Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$18,960
Federal tax deduction
- $2,474
Provincial tax deduction
- $1,778
CPP deduction
- $881
EI deduction
- $300
Total tax
- $5,433
Net pay
* $13,527
Marginal tax rate
30.5%
Average tax rate
28.7%
71.3%
Net pay
28.7%
Total tax
Total tax
Net pay
The Taxberg
$13,527
Net pay
$1,301
Tax the employer pays
$5,433
Tax you pay
Total tax paid
$6,733
Did you know your employer also pays tax on your salary? It costs the employer $1,301 to pay you $18,960. In other words, every time you spend $10 of your hard-earned money, $3.55 goes to the government.
Real tax rate
33.2%
So, with you and the employer both paying tax, what used to be a 28.7% tax rate now rises to 33.2%, meaning your real tax rate is actually 4.5% higher than what it seemed at first.
Summary
If you make $18,960 a year living in the region of Alberta, Canada, you will be taxed $5,433. That means that your net pay will be $13,527 per year, or $1,127 per month. Your average tax rate is 28.7% and your marginal tax rate is 30.5%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of $100 in your salary will be taxed $30.46, hence, your net pay will only increase by $69.54.
Bonus Example
A $1,000 bonus will generate an extra $695 of net incomes. A $5,000 bonus will generate an extra $3,477 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
CAD 16,936
10.7%
1
Canada
CAD 14,408
24.0%
2
NOTE* Withholding is calculated based on the Alberta tables of Canada, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.