CRA Paycheck Calculator (Ontario, 2024)
Estimate your net pay in Ontario for 2024, considering federal and provincial income tax, EI, and CPP contributions. This calculator provides an estimate and should not be considered professional tax advice.
Your Estimated Paycheck Breakdown:
Gross Pay:
Federal Income Tax:
Ontario Income Tax:
EI Premiums:
CPP Contributions:
Other Deductions:
Net Pay:
Understanding Your Canadian Paycheck
Navigating your Canadian paycheck can sometimes feel complex, with various deductions impacting your take-home pay. This CRA Paycheck Calculator for Ontario (2024) helps you understand the breakdown of your gross salary into net pay, considering the key deductions mandated by the Canadian government.
Gross Annual Salary
This is your total earnings before any deductions. It's the amount your employer agrees to pay you for your work over a year.
Pay Frequency
Your pay frequency determines how often you receive your salary (e.g., weekly, bi-weekly, monthly). The calculator converts your annual salary and deductions to match your chosen frequency for a clear per-pay-period breakdown.
Federal Income Tax
The federal government collects income tax based on a progressive tax system, meaning higher earners pay a larger percentage of their income in tax. For 2024, federal tax rates range from 15% to 33% across different income brackets. A basic personal amount (BPA) is applied as a non-refundable tax credit, reducing the amount of federal tax you owe.
Provincial Income Tax (Ontario)
In addition to federal tax, each province and territory has its own income tax rates. This calculator uses Ontario's 2024 provincial tax rates, which also follow a progressive structure. Similar to federal tax, Ontario has its own basic personal amount that acts as a non-refundable tax credit.
Employment Insurance (EI) Premiums
EI provides temporary financial assistance to unemployed Canadians who have lost their jobs through no fault of their own, or are on maternity, parental, sickness, or compassionate care leave. Employees contribute a percentage of their insurable earnings up to a maximum annual amount. For 2024, the EI premium rate is 1.66% on insurable earnings up to $63,200, with a maximum annual premium of $1,049.12.
Canada Pension Plan (CPP) Contributions
CPP is a contributory, earnings-related social insurance program that provides retirement, disability, and survivor benefits. Both employees and employers contribute to the CPP. For 2024, the employee contribution rate is 5.95% on earnings between the basic exemption ($3,500) and the first earnings ceiling ($68,500), plus an additional 4% on earnings between the first and second earnings ceiling ($73,200). The maximum annual employee contribution for 2024 is $4,055.50.
Other Deductions
This category accounts for any additional deductions that might come off your gross pay, such as Registered Pension Plan (RPP) contributions, union dues, health benefits, or other voluntary deductions. You can enter this as a percentage of your gross salary.
Net Pay
Your net pay is the amount of money you actually take home after all federal and provincial taxes, EI, CPP, and other deductions have been subtracted from your gross pay. It's the final amount that gets deposited into your bank account.
This calculator is designed to give you a general understanding of your paycheck. For precise figures, always refer to your official pay stubs or consult with a financial advisor or the Canada Revenue Agency (CRA).