Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$21,750
Federal tax deduction
- $2,862
Provincial tax deduction
- $1,133
CPP deduction
- $1,040
EI deduction
- $344
Total tax
- $5,379
Net pay
* $16,371
Marginal tax rate
31.9%
Average tax rate
24.7%
75.3%
Net pay
24.7%
Total tax
Total tax
Net pay
The Taxberg
$16,371
Net pay
$1,521
Tax the employer pays
$5,379
Tax you pay
Total tax paid
$6,901
Did you know your employer also pays tax on your salary? It costs the employer $1,521 to pay you $21,750. In other words, every time you spend $10 of your hard-earned money, $3.17 goes to the government.
Real tax rate
29.7%
So, with you and the employer both paying tax, what used to be a 24.7% tax rate now rises to 29.7%, meaning your real tax rate is actually 5% higher than what it seemed at first.
Summary
If you make $21,750 a year living in the region of Ontario, Canada, you will be taxed $5,379. That means that your net pay will be $16,371 per year, or $1,364 per month. Your average tax rate is 24.7% 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.
Tax per region
Region
Net pay
Average tax
Rank
Quebec
CAD 17,224
20.8%
1
British Columbia
CAD 16,926
22.2%
2
Nunavut
CAD 16,690
23.3%
3
Ontario
CAD 16,371
24.7%
4
Northwest Territories
CAD 16,303
25.0%
5
Yukon
CAD 16,283
25.1%
6
Newfoundland and Labrador
CAD 15,732
27.7%
7
Nova Scotia
CAD 15,714
27.8%
8
New Brunswick
CAD 15,590
28.3%
9
Prince Edward Island
CAD 15,508
28.7%
10
Alberta
CAD 15,468
28.9%
11
Saskatchewan
CAD 15,366
29.4%
12
Manitoba
CAD 15,305
29.6%
13
Show more
North America
Country 
Net pay
Average tax
Rank
USA
CAD 19,107
12.2%
1
Canada
CAD 16,371
24.7%
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.