Calculating your take-home pay from salary helps you understand how much money you’ll actually receive after taxes. While gross salary shows total earnings, take-home pay reflects what ends up in your bank account. Choose your province from homepage.

Step 1: Start with your gross salary

Gross salary is your total income before taxes or deductions. This is usually the number listed in job offers or employment contracts.

Step 2: Estimate your effective tax rate

Unlike a flat tax, Ontario uses a progressive tax system.

• Federal Tax: We apply the five federal tax brackets.
• Provincial Tax: We apply the five Ontario-specific brackets. Your “Effective Tax Rate” is the average of these combined. Our calculator identifies exactly which dollar amount falls into which bracket to ensure accuracy.

Step 3: Subtract taxes to find take-home pay

Before you reach your “Net Pay,” we calculate mandatory federal contributions:

• Canada Pension Plan (CPP): We calculate the 5.95% contribution (minus the basic exemption) up to the annual maximum pensionable earnings.
• Employment Insurance (EI): We apply the current 1.63% premium rate up to the annual insurable earnings limit.

Use a take-home pay calculator

Manually calculating take-home pay can be time-consuming. To get a fast estimate, you can use our take-home calculator depending on your province to instantly see your estimated annual and monthly income.