Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$20,352
Federal tax deduction
- $2,667
Provincial tax deduction
- $1,125
CPP deduction
- $961
EI deduction
- $322
Total tax
- $5,075
Net pay
* $15,277
Marginal tax rate
26.7%
Average tax rate
24.9%
75.1%
Net pay
24.9%
Total tax
Total tax
Net pay
The Taxberg
$15,277
Net pay
$1,411
Tax the employer pays
$5,075
Tax you pay
Total tax paid
$6,485
Did you know your employer also pays tax on your salary? It costs the employer $1,411 to pay you $20,352. In other words, every time you spend $10 of your hard-earned money, $3.19 goes to the government.
Real tax rate
29.8%
So, with you and the employer both paying tax, what used to be a 24.9% tax rate now rises to 29.8%, meaning your real tax rate is actually 4.9% higher than what it seemed at first.
Summary
If you make $20,352 a year living in the region of Northwest Territories, Canada, you will be taxed $5,075. That means that your net pay will be $15,277 per year, or $1,273 per month. Your average tax rate is 24.9% and your marginal tax rate is 26.7%. 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 $26.66, hence, your net pay will only increase by $73.34.
Bonus Example
A $1,000 bonus will generate an extra $733 of net incomes. A $5,000 bonus will generate an extra $3,667 of net incomes.
NOTE* Withholding is calculated based on the Northwest Territories 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.