Updated Checked by the Tax-Services.ca editorial team How we check
Gross income is the pay written in the offer letter, and net income is what reaches your bank account after deductions. On $70,000 of gross income in Ontario, net income comes to $53,786 a year, which is $4,482 a month.
Which number belongs where
Contracts and job ads quote gross pay because it is the same for everyone in that job. Your groceries and rent come out of net pay, and that number depends on where you live and which deductions apply. Take-home pay and after-tax income are other names for net.
Walking from $70,000 down to $53,786
Four deductions separate the two figures. CPP and EI come off first, then federal and Ontario income tax.
| Item | Per year | Per month |
|---|---|---|
| Gross pay | $70,000 | $5,833 |
| CPP contribution | $3,957 | $330 |
| EI premium | $1,123 | $94 |
| Federal income tax | $7,278 | $607 |
| Ontario income tax | $3,856 | $321 |
| Total deductions | $16,214 | $1,351 |
| Net pay | $53,786 | $4,482 |
Subtract the $16,214 of deductions from the $70,000 and you land on $53,786. Those deductions take 23.2% of gross, so about 76.8% reaches you.
Why tax is not worked out on the full gross
Income tax starts from taxable income, which is $69,335 here. It sits a little under gross because part of the CPP contribution is deductible. Federal tax of $7,278 and Ontario tax of $3,856 together make $11,134, an average income tax rate of 15.9% of gross.
That average hides what happens at the edge. The next dollar you earn is taxed at 29.65%, so a raise is shared with the government at a higher rate than your average. The full $70,000 Ontario breakdown and the 70k paycheque view go deeper on that.
Gross and net across the pay calendar
Pay frequency changes the size of each cheque. It does not change the yearly totals above.
| Pay period | Gross | Net |
|---|---|---|
| Weekly | $1,346.15 | $1,034.35 |
| Biweekly | $2,692.31 | $2,068.70 |
| Semi-monthly | $2,916.67 | $2,241.09 |
| Monthly | $5,833.33 | $4,482.19 |
Where the two figures show up on paper
Your T4 slip in February lists the pay for the year along with the CPP, EI and income tax withheld. Net is what remains once you subtract those amounts. If you want to test a different salary or province, the take-home pay by province page lines up all thirteen, and the Ontario tax page lists the rates used here.
Where do these figures come from?
These figures are calculated with the same engine as our take-home pay calculator and the 2026 tables from the Canada Revenue Agency and the provinces. Only pay is counted, with no RRSP, credits or benefits unless the text says so. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
What is the difference between gross and net income?
Gross is what you earn before deductions. Net is what remains after tax and other deductions, though the word means something else on a tax return.
What is net income on a tax return?
It is the figure on line 23600, your total income minus certain deductions. It is not your take-home pay.
How much of a $75,000 salary do you keep in Ontario?
The take-home pay calculator shows $56,925.83 a year, or 75.9% of gross, using the basic personal amount and the pension and EI credits.
Why is my taxable income lower than my pay?
Deductions come off first. The added CPP contributions are one example, worth $565 on $60,000 of pay.
Is self-employed net income the same as sales?
No. Net is what remains after business expenses, and tax is charged on that.
All payroll and salary calculators
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill