Take an Ontario employee paid $2,884.62 every two weeks, which works out to about $75,000 a year. After deductions, $2,181.38 reaches the bank. Federal tax takes $325.72, Ontario tax $171.00, CPP $163.33 and EI $43.20. Type your own pay above and the same breakdown appears.
What comes off your paycheque
Four items leave before you see a dollar: federal income tax, Ontario income tax, Canada Pension Plan contributions and Employment Insurance premiums. An RRSP contribution made through work joins them. That is the whole gap between gross pay and the deposit.
How each deduction is set
Income tax follows the 2026 federal and Ontario brackets, softened by the basic personal amount. CPP takes 5.95% of earnings between $3,500 and $74,600, capped at $4,230.45 a year, plus a further 4% on earnings up to $85,000. EI charges 1.63% on earnings up to $68,900, with a maximum of $1,123.07.
Reading the example
On $75,000, deductions total $703.24 per pay, or 24.4% of gross. Income tax is the biggest piece at $496.72, and CPP and EI together add $206.53. The last line gives net pay per period and per year. Budget from that figure, not from the gross.
When your pay changes during the year
CPP and EI stop once you hit the yearly maximums. Higher earners therefore see net pay climb late in the year. The calculator spreads the yearly total evenly across pay periods, so an actual pay stub may differ by a few dollars.
RRSP at work
Enter an RRSP amount to test it. Payroll contributions cut the tax withheld right away, so take-home pay falls by less than you put in. At a 29.65% marginal rate, a $100 contribution lowers take-home pay by about $70.
What is not included
Union dues, benefits premiums, pension plans and taxable benefits are left out. So is Quebec, which runs its own pension plan and parental insurance. Bonuses and overtime count as extra income, and the bonus tax calculator shows how much of them you keep.
Employer costs you do not see
Your employer matches your CPP rate and pays EI at 1.4 times your premium. None of that comes off your pay, yet it is part of what you cost. Some employers would rather offer a raise through benefits, which carry no payroll tax.
From one cheque to a year
Multiply the example’s $2,181.38 by 26 pay periods and you get about $56,716 in a year. That leaves roughly $18,284 of the $75,000 gross going to deductions, which is a useful number to have before you accept an offer. A weekly or semi-monthly schedule changes the size of each cheque. It leaves the yearly total alone.
Checking your pay stub
Put the CPP and EI lines from your stub next to the calculator’s numbers. Small gaps are normal. A big one is worth a question to payroll. Also confirm your TD1 tax credit form is current, because a wrong claim amount means too much or too little tax is withheld.
Where to go next
Want the view for a yearly salary? Try the take-home pay calculator. The income tax calculator covers the full tax picture, and the hourly to salary calculator helps when you are weighing a raise.
Frequently asked questions
What is deducted from my paycheque in Ontario?
Federal and Ontario income tax, CPP and EI, plus anything like RRSP or union dues you choose or agree to.
How much CPP will I pay in 2026?
5.95% of earnings between $3,500 and $74,600, up to $4,230.45, with a further 4% on earnings up to $85,000.
What is the EI rate for 2026?
1.63% of earnings up to $68,900, for a maximum of $1,123.07.
Why is my real pay stub different?
Payroll systems calculate tax in steps through the year, and CPP and EI stop at their maximums.
Does an RRSP contribution lower my tax at work?
Yes. Contributions taken through payroll reduce the tax withheld right away.
Does this work for Quebec?
No. Quebec has its own pension plan, parental insurance and provincial return.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.