Frequently Asked Questions

This tool produces a close estimate for most salaried Ontario employees with straightforward situations. It uses official 2026 rates and applies the basic personal amount. It will not match your exact payslip if you have RRSP deductions, other TD1 credits, employer pension plans, union dues, or taxable benefits. For precise deductions, use the CRA's Payroll Deductions Online Calculator at canada.ca.

No. The calculator runs entirely in your browser. Nothing you enter is ever transmitted to a server. This is a fully static site with no backend. Your income and results disappear when you close or refresh the page.

No. This calculator is designed for employees. Self-employed individuals pay both the employee and employer share of CPP (11.9%), may have different EI arrangements, and have different tax filing requirements. A separate tool is appropriate for self-employment income.

The 2026 federal brackets are: 14% on the first $58,523; 20.5% on $58,523–$117,045; 26% on $117,045–$181,440; 29% on $181,440–$258,482; and 33% on income over $258,482. The 14% bottom rate is fully in effect for the first time in 2026, having been reduced from 15% starting July 1, 2025.

The Basic Personal Amount (BPA) is the amount of income on which no federal tax is owed. For 2026, the federal BPA is $16,452 for most earners. This translates to a non-refundable tax credit of approximately $2,303 (16,452 × 14%), which is subtracted from your calculated federal tax. Ontario has its own BPA of $12,399, providing a provincial credit of approximately $626.

Your marginal rate is the rate that applies to your last dollar of income — for example, if you earn $80,000, your marginal federal rate is 20.5%. Your effective rate is your total tax divided by your total income, which is always lower than your marginal rate because the lower brackets apply to the earlier portions of your income. At $80,000, your effective federal rate is typically around 12–14%.

Ontario's 2026 provincial brackets are: 5.05% on the first $53,891; 9.15% on $53,891–$107,785; 11.16% on $107,785–$150,000; 12.16% on $150,000–$220,000; and 13.16% on income above $220,000. These brackets are indexed to inflation at 1.9% for 2026.

Ontario applies a surtax on top of your basic provincial tax — not directly on income. For 2026, a 20% surtax applies to Ontario tax exceeding $5,818, and an additional 36% surtax applies to Ontario tax exceeding $7,444. This significantly increases the effective provincial rate for middle and higher earners. The calculator includes this surtax in all Ontario tax estimates.

The Ontario Health Premium (OHP) is an annual charge collected through the provincial tax system. It applies to Ontario residents with taxable income over $20,000, ranging from a few dollars to a maximum of $900 per year (for incomes above $200,600). It is not deducted per pay period — it is settled at tax filing as part of your provincial tax return.

For 2026: CPP1 applies at 5.95% on employment earnings between $3,500 (basic exemption) and $74,600 (YMPE), for a maximum employee contribution of $4,230.45. CPP2 (enhanced CPP) applies at 4.00% on earnings between $74,600 and $85,000 (YAMPE), for a maximum of $416.00. Total maximum CPP+CPP2 is $4,646.45.

CPP contributions stop once you reach the annual maximum. For CPP1 in 2026, the maximum is $4,230.45. For higher earners, CPP2 continues until the $416 maximum is reached. Once you hit the maximums, no more CPP is deducted for the rest of the calendar year. This can make your paycheques slightly larger later in the year.

For 2026, Ontario employees pay EI at $1.63 per $100 of insurable earnings (down from $1.64 in 2025), on the first $68,900 of insurable income. The maximum annual employee EI premium is $1,123.07. Once this maximum is reached, no further EI is deducted for the year.

No. CPP contributions build your future Canada Pension Plan retirement benefit. The more you contribute during your working years, the higher your CPP pension will be when you retire. It functions more like forced savings than a tax. EI contributions similarly provide you with income replacement insurance if you lose your job or need to take eligible leave.

No. Your total annual tax, CPP, and EI deductions are the same regardless of pay frequency. Whether you are paid weekly, bi-weekly, semi-monthly, or monthly, you pay the same total amount over the year. What changes is only how that total is divided across pay periods.

Several factors can make your actual paycheque different: RRSP contribution deductions, employer pension plan deductions, union dues, taxable benefits added to your income, additional TD1 claims (other credits), provincial tax reduction for low-income earners, or mid-year changes to your income or status. Your employer uses CRA payroll tables per pay period, which can also produce small differences from an annualized estimate.

The most effective way to reduce payroll tax deductions is to contribute to an RRSP. Your employer can adjust your withholding based on expected RRSP contributions with a letter of authorization from the CRA. Other options include claiming eligible credits on your TD1 form (disability, caregiver, tuition) or ensuring all eligible deductions are captured when you file your annual tax return.