At $75,000 in Ontario, your take-home pay is estimated around $55,616 annually or $4,634 per month. This is where payroll deduction timing starts to get interesting. You’ll hit both the EI and CPP caps before the year ends, which means your last few paycheques will be noticeably higher than your earlier ones.
Use the Ontario calculator to estimate Your take-home pay.
✅ 2026 Tax Data Verified — This guide reflects current CRA payroll rules and Ontario tax thresholds.
How deductions work at $75,000
At this income level, your salary is taxed using a combination of federal and Ontario tax brackets. As income increases, portions of your earnings gradually move into higher marginal brackets, which raises the tax applied to additional income rather than your entire salary.
Employment Insurance (EI) contributions apply only up to the annual maximum insurable earnings threshold of $68,900.
Canada Pension Plan (CPP) contributions also reach the annual maximum before year-end at this salary. The CPP cap applies at the Year’s Maximum Pensionable Earnings (YMPE) of $74,600. Since $75,000 slightly exceeds that threshold, a small portion of your income above the YMPE is subject to CPP Tier 2 contributions.
The Ontario Health Premium at this income level reaches approximately $750 annually. This amount is included within your provincial income tax withholding rather than appearing as a separate payroll deduction. The exact premium can vary slightly depending on taxable income adjustments or available credits.
Why your paycheque changes during the year
At $75,000, you can expect two distinct shifts in your take-home pay as the year progresses.
In January, both CPP and EI deductions reset for the new year. If you maxed out either or both in the previous year, contributions restart. This is standard across all income levels and doesn’t create any unusual changes at the beginning of the year.
The first noticeable change happens sometime between September and November when you hit the EI maximum contribution for the year. Once that threshold is reached, EI deductions stop completely, and your net pay increases for the remaining pay periods. The exact timing depends on your pay schedule—biweekly versus semi-monthly—but the effect is consistent: a small bump in your paycheque once EI stops.
The second change occurs later in the year when you reach the CPP contribution maximum. At $75,000, you’ll hit the annual base CPP ceiling before December, which means CPP deductions stop for your final paycheques. This creates another modest increase in your net pay during the last few pay periods of the year.
The combined effect of both EI and CPP stopping means your November and December paycheques are typically higher than those earlier in the year. The increase isn’t dramatic, but it’s noticeable—usually adding a few hundred dollars per paycheque depending on your pay frequency.
The Ontario Health Premium is calculated annually and distributed evenly across your paycheques, so it doesn’t fluctuate from month to month.
Other factors that might cause your paycheque to vary include:
- Overtime hours worked
- Bonuses or commissions
- Changes to employer-sponsored benefits such as health insurance or RRSP contributions
- Pay calendar variations, especially if you’re paid biweekly and receive an extra paycheque in certain months.
How $75,000 compares to nearby salaries
vs. $70,000
Compared to $70,000, a $75,000 salary results in about $3,078 more in annual take-home pay, or roughly $269 per month. This means you keep approximately 61% of the $5,000 raise after taxes and payroll deductions.
The difference reflects the marginal income tax applied to the additional $5,000, along with CPP and EI contributions on that income. At $75,000, you also move slightly above the Year’s Maximum Pensionable Earnings (YMPE) of $74,600, which means a small portion of income becomes subject to CPP Tier 2 contributions. While this slightly increases deductions, the earlier timing of EI and CPP caps at $75,000 helps offset part of that impact.
vs. $80,000
Compared to $80,000, a $75,000 salary results in about $3,318 less in annual take-home pay, or roughly $277 per month. In other words, moving from $75,000 to $80,000 allows you to keep approximately 66% of the $5,000 raise.
The slightly higher retention occurs because, at $80,000, EI and CPP reach their annual maximums earlier in the year. Once those caps are reached, deductions stop, allowing more late-year paycheques to benefit from reduced payroll contributions. Although marginal tax still applies to the additional income, the earlier cap timing modestly improves overall take-home retention.
| Salary | Annual Net | Monthly Net |
|---|---|---|
| $70,000 | $52,538 | $4,378 |
| $75,000 | $55,616 | $4,634 |
| $80,000 | $58,934 | $4,912 |
FAQs
Why does my paycheque increase toward the end of the year?
At a $75,000 salary, most employees reach the annual maximum for EI and base CPP before the end of the year. EI typically stops first, often between September and November depending on pay frequency. CPP deductions usually stop later in the fall once the base annual maximum is reached. When these deductions stop, your net pay increases for the remaining pay periods of the year. The increase is noticeable but not dramatic.
When exactly will EI deductions stop?
The timing depends on your pay schedule and when your cumulative insurable earnings reach the annual maximum ($68,900). Employees paid biweekly often reach the EI cap earlier than those paid semi-monthly. Once the maximum contribution is reached, EI deductions stop for the remainder of the calendar year.
Does CPP stop at the same time as EI?
No. CPP continues after EI stops because it has a higher earnings threshold. At $75,000, you will reach the base CPP annual maximum later in the year, usually after EI has already stopped. Once the base CPP maximum is reached, deductions cease for the rest of the year, creating a second increase in take-home pay.
What is CPP Tier 2, and does it affect me at this salary?
CPP Tier 2 is an additional contribution that applies to earnings above the Year’s Maximum Pensionable Earnings (YMPE). At $75,000, only a small portion of income above the YMPE falls into the Tier 2 range. You will reach the base CPP maximum, but not the full CPP2 maximum. The additional contribution is relatively small and does not significantly change overall deductions.
How much more will I take home once both CPP and EI stop?
The combined increase varies depending on pay frequency and how many pay periods remain in the year. Most employees see a modest boost in their final paycheques once both EI and base CPP deductions have stopped. The exact amount depends on your payroll schedule and contribution timing.