ONTARIO PAYROLL GUIDE 2026
Ontario Take-Home Pay and Payroll Deductions 2026
See how federal and Ontario income tax, CPP, CPP2, EI and the Ontario Health Premium turn gross salary into take-home pay. The examples below use the same 2026 tax engine as our calculator.
$60,000 annual net
$47,339.75
$60,000 monthly net
$3,944.98
$60,000 biweekly net
$1,820.76
What comes off an Ontario paycheque?
Federal income tax
Calculated with federal tax brackets and credits. Canada uses marginal rates, so a higher bracket applies only to income inside that bracket.
Ontario income tax
Calculated separately with Ontario brackets and credits, then combined with federal tax on payroll.
CPP and CPP2
CPP applies to pensionable earnings above the basic exemption. CPP2 can apply above the first earnings ceiling. Both have annual maximums.
Employment Insurance (EI)
EI premiums apply to insurable earnings until the annual employee maximum is reached.
Ontario Health Premium
This income-based amount is collected through Ontario income tax. It is separate from workplace benefit-plan premiums.
Other employer deductions
Benefits, pension plans, union dues or RRSP contributions may also appear, but they depend on your employer and are not included here.
$60,000 salary deduction example
Total deductions$12,660.25
Annual take-home$47,339.75
Average weekly net$910.38
$80,000 salary: how the take-home changes
At $80,000 gross, the estimated annual take-home is $60,302.62, or about $5,025.22 per month and $2,319.33 biweekly.
The deduction percentage can rise as income enters higher marginal tax brackets, while CPP and EI stop after their annual maximums are reached.
Frequently asked questions
What is deducted from an Ontario paycheque?
A regular T4 employee will usually see federal income tax, Ontario income tax, Canada Pension Plan contributions and Employment Insurance premiums. Ontario income tax can also include the Ontario Health Premium.
What is CPP2?
CPP2 is the second additional Canada Pension Plan contribution on pensionable earnings above the first annual earnings ceiling and up to the second ceiling. It stops once the annual maximum is reached.
Why can my paycheque differ from this estimate?
Payroll frequency, TD1 credits, benefits, bonuses, RRSP deductions, multiple jobs and year-to-date maximums can change withholding on an individual paycheque.
These 2026 estimates are for general comparison and assume regular T4 employment income. Your TD1 credits, benefits, RRSP deductions, bonuses and payroll schedule can change the actual amount.