Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$12,850
Federal tax deduction
- $1,624
Provincial tax deduction
- $612
CPP deduction
- $533
EI deduction
- $203
Total tax
- $2,972
Net pay
* $9,878
Marginal tax rate
25.9%
Average tax rate
23.1%
76.9%
Net pay
23.1%
Total tax
Total tax
Net pay
The Taxberg
$9,878
Net pay
$817
Tax the employer pays
$2,972
Tax you pay
Total tax paid
$3,789
Did you know your employer also pays tax on your salary? It costs the employer $817 to pay you $12,850. In other words, every time you spend $10 of your hard-earned money, $2.95 goes to the government.
Real tax rate
27.7%
So, with you and the employer both paying tax, what used to be a 23.1% tax rate now rises to 27.7%, meaning your real tax rate is actually 4.6% higher than what it seemed at first.
Summary
If you make $12,850 a year living in the region of Ontario, Canada, you will be taxed $2,972. That means that your net pay will be $9,878 per year, or $823 per month. Your average tax rate is 23.1% and your marginal tax rate is 25.9%. 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 $25.87, hence, your net pay will only increase by $74.13.
Bonus Example
A $1,000 bonus will generate an extra $741 of net incomes. A $5,000 bonus will generate an extra $3,707 of net incomes.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Quebec
CAD 10,708
16.7%
1
British Columbia
CAD 10,368
19.3%
2
Nunavut
CAD 10,005
22.1%
3
Ontario
CAD 9,878
23.1%
4
Yukon
CAD 9,797
23.8%
5
Northwest Territories
CAD 9,775
23.9%
6
Newfoundland and Labrador
CAD 9,436
26.6%
7
Nova Scotia
CAD 9,425
26.7%
8
New Brunswick
CAD 9,351
27.2%
9
Prince Edward Island
CAD 9,303
27.6%
10
Alberta
CAD 9,279
27.8%
11
Saskatchewan
CAD 9,218
28.3%
12
Manitoba
CAD 9,182
28.5%
13
Show more
Europe
Country 
Net pay
Average tax
Rank
United Kingdom
CAD 12,850
0.0%
1
Ireland
CAD 12,850
0.0%
2
Italy
CAD 12,192
5.1%
3
Spain
CAD 12,034
6.4%
4
Switzerland
CAD 11,938
7.1%
5
Norway
CAD 11,822
8.0%
6
France
CAD 11,604
9.7%
7
Luxembourg
CAD 11,394
11.3%
8
Czech Republic
CAD 11,312
12.0%
9
Russia
CAD 11,180
13.0%
10
Austria
CAD 10,925
15.0%
11
Hungary
CAD 10,473
18.5%
12
Ukraine
CAD 10,344
19.5%
13
Germany
CAD 10,322
19.7%
14
Sweden
CAD 10,086
21.5%
15
Greece
CAD 10,042
21.9%
16
Poland
CAD 9,941
22.6%
17
Portugal
CAD 9,378
27.0%
18
Finland
CAD 8,899
30.8%
19
Belgium
CAD 8,738
32.0%
20
Denmark
CAD 8,561
33.4%
21
Netherlands
CAD 8,086
37.1%
22
Romania
CAD 7,517
41.5%
23
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North America
Country 
Net pay
Average tax
Rank
USA
CAD 11,657
9.3%
1
Canada
CAD 9,878
23.1%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Australia
CAD 12,850
0.0%
1
Hong Kong
CAD 12,850
0.0%
2
Thailand
CAD 12,140
5.5%
3
Pakistan
CAD 11,846
7.8%
4
Taiwan
CAD 11,713
8.9%
5
Malaysia
CAD 11,341
11.7%
6
South Korea
CAD 11,320
11.9%
7
New Zealand
CAD 11,236
12.6%
8
Indonesia
CAD 11,116
13.5%
9
Philippines
CAD 11,041
14.1%
10
Japan
CAD 10,442
18.7%
11
Singapore
CAD 10,283
20.0%
12
Vietnam
CAD 10,271
20.1%
13
Kazakhstan
CAD 10,177
20.8%
14
India
CAD 10,141
21.1%
15
China
CAD 9,171
28.6%
16
Show more
Latin America
Country 
Net pay
Average tax
Rank
Puerto Rico
CAD 11,829
7.9%
1
Colombia
CAD 11,822
8.0%
2
Ecuador
CAD 11,636
9.5%
3
Guatemala
CAD 11,618
9.6%
4
Costa Rica
CAD 11,501
10.5%
5
Panama
CAD 11,436
11.0%
6
Peru
CAD 11,244
12.5%
7
Mexico
CAD 10,958
14.7%
8
Brazil
CAD 10,786
16.1%
9
Chile
CAD 10,588
17.6%
10
Uruguay
CAD 10,267
20.1%
11
Argentina
CAD 8,343
35.1%
12
Show more
Africa
Country 
Net pay
Average tax
Rank
South Africa
CAD 11,678
9.1%
1
Morocco
CAD 10,407
19.0%
2
Mozambique
CAD 10,020
22.0%
3
Ivory Coast
CAD 9,839
23.4%
4
Cameroon
CAD 9,735
24.2%
5
Kenya
CAD 9,707
24.5%
6
Angola
CAD 9,576
25.5%
7
Ghana
CAD 9,474
26.3%
8
Nigeria
CAD 8,914
30.6%
9
Uganda
CAD 8,762
31.8%
10
Senegal
CAD 8,720
32.1%
11
Zambia
CAD 8,419
34.5%
12
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Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CAD 12,208
5.0%
1
Qatar
CAD 12,207
5.0%
2
Bahrain
CAD 11,822
8.0%
3
Oman
CAD 11,822
8.0%
4
Saudi Arabia
CAD 11,565
10.0%
5
Kuwait
CAD 11,437
11.0%
6
Israel
CAD 11,160
13.2%
7
Egypt
CAD 10,022
22.0%
8
Lebanon
CAD 9,901
23.0%
9
Turkey
CAD 7,532
41.4%
10
Show more
NOTE* Withholding is calculated based on the Ontario 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.