Annual deductions:
- Federal tax: $6,193
- Ontario tax: $2,625
- CPP: $3,362
- EI: $978
2026 federal and provincial/territorial brackets, plus CPP (5.95% to the $74,600 YMPE, plus CPP2 at 4% up to $85,000) and EI (1.63% up to $68,900). Quebec residents actually pay QPP and QPIP instead of CPP/EI and receive a federal abatement - the Quebec figures here are an approximation, not the QPP/QPIP calculation. The federal Basic Personal Amount's phase-out above $181,440 isn't modeled. Not tax advice - confirm with the CRA or a tax professional.
How much income tax do you pay in Ontario?
On a $60,000 salary in Ontario, combined federal and provincial income tax is $8,818 for 2026 - $6,193 federal and $2,625 provincial. After $4,340 of CPP and EI, take-home pay is $3,904 a month, or $1,802 every two weeks, keeping 78.1% of gross pay.
How do you get a tax refund in Ontario?
A refund is not extra money - it is the difference between the tax withheld from your pay all year and the tax you actually owed. If your employer withheld more than the $8,818 owed on a $60,000 salary, the excess comes back when you file. Withhold too little and you owe instead.
What increases your refund the most?
RRSP contributions are the largest lever for most people: a contribution reduces taxable income directly, so it is refunded at your marginal rate rather than the lowest one. Tuition, medical expenses above the threshold, childcare, and donation credits also reduce tax owed and therefore raise any refund.
Ontario tax refund: how it works
A tax refund is not a bonus. It is the gap between what your employer withheld from every paycheque and what you genuinely owed once the year closed. This calculator gives you the second number - the tax actually owed on your income in Ontario. Compare it against the total shown in box 22 of your T4, and the difference is your refund or your balance owing.
The most effective way to increase a refund is to reduce taxable income before the year ends. An RRSP contribution does exactly that, and it is refunded at your marginal rate - the rate on your last dollar earned, not your average. A TFSA works the opposite way: contributions are not deductible, so they never affect a refund, but growth and withdrawals are tax-free.
Ontario take-home pay by salary
| Salary | Total tax | CPP + EI | Monthly take-home |
|---|---|---|---|
| $40,000 | $4,661 | $2,824 | $2,710 |
| $60,000 | $8,818 | $4,340 | $3,904 |
| $80,000 | $14,748 | $5,569 | $4,974 |
| $100,000 | $20,771 | $5,769 | $6,122 |
| $150,000 | $40,875 | $5,769 | $8,613 |
Ontario provincial tax brackets for 2026
Ontario taxes income in 5 provincial brackets, from 5.05% on the first dollars up to 13.16% on taxable income above $220,000. These apply on top of the federal brackets, and the provincial basic personal amount of $12,989 is the 12th highest of the 13 provinces and territories. Ontario also adds a surtax once provincial tax passes $5,818, which this calculator includes.
| Taxable income | Ontario rate |
|---|---|
| $0 to $53,891 | 5.05% |
| $53,891 to $107,785 | 9.15% |
| $107,785 to $150,000 | 11.16% |
| $150,000 to $220,000 | 12.16% |
| Over $220,000 | 13.16% |
How Ontario compares
On a $60,000 salary, Ontario ranks 2nd of 13 for take-home pay, at $46,843 a year. Nunavut leaves the most, $885 a year more than Ontario, while Quebec leaves the least at $43,438. Federal tax, CPP and EI are the same in every province outside Quebec, so the gap comes from provincial tax: $2,625 here against $1,740 in Nunavut.
Frequently asked questions
$8,818 in combined federal and provincial income tax for the year - $6,193 federal and $2,625 provincial. After CPP and EI, take-home is $3,904 a month.
$12,989 for 2026 - the income you can earn before paying Ontario provincial tax. The federal Basic Personal Amount is separate, at $16,452.
The top Ontario provincial bracket is 13.16%, combined with the federal top rate of 33% on income above $258,482 - plus CPP and EI on the portions still within their limits.
Yes - CPP (5.95% to the $74,600 limit, plus CPP2 at 4% to $85,000) and EI (1.63% to $68,900) are both deducted before the take-home figure.
Other provinces
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Reviewed by Raja Jahangir · Last reviewed: October 2026