About Ontario Raise Calc

Why This Calculator Exists

Most salary calculators show you an estimated take-home pay for a given gross income. Ontario Raise Calc does something different: it focuses on the portion of income that has changed — the raise itself — and shows you exactly how much of that increase you actually keep after Ontario and federal tax, CPP contributions, and EI premiums are applied to your new earnings.

That distinction matters. The tax rate on your raise is not the same as your overall effective rate. Because Canada uses a progressive tax system, each dollar of a raise is taxed at your marginal rate — the rate that applies to the top slice of your income. This calculator models that correctly.

What Ontario Raise Calc Estimates

When you enter your current salary and new salary, the calculator estimates the impact of the raise on each of the following:

• Federal income tax — using 2026 CRA brackets and the basic personal amount
• Ontario provincial income tax — including 2026 Ontario brackets and the Ontario basic personal amount
• Ontario surtax — the additional tax on Ontario tax above $5,818 (20%) and $7,446 (+36%)
• CPP contributions — employee CPP1 at 5.95% to the $74,600 YMPE, plus CPP2 at 4.00% between $74,600 and $85,000
• EI premiums — at 1.63% on insurable earnings up to $68,900
• Annual net raise — the dollar amount you keep after all deductions on the raise
• Monthly increase — your net raise divided across 12 months
• Per-pay increase — your net raise divided by your selected pay frequency
• Deduction percentage — the percentage of your gross raise consumed by combined deductions

Everything runs in your browser. No data is sent anywhere or stored.

Who This Calculator Is For

This tool is built for Ontario employees who are receiving or considering a salary increase and want to understand the real after-tax impact. It works for anyone paid through employer payroll — salaried or hourly — who wants to see what a raise actually means for their take-home pay.

It is not designed for self-employed individuals, who face different CPP and tax rules. Self-employment income requires a separate tool with different deduction calculations.

Why Raises Feel Smaller Than Expected

A raise on paper is not the same as a raise in your bank account. Several factors reduce the amount you actually receive:

• Gross raise ≠ take-home raise. Your offer letter shows the gross amount. Your paycheque reflects the net — after income tax, CPP, and EI each take their share.
• Deductions increase with income. CPP and EI contributions rise as your earnings grow, until you hit their annual ceilings. A raise that pushes you past those thresholds changes the mix of deductions on the additional income.
• Tax brackets are marginal. Your raise is not taxed at your average rate — it is taxed at the marginal rate that applies to the highest bracket your new income reaches. In Ontario, that combined rate can exceed 43% for mid-to-high earners.
• CPP and CPP2 increase with earnings. CPP1 applies to earnings up to $74,600. CPP2 applies between $74,600 and $85,000. If your raise pushes you into the CPP2 range, a second layer of pension contributions kicks in on top of CPP1.

When This Calculator Is Useful

• Evaluating a raise — See exactly how much of a proposed salary increase you'll keep after all deductions
• Comparing job offers — Calculate the after-tax difference between two salary figures to make an informed decision
• Promotion planning — Understand the real financial impact of a promotion before accepting new responsibilities
• Budgeting after a raise — Know your actual monthly and per-pay increase so you can plan spending and savings accurately
• Understanding paycheque changes — See why the increase in your net pay is smaller than the gross raise amount on your offer

Part of the Calc-HQ.ca Network

This calculator is part of the Calc-HQ.ca network of Canadian tax and payroll calculators. All calculators in the network use CRA-sourced rates and follow CRA-published calculation methodologies.