Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$13,042
Federal tax deduction
- $1,651
Provincial tax deduction
- $621
CPP deduction
- $544
EI deduction
- $206
Total tax
- $3,021
Net pay
* $10,021
Marginal tax rate
25.9%
Average tax rate
23.2%
76.8%
Net pay
23.2%
Total tax
Total tax
Net pay
The Taxberg
$10,021
Net pay
$832
Tax the employer pays
$3,021
Tax you pay
Total tax paid
$3,854
Did you know your employer also pays tax on your salary? It costs the employer $832 to pay you $13,042. In other words, every time you spend $10 of your hard-earned money, $2.95 goes to the government.
Real tax rate
27.8%
So, with you and the employer both paying tax, what used to be a 23.2% tax rate now rises to 27.8%, meaning your real tax rate is actually 4.6% higher than what it seemed at first.
Summary
If you make $13,042 a year living in the region of Ontario, Canada, you will be taxed $3,021. That means that your net pay will be $10,021 per year, or $835 per month. Your average tax rate is 23.2% 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 10,863
16.7%
1
British Columbia
CAD 10,510
19.4%
2
Nunavut
CAD 10,150
22.2%
3
Ontario
CAD 10,021
23.2%
4
Yukon
CAD 9,937
23.8%
5
Northwest Territories
CAD 9,916
24.0%
6
Newfoundland and Labrador
CAD 9,572
26.6%
7
Nova Scotia
CAD 9,561
26.7%
8
New Brunswick
CAD 9,486
27.3%
9
Prince Edward Island
CAD 9,437
27.6%
10
Alberta
CAD 9,412
27.8%
11
Saskatchewan
CAD 9,351
28.3%
12
Manitoba
CAD 9,314
28.6%
13
Show more
North America
Country 
Net pay
Average tax
Rank
USA
CAD 11,826
9.3%
1
Canada
CAD 10,021
23.2%
2
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.