Payroll Tax Calculator Ontario 2017

Calculate Ontario payroll taxes for 2017 with this professional payroll tax calculator. Understand federal and provincial deductions, Canada Pension Plan (CPP), Employment Insurance (EI), and more.

How to Use This Calculator

This payroll tax calculator for Ontario 2017 helps you determine the total payroll taxes deducted from employee wages. Simply enter the gross salary and select the appropriate tax year, then click "Calculate".

Note: This calculator uses the 2017 tax rates and thresholds. For current year calculations, use our updated Ontario payroll tax calculator.

Input Fields

Gross Salary: Enter the total amount paid to the employee before deductions
Tax Year: Select 2017 for this calculator

Output Results

The calculator provides:

Federal income tax
Provincial income tax (Ontario)
Canada Pension Plan (CPP) contributions
Employment Insurance (EI) premiums
Total payroll taxes
Net salary after deductions

Formula Used

The payroll tax calculation follows these steps:

Total Payroll Taxes = Federal Income Tax + Provincial Income Tax + CPP + EI

Federal Income Tax Calculation

Federal income tax is calculated using progressive tax brackets for 2017:

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

Provincial Income Tax (Ontario)

Ontario uses a flat tax rate for 2017:

Provincial Tax = Taxable Income × 0.0505

Canada Pension Plan (CPP)

CPP is calculated as:

CPP = Gross Salary × 0.0495 (employee portion)

Employment Insurance (EI)

EI premiums are calculated as:

EI = Gross Salary × 0.0168 (employee portion)

Worked Example

Let's calculate payroll taxes for an employee earning $50,000 gross salary in 2017.

Tax Type	Calculation	Amount
Federal Income Tax	$50,000 × 0.15 (first bracket)	$7,500.00
Provincial Income Tax	$50,000 × 0.0505	$2,525.00
CPP	$50,000 × 0.0495	$2,475.00
EI	$50,000 × 0.0168	$840.00
Total Payroll Taxes		$13,340.00
Net Salary	$50,000 - $13,340	$36,660.00

For this example, the total payroll taxes amount to $13,340, leaving the employee with a net salary of $36,660.

Ontario Payroll Tax Rates 2017

The following table shows the 2017 payroll tax rates for Ontario:

Tax Type	Employee Rate	Employer Rate
Federal Income Tax	Progressive (15% first bracket)	Not applicable
Ontario Income Tax	5.05%	Not applicable
Canada Pension Plan (CPP)	4.95%	9.9%
Employment Insurance (EI)	1.68%	2.73%

Note: The federal income tax rates for 2017 were progressive with brackets starting at 15%. The exact rates varied based on income level.

Frequently Asked Questions

What is included in Ontario payroll taxes?

Ontario payroll taxes include federal income tax, provincial income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums.

How do I calculate net salary after payroll taxes?

Subtract the total payroll taxes from the gross salary. The calculator automatically shows the net salary in the results.

Are these rates still valid for current years?

No, these rates are specific to 2017. For current year calculations, use our updated Ontario payroll tax calculator.

What is the difference between CPP and EI?

CPP provides retirement benefits, while EI provides unemployment insurance. Both are mandatory deductions from employee wages.