Salary Rate
Year
Month
Biweekly
Week
Day
Hour
Withholding
Salary
$20,000
Federal tax deduction
- $652
Provincial tax deduction
- $314
CPP deductions
- $866
EI deductions
- $316
Total tax
- $2,147
Net pay
* $17,853
Marginal tax rate
33.4%
Average tax rate
10.7%
89.3%
Net pay
10.7%
Total tax
Total tax
Net pay
Summary
If you make $20,000 a year living in the region of Ontario, Canada, you will be taxed $2,147. That means that your net pay will be $17,853 per year, or $1,488 per month. Your average tax rate is 10.7% and your marginal tax rate is 33.4%. 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 $33.36, hence, your net pay will only increase by $66.64.
Bonus Example
A $1,000 bonus will generate an extra $666 of net incomes. A $5,000 bonus will generate an extra $3,332 of net incomes.
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.