Payroll Calculator Ontario Free

This free Ontario payroll calculator helps you determine gross pay, deductions, net pay, and taxable income. Simply enter your hourly rate, hours worked, and select your tax bracket to get an instant calculation.

How to Use This Calculator

Using this payroll calculator is simple:

Enter your hourly wage in the "Hourly Rate" field
Input the number of hours worked in the "Hours Worked" field
Select your Ontario tax bracket from the dropdown menu
Click "Calculate" to see your payroll results

The calculator will display your gross pay, deductions, net pay, and taxable income. You can also view a breakdown of your pay in a chart.

Formula Used

The payroll calculation follows these steps:

Gross Pay = Hourly Rate × Hours Worked

CPP Contribution = Gross Pay × 0.0525 (5.25%)

EI Premium = Gross Pay × 0.0162 (1.62%)

Income Tax = Gross Pay × Tax Rate (varies by bracket)

Total Deductions = CPP + EI + Income Tax

Net Pay = Gross Pay - Total Deductions

Taxable Income = Gross Pay - (CPP + EI)

Note: These calculations are simplified and may not account for all deductions or tax credits. For exact payroll calculations, consult a professional payroll service.

Worked Example

Let's calculate payroll for someone earning $25/hour, working 40 hours a week in the 20.5% tax bracket:

Calculation	Value
Gross Pay	$1,000.00
CPP Contribution	$52.50
EI Premium	$16.20
Income Tax (20.5%)	$205.00
Total Deductions	$273.70
Net Pay	$726.30
Taxable Income	$936.30

This example shows how deductions reduce the final net pay. The taxable income is slightly less than gross pay because CPP and EI are deducted before income tax is calculated.

FAQ

Is this calculator accurate for Ontario payroll?

This calculator provides an estimate based on standard Ontario payroll calculations. For exact payroll figures, consult a professional payroll service or the Canada Revenue Agency.

What tax brackets are available?

The calculator includes common Ontario tax brackets: 5%, 12%, 20.5%, 26%, 29%, and 33%. The actual bracket depends on your taxable income.

Does this calculator account for all deductions?

This calculator includes CPP, EI, and income tax. It doesn't account for union dues, health benefits, or other deductions. For a complete payroll calculation, consult a professional.