At $42,000 in Ontario, your take-home pay is estimated $33,532 annually or $2,794 per month.

At this income level, payroll deductions are straightforward and predictable. Your paycheque stays consistent all year because you’re well below the thresholds where CPP or EI stop mid-year. What you see in January is what you’ll see in December.

Calculate your take-home pay after taxes in Ontario, and explore our salary hub for additional income examples.

How deductions work at $42,000

At this salary, federal and provincial taxes apply at the base rates. Your entire income falls within the lower tax brackets, so you’re not crossing into higher tiers where marginal rates increase significantly.

CPP deductions continue throughout the year. Since $42,000 is far below the annual maximum pensionable earnings ceiling of $74,600, CPP applies to every paycheque without interruption.

EI deductions also run for the full year. The annual cap applies at $68,900 in insurable earnings.

Ontario’s Health Premium totals approximately $450 annually at this income. It’s included in your provincial tax withholding rather than shown separately on your paystub. Some households may also qualify for the Ontario Trillium Benefit, depending on prior-year income and housing costs. Eligibility is based on total household circumstances rather than salary alone.

Why your paycheque changes during the year

At $42,000, your paycheque should stay nearly identical throughout the year.

In January, CPP and EI reset, but since you don’t hit either cap, this doesn’t create any noticeable difference. Deductions simply continue as they did the previous year.

Mid-year, nothing changes. You’re below all annual thresholds, so CPP and EI keep deducting at the same rate on every pay.

Ontario’s Health Premium is spread evenly across your paycheques, so it doesn’t fluctuate month to month.

If your take-home does vary, it’s usually because of:

• Changes in hours worked, especially if you’re hourly
• Overtime pay, which can temporarily increase withholding
• Adjustments to employer benefits like health insurance or pension contributions
• Pay calendar timing, particularly if you’re paid biweekly and occasionally receive three paycheques in a month

At this income, the structure is simple. Your paycheque in February looks the same as your paycheque in November.

How $42,000 compares to nearby salaries

vs. $40,000

Compared to $40,000, a $42,000 salary results in about $1,466 more in annual take-home pay, or roughly $122 per month. This means you keep approximately 73% of the $2,000 raise after taxes and payroll deductions.

At this income level, retention is relatively high because you’re sitting in the lower tax brackets. The marginal tax rate is modest, and since both salaries stay well below the CPP and EI caps, there are no threshold effects reducing what you keep. The main deductions come from base income tax and standard payroll contributions.

vs. $45,000

Compared to $42,000, a $45,000 salary results in about $2,202 more in annual take-home pay, or roughly $184 per month. This means you keep approximately 73% of the $3,000 raise after taxes and payroll deductions.

Retention stays consistent in this range because both salaries fall within similar tax brackets and well below all payroll caps. The marginal tax rate doesn’t jump significantly between $42,000 and $45,000, so the percentage you retain remains steady. As income increases further, retention may improve slightly once you move past certain benefit clawback zones or approach areas where credits phase out less steeply.

Salary	Annual Net	Monthly Net
$40,000	$32,066	$2,672
$42,000	$33,532	$2,794
$45,000	$35,734	$2,978

FAQs

Is $42,000 a good salary in Ontario?

It depends on individual circumstances. At $42,000, income is generally considered on the lower end in Ontario, particularly in higher-cost cities. Housing costs, family size, and overall household income will significantly affect whether this salary feels manageable or restrictive.

Can I qualify for the Ontario Trillium Benefit at $42,000?

Possibly. Eligibility for the Ontario Trillium Benefit depends on several factors, including total household income, family composition, rent or property taxes paid, and prior-year tax filings. Salary alone does not determine qualification.