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View resultsEstimate for me · Ontario take-home
One person’s annual salary and non-eligible dividends. Your household take-home can be entered above.
Controlling shareholders may be exempt. See the source notes below.
- Federal income tax /year
- $17,502
- Ontario tax incl. health premium /year
- $9,386
- CPP including CPP2 /year
- $4,646
- EI /year
- $1,123
2026 tax, CPP & EI sources and limits
One Ontario resident, with standard personal credits and employee CPP for a full year. Enter actual T4 employment income (box 14) and cash non-eligible Canadian dividends (T5 box 10), before dividend gross-up. Eligible dividends, T5 interest and foreign income are not modelled; enter your actual monthly take-home for those income sources.
Federal brackets
- 14.0%: $0 to $58,523
- 20.5%: $58,523 to $117,045
- 26.0%: $117,045 to $181,440
- 29.0%: $181,440 to $258,482
- 33.0%: $258,482 to and above
Ontario brackets
- 5.05%: $0 to $53,891
- 9.15%: $53,891 to $107,785
- 11.16%: $107,785 to $150,000
- 12.16%: $150,000 to $220,000
- 13.16%: $220,000 to and above
Federal basic personal amount: $16,452, reducing to $14,829 above $181,440–$258,482. Ontario: $12,989. Employment amount: up to $1,501. Base CPP/EI credits and additional CPP deductions are included.
Employee CPP: 5.95% on earnings over $3,500 up to $74,600 (maximum $4,230.45), plus CPP2 at 4% from $74,600 to $85,000 (maximum $416). EI: 1.63% up to $68,900 (maximum $1,123.07). Dividends have no CPP/EI.
Ontario surtax: 20% of basic tax above $5,818 plus 36% above $7,446. Standard Ontario tax reduction is included. The health premium ranges from $0 to $900, based on taxable income.
Non-eligible dividends only: 15% gross-up, federal credit 9.0301%, Ontario credit 2.9863%. Credits use the taxable dividend amount; Ontario dividend credits follow surtax.
RRSP deductions, dependants, other credits, benefits, alternative minimum tax, pension/CPP elections, corporate tax and other payroll deductions are excluded. CPP assumes standard full-year employee contributions. For two earners or a different CPP situation, enter actual household take-home directly. Salary may be EI-exempt for controlling shareholders; adjust the EI option to match your employment.
- CRA · 2026 payroll formulas, credits, CPP and EI
- CRA · July 2026 update (Ontario unchanged)
- CRA · T5 dividend gross-up and federal credits
- Ontario · dividend credits · health premium
- Employment Insurance Act · section 5(2)(b), controlling shareholders
Sources checked September 30, 2026. This is a tax estimate, not tax advice.
Adjust assumptions
Choosing 30 years caps the purchase price so your down payment covers at least 20%. This may lower your ceiling.
Two numbers. Different questions.
What the 35% rule suggests
$470K
$2,520 /mo housing
Payment + tax + condo fees vs. take-home pay
What a lender may approve
$580K
$3,211 /mo housing
Stress-tested at 6.00%, 39%/44% on gross income
Monthly housing includes mortgage payment, property tax and full condo fees. Set aside extra for heating, utilities, insurance, maintenance and closing costs.
A lender may approve about $110K more than the 35% rule suggests. At their number, roughly 45% of your take-home goes to housing, before repairs, savings or anything else.
Incorporated? The income a lender uses may be higher or lower than what you pay yourself. That’s what we work out together. Read about qualifying income
Estimates for illustration only, based on the assumptions shown. Not a mortgage approval, pre-approval, or offer. Actual qualification depends on the lender, the mortgage program, your documents and credit. Gaurav Sophat · Mortgage Agent Level 2 · DLC FC Funding #10671.
What is this based on?
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Prices round down to the nearest $5,000; monthly figures round to $1 and use the unrounded prices below. “Monthly housing” here means mortgage payment, property tax and full condo fees. It excludes heating, other utilities, insurance, maintenance and closing costs.
- Contract / qualifying rate
- 4.00% / 6.00%
- Rate assumption date
- September 30, 2026 · illustrative default 4%
- Stress test
- Greater of contract + 2% or 5.25%
- Gross-income limits
- 39% GDS / 44% TDS
- Take-home housing limit
- 35%; excludes debts and heating; capped at lender qualification
- Heating for qualification
- $100 /mo
- Property tax
- 1.00% of price /year
- Condo fees
- 50% for qualification; 100% for affordability
- Compounding / amortization
- Semi-annual fixed-rate convention / 25 years
Minimum down payment: 5% up to $500,000, plus 10% on the portion above $500,000 below $1.5M; 20% at $1.5M or above. Insured premiums: 2.80% at up to 85% LTV, 3.10% at up to 90%, 4% at up to 95%; +0.20% for 30 years. No premium at 20% down. Premiums are added to the loan; Ontario’s 8% PST on the premium is payable separately at closing.
| Monthly costs & financing | 35% rule | Lender |
|---|---|---|
| Purchase price (unrounded) | $473,110 | $582,485 |
| Down payment applied | $80,000 | $80,000 |
| Insurance premium | $11,007 (2.80%) | $15,577 (3.10%) |
| Loan including premium | $404,117 | $518,062 |
| Contract payment /mo | $2,126 | $2,725 |
| Stress-tested payment /mo | $2,586 | $3,315 |
| Property tax /mo | $394 | $485 |
| Heating /mo (qualification only) | $100 | $100 |
| Condo fees /mo (full) | $0 | $0 |
| Housing total /mo (excludes heat) | $2,520 | $3,211 |
| GDS | 30.80% | 39.00% |
| TDS | 35.80% | 44.00% |
| Housing / take-home | 35.00% | 44.59% |
| Ontario PST on premium (cash at closing) | $881 | $1,246 |
Qualification limited by: GDS. Affordable price limited by: 35% of take-home.