Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$5,007
Federal tax deduction
- $533
Provincial tax deduction
- $0.48
CPP deduction
- $85.90
EI deduction
- $79.11
Total tax
- $699
Net pay
* $4,308
Marginal tax rate
28.0%
Average tax rate
14.0%
86.0%
Net pay
14.0%
Total tax
Total tax
Net pay
The Taxberg
$4,308
Net pay
$197
Tax the employer pays
$699
Tax you pay
Total tax paid
$895
Did you know your employer also pays tax on your salary? It costs the employer $197 to pay you $5,007. In other words, every time you spend $10 of your hard-earned money, $1.79 goes to the government.
Real tax rate
17.2%
So, with you and the employer both paying tax, what used to be a 14% tax rate now rises to 17.2%, meaning your real tax rate is actually 3.2% higher than what it seemed at first.
Summary
If you make $5,007 a year living in the region of Ontario, Canada, you will be taxed $699. That means that your net pay will be $4,308 per year, or $359 per month. Your average tax rate is 14.0% and your marginal tax rate is 28.0%. 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 $27.99, hence, your net pay will only increase by $72.01.
Bonus Example
A $1,000 bonus will generate an extra $720 of net incomes. A $5,000 bonus will generate an extra $3,601 of net incomes.
Tax per region
Region
Net pay
Average tax
Rank
Quebec
CAD 4,386
12.4%
1
British Columbia
CAD 4,309
13.9%
2
Ontario
CAD 4,308
14.0%
3
Nunavut
CAD 4,115
17.8%
4
Yukon
CAD 4,081
18.5%
5
Northwest Territories
CAD 4,023
19.7%
6
Newfoundland and Labrador
CAD 3,887
22.4%
7
Nova Scotia
CAD 3,883
22.4%
8
New Brunswick
CAD 3,854
23.0%
9
Prince Edward Island
CAD 3,834
23.4%
10
Alberta
CAD 3,825
23.6%
11
Saskatchewan
CAD 3,800
24.1%
12
Manitoba
CAD 3,786
24.4%
13
Show more
North America
Country 
Net pay
Average tax
Rank
USA
CAD 4,573
8.7%
1
Canada
CAD 4,308
14.0%
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.