In 2026, If you earn $72,000 or more in Ontario, you might notice a sudden “raise” in your take-home pay during the later months of the year. This isn’t a bonus from your boss—it’s actually because you’ve hit your Employment Insurance (EI) contribution cap.
Calculate your Ontario take-home pay and check the hub for more details.
While many people notice their paycheque increase around this income level, the actual timing and impact depend on how you’re paid and your total earnings for the year. This page explains why the change happens, but the only way to see how it affects your pay is to calculate your take-home pay based on your own details.
✅ 2026 Tax Data Verified — This guide reflects current CRA payroll rules and Ontario tax thresholds.
How EI works
Earning $72,000 in Ontario places you near a payroll transition point where your take-home pay can increase slightly toward the end of the year. This change is primarily driven by Employment Insurance (EI) contributions reaching their annual maximum.
Once you earn approximately $68,900, EI deductions stop for the remainder of the year, immediately removing the 1.63% EI deduction from your paycheque. While you will continue to pay CPP Tier 1 throughout the year at this income level, you remain below the CPP Tier 2 threshold, meaning no enhanced CPP contributions apply.
As a result, many workers earning around $72,000 notice a modest increase in their net pay during the final months of the year. This EI cutoff can add roughly $80–$120 per month back into take-home pay, providing a small but noticeable boost as the year comes to an end.
When EI stops during the year
Earning $72,000 in Ontario places you near a payroll transition point where your take-home pay can increase slightly toward the end of the year. This change is driven by Employment Insurance (EI) contributions reaching their annual maximum.
EI is deducted from each paycheque as a percentage of your insurable earnings, but only up to the yearly cap. Once your total earnings reach approximately $68,900, EI deductions stop
Why your paycheque increases in Q4
Your gross salary stays the same, but your net pay increases because the 1.63% EI deduction is removed. This change often shows up in October, November, or December, depending on your pay frequency. While the increase is modest, it is noticeable and can add roughly $80 to $120 per month back into your take-home pay for the rest of the year.
Importantly, this increase is not a raise and does not involve CPP changes at this income level—it is simply the result of EI contributions reaching their yearly limit.
Frequently asked questions
Does EI ever stop mid‑year?
Yes. At a salary of around $72,000, you may start to see an increase in your take-home pay later in the year because Employment Insurance (EI) contributions stop once you reach the annual maximum. After you hit this cap, EI is no longer deducted from your pay for the rest of the year, which increases your net paycheck even though your gross salary stays the same.
Does CPP also stop when EI stops?
No. At a salary of around $72,000, EI contributions may stop once you reach the annual maximum, but CPP contributions continue. This is because the CPP maximum contribution threshold is higher than EI, so CPP deductions usually keep coming off your paycheque even after EI has stopped.
When does EI stop in Ontario?
EI stops once your year-to-date insurable earnings reach the annual maximum (around $68,900 in 2026). At a salary of about $72,000, this usually happens before December, so EI deductions typically stop for the remaining pay periods of the year.
→ Use Ontario Take-Home calculator to estimate out how much EI will be deducted from your paycheck.