Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$40,040
Federal tax deduction
- $5,406
Provincial tax deduction
- $3,732
CPP deduction
- $2,083
EI deduction
- $633
Total tax
- $11,854
Net pay
* $28,187
Marginal tax rate
30.5%
Average tax rate
29.6%
70.4%
Net pay
29.6%
Total tax
Total tax
Net pay
The Taxberg
$28,187
Net pay
$2,968
Tax the employer pays
$11,854
Tax you pay
Total tax paid
$14,822
Did you know your employer also pays tax on your salary? It costs the employer $2,968 to pay you $40,040. In other words, every time you spend $10 of your hard-earned money, $3.70 goes to the government.
Real tax rate
34.5%
So, with you and the employer both paying tax, what used to be a 29.6% tax rate now rises to 34.5%, meaning your real tax rate is actually 4.9% higher than what it seemed at first.
Summary
If you make $40,040 a year living in the region of Alberta, Canada, you will be taxed $11,854. That means that your net pay will be $28,187 per year, or $2,349 per month. Your average tax rate is 29.6% 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.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Nunavut
CAD 30,426
24.0%
1
British Columbia
CAD 30,030
25.0%
2
Northwest Territories
CAD 29,717
25.8%
3
Yukon
CAD 29,613
26.0%
4
Ontario
CAD 29,584
26.1%
5
Quebec
CAD 29,228
27.0%
6
Newfoundland and Labrador
CAD 28,620
28.5%
7
New Brunswick
CAD 28,410
29.0%
8
Alberta
CAD 28,187
29.6%
9
Nova Scotia
CAD 27,995
30.1%
10
Saskatchewan
CAD 28,000
30.1%
11
Prince Edward Island
CAD 27,939
30.2%
12
Manitoba
CAD 27,778
30.6%
13
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Europe
Country 
Net pay
Average tax
Rank
Switzerland
CAD 35,669
10.9%
1
Russia
CAD 34,835
13.0%
2
Ireland
CAD 34,730
13.3%
3
United Kingdom
CAD 34,212
14.6%
4
France
CAD 33,757
15.7%
5
Hungary
CAD 32,633
18.5%
6
Norway
CAD 32,287
19.4%
7
Ukraine
CAD 32,232
19.5%
8
Luxembourg
CAD 32,017
20.0%
9
Czech Republic
CAD 31,433
21.5%
10
Spain
CAD 31,424
21.5%
11
Austria
CAD 31,342
21.7%
12
Sweden
CAD 28,630
28.5%
13
Greece
CAD 28,467
28.9%
14
Germany
CAD 28,161
29.7%
15
Italy
CAD 28,021
30.0%
16
Poland
CAD 27,304
31.8%
17
Denmark
CAD 26,882
32.9%
18
Finland
CAD 26,222
34.5%
19
Portugal
CAD 25,295
36.8%
20
Netherlands
CAD 25,197
37.1%
21
Romania
CAD 23,423
41.5%
22
Belgium
CAD 22,805
43.0%
23
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North America
Country 
Net pay
Average tax
Rank
USA
CAD 32,940
17.7%
1
Canada
CAD 29,584
26.1%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Hong Kong
CAD 37,536
6.3%
1
Taiwan
CAD 35,756
10.7%
2
Thailand
CAD 35,107
12.3%
3
Australia
CAD 34,790
13.1%
4
South Korea
CAD 33,344
16.7%
5
New Zealand
CAD 33,156
17.2%
6
Kazakhstan
CAD 32,068
19.9%
7
Indonesia
CAD 31,860
20.4%
8
Pakistan
CAD 31,754
20.7%
9
Singapore
CAD 31,524
21.3%
10
Japan
CAD 31,239
22.0%
11
Malaysia
CAD 31,086
22.4%
12
Philippines
CAD 30,044
25.0%
13
Vietnam
CAD 28,951
27.7%
14
China
CAD 27,117
32.3%
15
India
CAD 25,969
35.1%
16
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Latin America
Country 
Net pay
Average tax
Rank
Guatemala
CAD 36,201
9.6%
1
Puerto Rico
CAD 35,250
12.0%
2
Costa Rica
CAD 35,071
12.4%
3
Ecuador
CAD 34,023
15.0%
4
Colombia
CAD 32,699
18.3%
5
Panama
CAD 32,591
18.6%
6
Chile
CAD 32,102
19.8%
7
Mexico
CAD 30,861
22.9%
8
Peru
CAD 30,594
23.6%
9
Brazil
CAD 29,811
25.6%
10
Uruguay
CAD 28,918
27.8%
11
Argentina
CAD 26,016
35.0%
12
Show more
Africa
Country 
Net pay
Average tax
Rank
South Africa
CAD 31,376
21.6%
1
Angola
CAD 29,370
26.7%
2
Mozambique
CAD 29,107
27.3%
3
Kenya
CAD 28,734
28.2%
4
Ghana
CAD 27,876
30.4%
5
Ivory Coast
CAD 27,764
30.7%
6
Morocco
CAD 27,411
31.5%
7
Nigeria
CAD 27,408
31.6%
8
Uganda
CAD 26,436
34.0%
9
Cameroon
CAD 26,095
34.8%
10
Senegal
CAD 25,617
36.0%
11
Zambia
CAD 25,031
37.5%
12
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Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CAD 38,038
5.0%
1
Qatar
CAD 38,038
5.0%
2
Bahrain
CAD 36,837
8.0%
3
Oman
CAD 36,837
8.0%
4
Saudi Arabia
CAD 36,036
10.0%
5
Kuwait
CAD 35,636
11.0%
6
Israel
CAD 33,522
16.3%
7
Egypt
CAD 30,415
24.0%
8
Lebanon
CAD 30,294
24.3%
9
Turkey
CAD 23,587
41.1%
10
Show more
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.