Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$20,400
Federal tax deduction
- $2,674
Provincial tax deduction
- $2,064
CPP deduction
- $963
EI deduction
- $322
Total tax
- $6,024
Net pay
* $14,376
Marginal tax rate
31.2%
Average tax rate
29.5%
70.5%
Net pay
29.5%
Total tax
Total tax
Net pay
The Taxberg
$14,376
Net pay
$1,415
Tax the employer pays
$6,024
Tax you pay
Total tax paid
$7,439
Did you know your employer also pays tax on your salary? It costs the employer $1,415 to pay you $20,400. In other words, every time you spend $10 of your hard-earned money, $3.65 goes to the government.
Real tax rate
34.1%
So, with you and the employer both paying tax, what used to be a 29.5% tax rate now rises to 34.1%, meaning your real tax rate is actually 4.6% higher than what it seemed at first.
Summary
If you make $20,400 a year living in the region of Manitoba, Canada, you will be taxed $6,024. That means that your net pay will be $14,376 per year, or $1,198 per month. Your average tax rate is 29.5% and your marginal tax rate is 31.2%. 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 $31.20, hence, your net pay will only increase by $68.80.
Bonus Example
A $1,000 bonus will generate an extra $688 of net incomes. A $5,000 bonus will generate an extra $3,440 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
CAD 18,057
11.5%
1
Canada
CAD 15,451
24.3%
2
NOTE* Withholding is calculated based on the Manitoba 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.