Calculate Net Pay Ontario 2017
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Reviewed by Calculator Editorial Team
Calculate your net pay in Ontario for 2017 with our accurate payroll calculator. Understand how gross pay, deductions, and taxes affect your take-home pay.
How to Use This Calculator
Enter your gross pay amount, select your pay frequency, and choose whether you're eligible for the Ontario Health Premium. Click "Calculate" to see your net pay and deductions.
Important Notes
This calculator uses the 2017 Ontario payroll rules. For current year calculations, use our updated Ontario payroll calculator.
Understanding the Results
The calculator shows your net pay after deductions for income tax, Canada Pension Plan (CPP), Employment Insurance (EI), and Ontario Health Premium (if applicable).
Common Deductions
- Income Tax: Based on your taxable income and Ontario tax brackets
- CPP: 4.95% of your earnings (up to the maximum insurable earnings)
- EI: 1.66% of your earnings (up to the maximum insurable earnings)
- Ontario Health Premium: 1.45% of your earnings (if eligible)
Formula Used
The net pay is calculated as follows:
Net Pay Formula
Net Pay = Gross Pay - (Income Tax + CPP + EI + Ontario Health Premium)
Where:
- Income Tax = Gross Pay × Tax Rate (based on Ontario tax brackets)
- CPP = Gross Pay × 4.95% (capped at maximum insurable earnings)
- EI = Gross Pay × 1.66% (capped at maximum insurable earnings)
- Ontario Health Premium = Gross Pay × 1.45% (if eligible)
The tax rates for 2017 were:
- 15% on the first $42,960 of taxable income
- 28.5% on the next $42,960
- 33% on amounts over $85,920
Worked Example
Let's calculate the net pay for someone earning $50,000 gross per year with the Ontario Health Premium.
Example Calculation
Gross Pay: $50,000
Income Tax: $50,000 × 15% = $7,500
CPP: $50,000 × 4.95% = $2,475
EI: $50,000 × 1.66% = $830
Ontario Health Premium: $50,000 × 1.45% = $725
Total Deductions: $7,500 + $2,475 + $830 + $725 = $11,530
Net Pay: $50,000 - $11,530 = $38,470
This means the employee would take home approximately $38,470 after all deductions.
Frequently Asked Questions
What is included in net pay?
Net pay is your take-home pay after deductions for income tax, CPP, EI, and any other mandatory deductions like the Ontario Health Premium.
How do I know if I'm eligible for the Ontario Health Premium?
Eligibility depends on your income level and whether you're covered by an employer health plan. The premium is typically for those with incomes between $35,000 and $60,000.
Are there any other deductions I should be aware of?
Other common deductions might include union dues, retirement contributions, or other voluntary deductions. This calculator focuses on mandatory payroll deductions.
How often should I use this calculator?
You can use this calculator whenever you need to estimate your net pay based on a gross pay amount. For exact figures, use your pay stub or consult your payroll department.