Toronto financial coach Jim Chuong showed Ontarians earning $1 million per year can expect to spend close to half of it on taxes. .“Welcome to Ontario, Canada,” said Chuong in a tweet. .Chuong said if people’s gross income was $1 million, the federal tax will be $307,320 on that money, while the provincial tax would be $190,919. He added the Canada Pension Plan premiums total $3,500, and the Employment Insurance premiums would be $953. .The net pay turns out to be $497,308. .Optimind Chief Operating Officer Mike Hart said there's property tax and a 13% harmonized sales tax people spend with their net pay. .“So it's even lower,” said Hart. .Alpha40 Capital Principal Partner Ash Buckle agreed with Hart. .“And this isn’t the worst province,” said Buckle. .“No wonder Stamkos stayed in FLA.”.This revelation comes after the Canadian government confirmed in September CPP and EI premiums would increase on January 1, taking a small dent out of people’s paycheques. .To pay for increased benefits, CPP contributions will rise from 5.7% of earnings this year to 5.95%. For a person with the maximum amount of pensionable earnings, the contribution would rise by about $300 next year..The EI hike will bring the figure to $1.63, higher than the $1.58 it is now, but lower than any point during the Conservatives’ last tenure in office..Employers pay into the system at a rate of 1.4 times the rate employees do, which means they will pay $2.28 per $100 next year.
