Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$12,500
Federal tax deduction
- $1,575
Provincial tax deduction
- $472
CPP deduction
- $513
EI deduction
- $198
Total tax
- $2,757
Net pay
* $9,743
Marginal tax rate
24.9%
Average tax rate
22.1%
77.9%
Net pay
22.1%
Total tax
Total tax
Net pay
The Taxberg
$9,743
Net pay
$790
Tax the employer pays
$2,757
Tax you pay
Total tax paid
$3,547
Did you know your employer also pays tax on your salary? It costs the employer $790 to pay you $12,500. In other words, every time you spend $10 of your hard-earned money, $2.84 goes to the government.
Real tax rate
26.7%
So, with you and the employer both paying tax, what used to be a 22.1% tax rate now rises to 26.7%, meaning your real tax rate is actually 4.6% higher than what it seemed at first.
Summary
If you make $12,500 a year living in the region of Nunavut, Canada, you will be taxed $2,757. That means that your net pay will be $9,743 per year, or $812 per month. Your average tax rate is 22.1% and your marginal tax rate is 24.9%. 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 $24.89, hence, your net pay will only increase by $75.11.
Bonus Example
A $1,000 bonus will generate an extra $751 of net incomes. A $5,000 bonus will generate an extra $3,756 of net incomes.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Quebec
CAD 10,426
16.6%
1
British Columbia
CAD 10,109
19.1%
2
Nunavut
CAD 9,743
22.1%
3
Ontario
CAD 9,619
23.0%
4
Yukon
CAD 9,542
23.7%
5
Northwest Territories
CAD 9,519
23.9%
6
Newfoundland and Labrador
CAD 9,188
26.5%
7
Nova Scotia
CAD 9,178
26.6%
8
New Brunswick
CAD 9,106
27.2%
9
Prince Edward Island
CAD 9,059
27.5%
10
Alberta
CAD 9,035
27.7%
11
Saskatchewan
CAD 8,976
28.2%
12
Manitoba
CAD 8,941
28.5%
13
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Europe
Country 
Net pay
Average tax
Rank
United Kingdom
CAD 12,500
0.0%
1
Ireland
CAD 12,500
0.0%
2
Spain
CAD 11,706
6.4%
3
Italy
CAD 11,688
6.5%
4
Switzerland
CAD 11,612
7.1%
5
Norway
CAD 11,500
8.0%
6
France
CAD 11,288
9.7%
7
Luxembourg
CAD 11,088
11.3%
8
Czech Republic
CAD 11,044
11.7%
9
Russia
CAD 10,875
13.0%
10
Austria
CAD 10,628
15.0%
11
Hungary
CAD 10,188
18.5%
12
Ukraine
CAD 10,063
19.5%
13
Germany
CAD 10,041
19.7%
14
Sweden
CAD 9,823
21.4%
15
Greece
CAD 9,769
21.9%
16
Poland
CAD 9,718
22.3%
17
Portugal
CAD 9,147
26.8%
18
Finland
CAD 8,656
30.8%
19
Belgium
CAD 8,500
32.0%
20
Denmark
CAD 8,325
33.4%
21
Netherlands
CAD 7,865
37.1%
22
Romania
CAD 7,312
41.5%
23
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North America
Country 
Net pay
Average tax
Rank
USA
CAD 11,350
9.2%
1
Canada
CAD 9,619
23.1%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Australia
CAD 12,500
0.0%
1
Hong Kong
CAD 12,500
0.0%
2
Thailand
CAD 11,821
5.4%
3
Pakistan
CAD 11,565
7.5%
4
Taiwan
CAD 11,394
8.9%
5
Malaysia
CAD 11,032
11.7%
6
South Korea
CAD 11,015
11.9%
7
New Zealand
CAD 10,952
12.4%
8
Indonesia
CAD 10,827
13.4%
9
Philippines
CAD 10,778
13.8%
10
Japan
CAD 10,157
18.7%
11
Vietnam
CAD 10,005
20.0%
12
Singapore
CAD 10,000
20.0%
13
India
CAD 9,905
20.8%
14
Kazakhstan
CAD 9,900
20.8%
15
China
CAD 8,927
28.6%
16
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Latin America
Country 
Net pay
Average tax
Rank
Puerto Rico
CAD 11,506
8.0%
1
Colombia
CAD 11,500
8.0%
2
Ecuador
CAD 11,319
9.5%
3
Guatemala
CAD 11,301
9.6%
4
Costa Rica
CAD 11,187
10.5%
5
Panama
CAD 11,125
11.0%
6
Peru
CAD 10,938
12.5%
7
Mexico
CAD 10,692
14.5%
8
Brazil
CAD 10,549
15.6%
9
Chile
CAD 10,300
17.6%
10
Uruguay
CAD 9,987
20.1%
11
Argentina
CAD 8,115
35.1%
12
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Africa
Country 
Net pay
Average tax
Rank
South Africa
CAD 11,394
8.8%
1
Morocco
CAD 10,180
18.6%
2
Mozambique
CAD 9,768
21.9%
3
Ivory Coast
CAD 9,598
23.2%
4
Cameroon
CAD 9,531
23.8%
5
Kenya
CAD 9,465
24.3%
6
Angola
CAD 9,319
25.5%
7
Ghana
CAD 9,225
26.2%
8
Nigeria
CAD 8,676
30.6%
9
Uganda
CAD 8,535
31.7%
10
Senegal
CAD 8,492
32.1%
11
Zambia
CAD 8,221
34.2%
12
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Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CAD 11,875
5.0%
1
Qatar
CAD 11,875
5.0%
2
Bahrain
CAD 11,500
8.0%
3
Oman
CAD 11,500
8.0%
4
Saudi Arabia
CAD 11,250
10.0%
5
Kuwait
CAD 11,125
11.0%
6
Israel
CAD 10,856
13.2%
7
Egypt
CAD 9,760
21.9%
8
Lebanon
CAD 9,639
22.9%
9
Turkey
CAD 7,356
41.2%
10
Show more
NOTE* Withholding is calculated based on the Nunavut 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.