Average Salary in Ontario 2025: By Industry, City, and What You Keep After Tax
TaxCalc Canada Editorial
Published May 8, 2025 · Data sourced from Statistics Canada Table 14-10-0340-01
A colleague in Sudbury told me she felt underpaid at $62,000 a year. A colleague in Toronto felt the same at $85,000. The average salary number answers a different question depending on where you live, what you do, and whether you're looking at gross or net. This guide covers all three.
“Average salary” is one of the most quoted and least useful statistics in Canada. It's pulled upward by the few who earn exceptionally well, which means the average person earns below the average salary. Understanding the difference between mean and median — and what those figures look like after the CRA takes its share — gives you a much more honest benchmark.
Quick Answer
The average salary in Ontario in 2025 is approximately $68,900 (mean employment income, Statistics Canada LFS data). The median is closer to $54,400 — a more representative number for most workers. After federal and Ontario provincial taxes, CPP, and EI, the average earner takes home roughly $48,600–$50,200/year.
Average vs Median: Which Number Matters?
The mean (average) adds up all employment incomes and divides by the number of earners. The median finds the middle person — half earn more, half earn less. In an unequal distribution like income, these two numbers diverge significantly.
In Ontario, a software engineer in Toronto earning $180,000 and a retail worker in Windsor earning $32,000 both contribute to the same average. The mean says $106,000. The median says “most people earn between $45,000 and $65,000.” One of those answers is more useful than the other.
| Metric | Ontario | Canada |
|---|---|---|
| Mean employment income | $68,900 | $62,100 |
| Median employment income | $54,400 | $49,800 |
| Minimum wage (annualized) | $35,776 | $35,984 (fed.) |
| Top 10% threshold | $145,000+ | $125,000+ |
Source: Statistics Canada, Survey of Employment, Payrolls and Hours (2024)
When comparing your salary to the “average,” use the median as your benchmark, not the mean. If you earn above $54,400 in Ontario, you earn more than half of all Ontario earners.
Average Salary by Industry in Ontario
Ontario's salary landscape is bifurcated. A handful of high-paying industries — tech, finance, professional services — coexist with large low-wage sectors in retail and hospitality. The industry you work in has a larger impact on your earnings than almost any other single factor.
| Industry | Avg. Annual Salary |
|---|---|
| Information & Communications Technology | $95,000 |
| Finance & Insurance | $88,000 |
| Professional & Scientific Services | $82,000 |
| Public Administration | $79,000 |
| Healthcare | $72,000 |
| Education | $68,000 |
| Construction | $66,000 |
| Manufacturing | $58,000 |
| Retail Trade | $42,000 |
| Accommodation & Food Services | $33,000 |
The gap between the best-paid and worst-paid industries is nearly 3:1. A senior software developer and a full-time server both live in Ontario but effectively occupy different economic realities — the tax system treats them accordingly, which is why the Ontario tax brackets matter more for higher earners.
Average Salary by Ontario City
Location matters, but perhaps less than you'd expect. Toronto pays more, but it also costs more. A $74,000 salary in Toronto and a $58,000 salary in Hamilton may represent roughly equivalent purchasing power once housing costs are factored in.
| City | Avg. Annual Salary |
|---|---|
| Toronto | $74,200 |
| Ottawa | $71,800 |
| Mississauga | $68,400 |
| Hamilton | $58,600 |
| London | $55,900 |
| Kitchener-Waterloo | $65,200 |
| Windsor | $52,800 |
| Kingston | $57,300 |
| Thunder Bay | $59,100 |
| Sudbury | $60,400 |
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What You Actually Take Home
Gross salary is what you negotiate. Net salary is what you live on. In Ontario, the gap between the two grows as income rises — federal and provincial rates both increase at higher income levels. The basic personal amount ($16,129 federal, $11,865 provincial in 2025) provides some relief at lower incomes but phases out at higher ones.
| Gross Salary | Net (Ontario, 2025) | Effective Rate |
|---|---|---|
| $50,000 | ~$39,800 | 20.4% |
| $60,000 | ~$47,100 | 21.5% |
| $70,000 | ~$53,900 | 23% |
| $80,000 | ~$60,200 | 24.8% |
| $100,000 | ~$72,600 | 27.4% |
Approximate figures for a single person with no additional credits. Use the salary calculator for an exact breakdown.
The effective rate tells you what fraction of your gross goes to taxes and deductions combined. On the median Ontario salary of $54,400, about 21.5% goes to deductions — not the 33% marginal rate people often cite when they hear about Ontario taxes. For more on this distinction, read the marginal vs effective tax rate guide.
Ontario vs Other Provinces
Ontario pays more than most provinces but less than Alberta. The gap closes somewhat after tax — Ontario's provincial rates are higher than Alberta's, though the difference is smaller than the no-PST headlines suggest.
| Province | Mean Employment Income |
|---|---|
| Alberta | $79,000 |
| Ontario | $68,900 |
| British Columbia | $67,000 |
| Saskatchewan | $64,200 |
| Manitoba | $58,400 |
| Quebec | $59,100 |
| Nova Scotia | $53,800 |
| New Brunswick | $52,100 |
| Prince Edward Island | $49,600 |
| Newfoundland & Labrador | $55,200 |
Want to see exactly how Ontario compares to Quebec after tax? The Ontario vs Quebec tax comparison runs the numbers side by side for salaries from $50K to $200K.
Frequently Asked Questions
What is the average salary in Ontario in 2025?
The average (mean) employment income in Ontario is approximately $68,900 per year based on Statistics Canada Labour Force Survey data. The median — the number that splits earners in half — is closer to $54,400, which is a more representative figure for most workers since the mean is pulled up by very high earners.
What is considered a good salary in Ontario?
A salary above $70,000/year puts you in the top 40% of Ontario earners. In Toronto, $80,000–$90,000 is generally considered comfortable for a single person. For a family of four in the GTA, $120,000 combined is the threshold most financial planners consider "comfortable" after housing costs.
What is the average salary in Toronto?
Toronto's average employment income is approximately $74,200/year — about 7.5% above the Ontario average. This reflects the concentration of finance, tech, and professional services jobs in the city. The median is lower, around $60,000, because high-income earners in finance and tech skew the mean upward.
How much tax do you pay on the average Ontario salary?
On a $68,900 salary in Ontario, you pay approximately $11,200 in federal income tax, $4,100 in Ontario provincial tax, $3,900 in CPP contributions, and $1,077 in EI premiums — totalling roughly $20,300 in deductions. Your effective tax rate (total deductions ÷ gross income) is about 29.5%, leaving take-home pay of approximately $48,600.
Which industries pay the most in Ontario?
Information and Communications Technology leads with an average of $95,000/year, followed by Finance & Insurance ($88,000) and Professional & Scientific Services ($82,000). The lowest-paying sectors are Accommodation & Food Services ($33,000) and Retail Trade ($42,000), where minimum wage and part-time work are common.
Is the average salary in Ontario enough to live on?
The median take-home pay on a $54,400 salary in Ontario is about $43,800/year, or roughly $3,650/month. In most Ontario cities outside Toronto, this covers housing, food, and transportation with some room for savings. In Toronto, where average rents for a one-bedroom exceed $2,200/month, it is tight for a single person.
How does Ontario's average salary compare to other provinces?
Ontario's average salary is the second highest in Canada after Alberta ($79,000). British Columbia averages about $67,000, Quebec $59,000, and the Atlantic provinces range from $48,000–$55,000. However, Ontario's higher provincial income tax partially offsets the salary advantage when compared to Alberta, which has no PST and lower rates.
What is the minimum wage in Ontario in 2025?
Ontario's general minimum wage is $17.20 per hour as of October 2024, which works out to $35,776/year at 2,080 hours. After deductions, a full-time minimum wage worker in Ontario takes home approximately $30,400/year. The student minimum wage is $16.20/hr for students under 18 working fewer than 28 hours/week.
TaxCalc Canada Editorial Team
We research Canadian tax rules so you don't have to read the CRA website at midnight. All rates are verified against official CRA schedules and Statistics Canada data before publishing.