Calculators

Net salary calculator from annual gross income in Ontario 2020

       
Salary frequencyGross income ($)Net income ($)
Annual
(once a year)
Monthly
(month)
Semimonthly
( 1/2 month)
Biweekly
(2 weeks)
Weekly
(week)
Hourly
(hour)
% marginal taxAverage % of taxPayable taxNet income after tax

Tax Breakdown

Federal tax
Marginal tax rate CanadaTaxation in CanadaAdditional amount for BPA increased (already subtracted from payable taxes)
Ontario tax
Marginal tax rate OntarioOntario tax

Ontario Surtax

Surtax for Ontario only apply for income tax over 4638$ for 2020

Ontario surtax RateSurtax Amount
Total surtax:

Employee (by an employer)

CPPEmployment Insurance benefits (EI)

Self-employed (sole proprietorship)

CPP (self-employed)Employment Insurance benefits (EI)

Total net income

After-tax income, annuities and insurance

Net income employeeNet income self-employed

This net income calculator provides an overview of an annual, weekly or hourly wage based on annual gross income of 2020.

Fill the weeks and hours sections as desired to get your personal net income. This calculator is based on 2020 Ontario taxes.

Formula for calculating net salary

The annual net income is calculated by subtracting the amounts related to the tax (Canada Tax and Ontario Tax), the Ontario surtax, the Canadian Pension Plan, the Employment Insurance.

Gross annual income – Taxes – Surtax – CPP – EI = Net annual salary
Net annual salary / Weeks of work / year = Net weekly income
Net weekly income / Hours of work / week = Net hourly wage

Calculation example

Take, for example, a salaried worker who earns an annual gross salary of $ 25,000 for 40 hours a week and has worked 52 weeks during the year.

$25 000 – Taxes – Surtax – CPP – EI = $20 802.48 / year (net)
$20 802.48 / 52 weeks = $400.05 / week (net)
$400.05 / 40 hours = $10.00 / hour (net)

All you need to do is use same division for the gross income based on the annual gross salary (line 2 and 3).

Number of Times the payment has to be made

In Ontario, normally you would have to make the payment in every two weeks. However, there is a possibility of variation and you would want to know the other pay periods that may be following them (based on an entire year of 52 weeks):

  • Annual (year-round, only once a year)
  • Monthly (a month, 12 periods per year)
  • Semimonthly (2 x per month, 24 periods per year)
  • Biweekly (every 2 weeks, 26 periods a year)
  • Weekly (once per week, 52 periods a year)
  • Schedule (per hour, 52 weeks x number of hours per week)

TAX CALCULATION

The following net and gross income calculator is not dedicated to the calculation of the tax itself. For further details to know how to calculate the Income tax for Ontario in 2020 for a detailed analysis.

WHAT IS NET INCOME

The net income is the culmination of the total income (all sources of revenues also called gross income) where all taxes and other deduction have been subtracted.

All sources of gross income include:

  • Employment and/or self-employment salary
  • Tips or other form of revenue
  • All pensions
  • Capital gains
  • And more

All sources of taxes and deductions include:

  • Canada Tax (federal)
  • Ontario Tax (provincial)
  • Ontario surtax (provincial)
  • CPP
  • EI
  • And more

All sources of gross income include:

  • Employment and/or self-employment salary
  • Tips or other form of revenue
  • All pensions
  • Capital gains
  • And more

All sources of taxes and deductions include:

  • Canada Tax (federal)
  • Ontario Tax (provincial)
  • Ontario surtax (provincial)
  • CPP
  • EI
  • And more

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