 13.16% to approximately 20.53% for the highest earners
Example: For taxable income of $250,000, you pay 13.16% on income over $220,000, plus surtaxes, resulting in an effective provincial rate of approximately 18-19%.
CPP (Canada Pension Plan) - Mandatory Retirement Contributions
CPP contributions are mandatory for all employees in Ontario (and across Canada) between ages 18-70. CPP provides retirement, disability, and survivor benefits:
- Contribution Rate: 5.95% of pensionable earnings (employee portion)
- Employer Match: Employers contribute an additional 5.95% (total 11.9%)
- Year's Basic Exemption (YBE): First $3,500 of earnings is exempt from CPP
- Year's Maximum Pensionable Earnings (YMPE): $68,500 for 2026 - earnings above this are not subject to CPP
- Maximum Employee Contribution: $3,867.50 per year (5.95% × ($68,500 - $3,500))
- Tax Treatment: CPP contributions are tax-deductible, reducing your taxable income
- Self-Employed: Must pay both employee and employer portions (11.9% total) but can deduct the employer portion
CPP Benefits: CPP provides retirement pension (starting at age 60-70), disability benefits, survivor benefits, and death benefits. The amount you receive depends on your contributions and years of participation.
EI (Employment Insurance) - Income Protection
EI premiums provide temporary income support for unemployed workers, maternity/parental benefits, sickness benefits, and compassionate care benefits:
- Premium Rate: 1.66% of insurable earnings (employee portion)
- Employer Contribution: 1.4× employee rate (2.324% total employer cost)
- Maximum Insurable Earnings: $63,200 for 2026
- Maximum Employee Premium: $1,049.12 per year (1.66% × $63,200)
- Tax Treatment: EI premiums are not tax-deductible (unlike CPP)
- Eligibility: Must work 420-700 insurable hours (depending on unemployment rate in your region) to qualify for benefits
- Benefit Rate: Typically 55% of average insurable earnings, up to maximum of $668/week
Ontario Tax Credits & Deductions - Maximize Your Savings
Ontario offers several provincial tax credits that can significantly reduce your tax payable. These are claimed on your federal tax return (Schedule ON428):
Key Ontario Tax Credits 2026:
- Ontario Basic Personal Amount: $11,865 (non-refundable credit, reduces tax by approximately $1,200)
- Ontario Trillium Benefit (OTB): Combines three credits - Energy and Property Tax Credit, Northern Ontario Energy Credit, and Sales Tax Credit (refundable, up to $1,200+ for low-income families)
- Ontario Child Benefit: Up to $1,434 per child (refundable, for families with children under 18)
- Ontario Senior Homeowners' Property Tax Grant: Up to $500 for seniors 64+ (refundable)
- Ontario Energy and Property Tax Credit: Up to $1,194 for renters, up to $1,360 for homeowners (refundable)
- Ontario Sales Tax Credit: Up to $345 for individuals, $345 for spouse, $172.50 per child (refundable)
- Ontario Tuition and Education Credits: 5.05% of eligible tuition and education amounts (non-refundable, can be carried forward)
- Ontario Medical Expense Credit: 5.05% of eligible medical expenses exceeding 3% of net income or $2,635 (whichever is less)
- Ontario Disability Support Program Credit: Up to $1,200 (refundable, for individuals with disabilities)
Refundable vs. Non-Refundable: Refundable credits are paid even if you have no tax payable. Non-refundable credits can only reduce tax to zero but can be carried forward.
RRSP (Registered Retirement Savings Plan) - Tax-Deferred Savings
RRSP contributions are one of the most powerful tax-saving tools in Ontario. Contributions reduce your taxable income and grow tax-free until withdrawal:
- Contribution Limit: 18% of previous year's earned income, up to $31,560 for 2026
- Tax Deduction: RRSP contributions are fully tax-deductible, providing immediate tax savings at your marginal rate
- Tax Savings Example: A $10,000 RRSP contribution saves approximately $3,000-$5,300 in taxes (depending on your tax bracket)
- Tax-Deferred Growth: Investments grow tax-free until withdrawal (typically in retirement when tax rates are lower)
- Home Buyers' Plan (HBP): Withdraw up to $35,000 tax-free for first-time home purchase (must be repaid over 15 years)
- Lifelong Learning Plan (LLP): Withdraw up to $20,000 tax-free for education (must be repaid over 10 years)
- Withdrawal Rules: Withdrawals are taxed as income. Must convert to RRIF by age 71 and begin minimum withdrawals
Filing Requirements & Deadlines - CRA Compliance
Who Must File: All Canadian residents with taxable income must file a tax return. Even if you have no tax payable, filing ensures you receive benefits like GST/HST credit and Canada Child Benefit.
- Filing Deadline: April 30 of the following year (e.g., 2024 income due by April 30, 2025)
- Self-Employed Deadline: June 15 (but tax must still be paid by April 30 to avoid interest)
- E-Filing: CRA encourages NETFILE (online filing) - faster processing and refunds in 8-14 business days
- Paper Filing: Takes 4-6 weeks for processing
- Penalties: Late filing penalty is 5% of balance owing plus 1% per month (max 12 months), plus interest on outstanding balance
- Installment Payments: Required if estimated tax exceeds $3,000 (for 2024) and previous year's tax was over $3,000 - due March 15, June 15, September 15, December 15
Payroll Deductions - Understanding Your Paycheck
Ontario employers use CRA's payroll deduction tables to calculate tax withholdings. Your paycheck shows:
- Federal Tax: Withheld based on TD1 form (personal tax credits return) you complete with employer
- Provincial Tax: Withheld based on Ontario TD1ON form
- CPP: Automatically deducted (5.95% of pensionable earnings)
- EI: Automatically deducted (1.66% of insurable earnings)
- Additional Withholdings: You can request additional tax be withheld if you expect to owe tax (Form TD1)
- Tax Slips: Receive T4 (employment income) by end of February, T4A (pension/other income) by end of March
Important: Tax withholdings are estimates. You may receive a refund or owe additional tax when filing your return, depending on deductions, credits, and other income sources.
Ontario-Specific Considerations
- Highest Provincial Rates: Ontario has the highest provincial tax rates in Canada, making tax planning especially important
- Cost of Living: Higher taxes offset by higher average incomes and comprehensive public services (healthcare, education)
- Tax Planning: Maximize RRSP contributions, claim all eligible credits, and consider income splitting strategies
- First-Time Home Buyer: Ontario offers Land Transfer Tax rebate up to $4,000 for first-time buyers
- Rent Credit: No longer available (eliminated in 2017), but property tax credit still available for renters
Our Ontario tax calculator automatically applies the correct federal and provincial tax rates, CPP contributions, EI premiums, Ontario Health Premium, surtaxes, and accounts for the Basic Personal Amount to give you an accurate estimate of your take-home pay and annual tax liability. The calculator uses the latest 2026 tax brackets and rates published by CRA and the Ontario Ministry of Finance.