Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$20,171
Federal tax deduction
- $2,642
Provincial tax deduction
- $965
CPP deduction
- $950
EI deduction
- $319
Total tax
- $4,876
Net pay
* $15,295
Marginal tax rate
31.9%
Average tax rate
24.2%
75.8%
Net pay
24.2%
Total tax
Total tax
Net pay
The Taxberg
$15,295
Net pay
$1,396
Tax the employer pays
$4,876
Tax you pay
Total tax paid
$6,272
Did you know your employer also pays tax on your salary? It costs the employer $1,396 to pay you $20,171. In other words, every time you spend $10 of your hard-earned money, $3.11 goes to the government.
Real tax rate
29.1%
So, with you and the employer both paying tax, what used to be a 24.2% tax rate now rises to 29.1%, meaning your real tax rate is actually 4.9% higher than what it seemed at first.
Summary
If you make $20,171 a year living in the region of Ontario, Canada, you will be taxed $4,876. That means that your net pay will be $15,295 per year, or $1,275 per month. Your average tax rate is 24.2% and your marginal tax rate is 31.9%. 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 $31.87, hence, your net pay will only increase by $68.13.
Bonus Example
A $1,000 bonus will generate an extra $681 of net incomes. A $5,000 bonus will generate an extra $3,407 of net incomes.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Quebec
CAD 16,186
19.8%
1
British Columbia
CAD 15,791
21.7%
2
Nunavut
CAD 15,504
23.1%
3
Ontario
CAD 15,295
24.2%
4
Northwest Territories
CAD 15,145
24.9%
5
Yukon
CAD 15,132
25.0%
6
Newfoundland and Labrador
CAD 14,615
27.5%
7
Nova Scotia
CAD 14,598
27.6%
8
New Brunswick
CAD 14,483
28.2%
9
Prince Edward Island
CAD 14,407
28.6%
10
Alberta
CAD 14,370
28.8%
11
Saskatchewan
CAD 14,275
29.2%
12
Manitoba
CAD 14,218
29.5%
13
Show more
North America
Country 
Net pay
Average tax
Rank
USA
CAD 17,879
11.4%
1
Canada
CAD 15,295
24.2%
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.