Tax Rates
An individual earning $95,000 annually in Ontario would fall into the following federal and provincial tax brackets for 2023:
Federal Tax Brackets
- 15% on the first $53,359
- 20.5% on the next $53,360 to $106,717
- 26% on the next $43,483 to $150,000
- 29% on the remaining $45,000
Ontario Tax Brackets
- 5.05% on the first $49,231
- 9.15% on the next $49,232 to $98,462
- 11.16% on the next $51,537 to $150,000
- 12.16% on the next $70,000 to $220,000
- 13.16% on the remaining $25,000
Based on these tax brackets, a $95,000 annual salary in Ontario would face the following marginal and average tax rates:
- Marginal Tax Rate: 37.9%
- Average Tax Rate: 29.6%
This means on your last dollar earned, you would pay 37.9% in income taxes. But your total effective tax rate on your entire $95,000 salary works out to 29.6% when all taxes are calculated.
Take-Home Pay
After federal and provincial taxes are deducted, your annual take-home pay on a $95,000 salary in Ontario is $66,910.
This works out to $5,576 in take-home pay per month.
Here is the breakdown:
- Annual Gross Pay: $95,000
- Total Taxes: $28,090
- Federal Tax: $13,762
- Provincial Tax: $7,024
- CPP: $3,500
- EI: $953
- Annual Take-Home Pay: $66,910
So you get to keep about 70.4% of your gross $95,000 salary after taxes.
Deductions
The main deductions that reduce your take-home pay on a $95,000 annual salary in Ontario are:
Income Taxes
- You pay $13,762 in federal income taxes
- You pay $7,024 in provincial income taxes
CPP Contributions
- You contribute $3,500 annually to the Canada Pension Plan
EI Premiums
- You contribute $953 annually for Employment Insurance
In total, these deductions of $28,090 on a $95,000 salary result in an average tax rate of 29.6%.
Comparison to Other Provinces
Compared to other provinces, Ontario has higher overall taxes on a $95,000 salary:
- Alberta: $25,197 in total taxes (21.5% average tax rate)
- British Columbia: $23,624 in total taxes (19.9% average tax rate)
- Saskatchewan: $23,307 in total taxes (19.5% average tax rate)
So you would take home between $1,500 to $3,000 more per year if you earned the same $95,000 salary in Alberta, BC or Saskatchewan compared to Ontario.
Is $95,000 a Good Salary?
Overall, a $95,000 salary is considered an excellent salary in Ontario, well above what the average worker earns.
Some key points:
- The average individual income in Ontario is around $52,000 per year, so a $95,000 salary is 82% higher.
- A $95,000 income puts you in the top 10-15% income bracket in the province.
- This salary affords you a comfortable, upper-middle class lifestyle in Ontario. You can afford a nice home, support a family, save substantially and enjoy reasonable luxuries.
- While not “rich” by Ontario standards, $95,000 certainly provides a good standard of living well above the middle class.
So in summary, a $95,000 annual salary lets you live very comfortably in Ontario, though higher incomes are always nice too!
Conclusion
A $95,000 annual salary in Ontario results in around $66,910 in after-tax take-home pay, based on a 29.6% average tax rate. This salary affords an upper-middle class lifestyle with financial security.
While you lose nearly 30% of your income to taxes, $95,000 remains an objectively excellent salary that places you in the top income tier in Ontario. Very few individuals actually manage to earn this level of income during their working careers.