Payroll · Ontario
Ontario take-home pay.
What lands in your account after Ontario and federal tax, CPP and EI — using CRA’s own payroll formulas.
An Ontario paycheque calculator for 2026, following CRA’s T4127 Payroll Deductions Formulas. Enter your gross pay and frequency and it itemises every statutory deduction.
Ontario withholds two things no other province does: the Ontario surtax and the Ontario Health Premium. On a $120,000 salary they are worth about $1,390 a year between them, and both come off your cheque during the year rather than arriving at filing time.
Inputs
Your Ontario paycheque
Fill the form and press Calculate.
What comes off an Ontario paycheque
Five things, and one of them exists nowhere else in Canada:
- Federal income tax — 2026 brackets, basic personal amount of $16,452 phasing down to $14,829, plus the Canada Employment Amount of $1,501.
- Ontario income tax — 5.05% to 13.16%, basic personal amount $12,989.
- The Ontario surtax — withheld at source as CRA’s factor V1: 20% of Ontario tax over $5,818 and a further 36% over $7,446.
- The Ontario Health Premium — CRA’s factor V2, up to $900 a year, taken in instalments from every cheque.
- CPP and EI — 5.95% plus CPP2 at 4%, and 1.63% respectively.
An Ontario employee earning six figures is therefore paying a surtax and a health premium that a British Columbian on the same salary is not, on top of a provincial rate that is broadly similar. On $120,000 that gap is worth roughly $1,700 a year of net pay. It is the entire reason a national paycheque calculator is a poor guide for Ontario.
CPP and EI in 2026
These are federal and identical in Ontario to the rest of Canada outside Quebec.
- CPP: 5.95% of pensionable earnings between the $3,500 basic exemption and the $74,600 first ceiling — a maximum employee contribution of $4,230.45.
- CPP2: a further 4% on earnings between $74,600 and the second ceiling of $85,000, a maximum of $416.00.
- EI: 1.63% of insurable earnings up to $68,900, a maximum employee premium of $1,123.07.
Both stop once the ceiling is reached, which is why take-home pay rises partway through the year for higher earners. Only 4.95 of the 5.95 CPP points earn a tax credit; the remaining 1% and all of CPP2 are deducted from taxable income instead, which is worth roughly $300 of tax at a six-figure Ontario salary.
How this is calculated
The numbers follow CRA’s T4127 Payroll Deductions Formulas, the same publication that produces CRA’s own T4032 deduction tables and every certified payroll package in the country. It assumes a full year at a constant salary and TD1 claim code 1 — the basic personal amount and nothing else.
If you claim other TD1 credits, or your employer takes a registered pension contribution, union dues or group benefits, your real cheque will differ. Those are employer-side and TD1-side inputs the CRA formula takes but this page does not ask for.
Sources
Every rate, threshold and ceiling on this page is taken from the official publication linked below. Last verified 2 September 2026.
- CRA T4127 — Payroll Deductions Formulas — the governing source for every withholding figure on this page. Two 2026 editions exist: the 122nd, effective 1 January 2026, and the 123rd, effective 1 July 2026 and currently in force. This page uses full-year annual rates, not the prorated mid-year catch-up rates the 123rd edition publishes for July–December withholding.
- Government of Canada — CPP contribution rates, maximums and exemptions — 5.95% to $74,600, CPP2 at 4% to $85,000
- CRA — EI premium rates and maximum insurable earnings — 1.63% to $68,900 outside Quebec, 1.30% in Quebec
- CRA T4032ON — Ontario rates, basic personal amount, surtax and tax reduction
- Government of Ontario — Personal income tax and the Ontario Health Premium
Frequently asked questions
Why is my Ontario paycheque smaller than a national calculator says?
Because Ontario withholds two charges that most national calculators ignore: the Ontario surtax and the Ontario Health Premium. On a $120,000 salary they come to about $1,390 a year between them, and on $150,000 about $3,260.
CRA’s T4127 formulas treat both as explicit factors, V1 and V2, in the withholding calculation, so they come off every cheque rather than arriving as a surprise at filing time.
Is the Ontario Health Premium taken off each paycheque?
Yes. It is withheld in instalments through the year as CRA factor V2 rather than billed separately, so it shows up as part of your provincial tax line on most pay stubs.
At a $85,000 salary it is $750 a year, which is roughly $29 per biweekly cheque.
How much is CPP and EI on an Ontario paycheque in 2026?
CPP is 5.95% of earnings between $3,500 and $74,600, capped at $4,230.45, plus CPP2 at 4% on earnings from $74,600 to $85,000, capped at $416.00. EI is 1.63% up to $68,900 of insurable earnings, capped at $1,123.07.
Both are the same in Ontario as everywhere outside Quebec, which runs its own pension and parental insurance plans at different rates.
Why does my take-home pay go up later in the year?
Because CPP and EI stop once you hit the annual ceilings. An Ontario employee earning $120,000 finishes their EI premiums around September and their CPP2 contributions shortly after, and every cheque after that is larger.
Income tax withholding does not stop, so the increase is limited to the CPP and EI lines.
Disclaimer
Estimate only — not tax or payroll advice. Follows CRA’s T4127 Payroll Deductions Formulas for a full year at a constant salary on TD1 claim code 1. Your real cheque depends on your TD1 claims, pension and union deductions, taxable benefits and mid-year changes. Confirm anything that matters with the CRA or a payroll professional.