How Much $110k After Tax in Ontario?

Tax Rates on $110k in Ontario

An individual earning $110,000 annually in Ontario would fall into the 43.41% marginal tax bracket for 2023. This means every additional dollar earned above $110,000 is taxed at 43.41% [1].

The breakdown of taxes on $110,000 in Ontario is:

  • Federal tax: $17,366
  • Provincial tax: $9,518
  • Canada Pension Plan (CPP): $3,500
  • Employment Insurance (EI) premiums: $953
  • Total tax: $31,337

Therefore, the after tax take home pay on $110,000 in Ontario is $78,663 annually, or $6,555 per month. The average tax rate comes out to 28.5% of total income.

Take Home Pay

After deducting $31,337 in total taxes, the take home pay on $110,000 in Ontario works out to $78,663 annually. This equals $6,555 per month or $1,514 per week.

This after tax income would provide a comfortable standard of living for an individual or couple without children. However, supporting additional dependents could make it more challenging depending on spending habits and debt levels.

Deductions

The major deductions that reduce taxable income for an employee earning $110,000 in Ontario include:

  • Registered Retirement Savings Plan (RRSP) contributions
  • Canada Pension Plan (CPP) contributions
  • Employment Insurance (EI) premiums
  • Union dues
  • Childcare expenses
  • Moving expenses
  • Spousal support payments

RRSP contributions can lower taxable income substantially. For 2023, up to 18% of the previous years earned income can be contributed, up to an annual maximum of $29,210. This would reduce taxable income on $110,000 by $19,800.

Other common deductions like medical expenses, property taxes, child fitness credits, and tuition credits can also be claimed. These credits directly reduce taxes payable instead of taxable income.

Comparison to Other Provinces

Compared to other provinces, Ontario has higher personal income tax rates, especially at higher income levels above $100,000. For example, Alberta only has a 15% provincial tax rate on all income levels and no high income surtaxes.

This means take home pay on $110,000 in Alberta would be approximately $6,295 per month after tax, compared to $6,555 per month in Ontario. Overall taxes are lower in Alberta by about $3,000 annually on the same gross income.

Most other provinces have more progressive tax systems than Alberta with higher rates on upper income brackets. But Ontario stands out with a top marginal rate of 53.53% for incomes over $220,000.

Is $110k a Good Salary?

An individual income of $110,000 would be considered an above average salary in Ontario and nationally across Canada. The median household income in Ontario is approximately $76,000 based on 2021 census data.

So an income 42% higher than the provincial median would provide a comfortable standard of living for an individual or couple without children.

However, for larger households with multiple dependents, $110,000 may still feel tight in expensive cities like Toronto or Ottawa. Much depends on housing costs, debt levels, lifestyle expectations and saving/spending habits.

While not enough to be considered wealthy, $110,000 provides over $75,000 in after tax income to live on. This would afford a decent quality of life in most Ontario cities.

Written By:
Salman Rundhawa
Salman Rundhawa is the founder of Filing Taxes. Salman provides valuable tax planning, accounting, and income tax preparation services in Toronto, Mississauga, Oakville, and Hamilton.

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