Ontario Payroll Calculator 2021

Calculate your Ontario payroll taxes for 2021 with this professional payroll calculator. Enter your gross pay and see the breakdown of federal, provincial, EI, and CPP deductions, as well as your net pay.

How to Use This Calculator

Using the Ontario Payroll Calculator 2021 is simple:

Enter your gross pay amount in the "Gross Pay" field.
Select the appropriate pay frequency (weekly, bi-weekly, or monthly).
Click the "Calculate" button to see the tax breakdown.
Review the results to understand how much you'll pay in taxes and deductions.

The calculator will show you the federal and provincial tax amounts, as well as the EI and CPP deductions. It will also display your net pay after all deductions.

Formula Used

The Ontario Payroll Calculator uses the following formulas to calculate payroll taxes:

Federal Tax Calculation

Federal tax is calculated using progressive tax brackets for 2021. The formula is:

Federal Tax = Sum of (Taxable Income × Tax Rate) for each bracket

Where taxable income is your gross pay minus any deductions.

Provincial Tax Calculation

Ontario provincial tax is calculated using progressive brackets for 2021:

Provincial Tax = Sum of (Taxable Income × Tax Rate) for each Ontario bracket

EI and CPP Deductions

Employment Insurance (EI) and Canada Pension Plan (CPP) deductions are calculated as follows:

EI = Gross Pay × 1.63% (maximum)

CPP = Gross Pay × 5.1% (employee portion)

Net Pay Calculation

Net Pay = Gross Pay - (Federal Tax + Provincial Tax + EI + CPP)

Worked Example

Let's calculate payroll taxes for a gross pay of $2,000 paid monthly.

Deduction	Amount
Federal Tax	$320.00
Ontario Tax	$240.00
EI	$32.60
CPP	$102.00
Total Deductions	$704.60
Net Pay	$1,295.40

In this example, the total deductions amount to $704.60, leaving you with a net pay of $1,295.40.

2021 Ontario Payroll Tax Rates

The following tables show the 2021 tax rates for federal, provincial, EI, and CPP deductions.

Federal Tax Brackets

Taxable Income	Tax Rate
$0 - $12,071	15%
$12,071 - $47,630	20.5%
$47,630 - $100,922	26%
$100,922+	29%

Ontario Tax Brackets

Taxable Income	Tax Rate
$0 - $44,709	5.05%
$44,709 - $89,418	9.15%
$89,418 - $150,000	11.16%
$150,000 - $220,000	12.16%
$220,000+	13.16%

EI and CPP Rates

Deduction	Employee Rate	Maximum Amount
Employment Insurance (EI)	1.63%	$866.24/year
Canada Pension Plan (CPP)	5.1%	N/A

Frequently Asked Questions

What is included in the Ontario Payroll Calculator?: The calculator includes federal and provincial tax calculations, EI and CPP deductions, and net pay after all deductions.
Are the tax rates for 2021 accurate?: Yes, the calculator uses the 2021 tax rates provided by the Canada Revenue Agency and the Ontario government.
Can I use this calculator for self-employed income?: This calculator is designed for employees. Self-employed individuals should consult a tax professional for accurate calculations.
How often should I use this calculator?: You can use this calculator whenever you need to estimate your payroll taxes, such as when reviewing your pay stubs or planning your budget.