Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$5,031
Federal tax deduction
- $537
Provincial tax deduction
- $2.11
CPP deduction
- $87.27
EI deduction
- $79.49
Total tax
- $705
Net pay
* $4,326
Marginal tax rate
28.0%
Average tax rate
14.0%
86.0%
Net pay
14.0%
Total tax
Total tax
Net pay
The Taxberg
$4,326
Net pay
$199
Tax the employer pays
$705
Tax you pay
Total tax paid
$904
Did you know your employer also pays tax on your salary? It costs the employer $199 to pay you $5,031. In other words, every time you spend $10 of your hard-earned money, $1.80 goes to the government.
Real tax rate
17.3%
So, with you and the employer both paying tax, what used to be a 14% tax rate now rises to 17.3%, meaning your real tax rate is actually 3.3% higher than what it seemed at first.
Summary
If you make $5,031 a year living in the region of Ontario, Canada, you will be taxed $705. That means that your net pay will be $4,326 per year, or $360 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.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Quebec
CAD 4,405
12.4%
1
British Columbia
CAD 4,328
14.0%
2
Ontario
CAD 4,326
14.0%
3
Nunavut
CAD 4,133
17.8%
4
Yukon
CAD 4,099
18.5%
5
Northwest Territories
CAD 4,041
19.7%
6
Newfoundland and Labrador
CAD 3,904
22.4%
7
Nova Scotia
CAD 3,900
22.5%
8
New Brunswick
CAD 3,870
23.1%
9
Prince Edward Island
CAD 3,851
23.5%
10
Alberta
CAD 3,841
23.6%
11
Saskatchewan
CAD 3,817
24.1%
12
Manitoba
CAD 3,802
24.4%
13
Show more
North America
Country 
Net pay
Average tax
Rank
USA
CAD 4,595
8.7%
1
Canada
CAD 4,326
14.0%
2
Africa
Country 
Net pay
Average tax
Rank
South Africa
CAD 4,981
1.0%
1
Morocco
CAD 4,644
7.7%
2
Kenya
CAD 4,293
14.7%
3
Ivory Coast
CAD 4,235
15.8%
4
Cameroon
CAD 4,232
15.9%
5
Mozambique
CAD 4,092
18.7%
6
Zambia
CAD 4,001
20.5%
7
Ghana
CAD 3,932
21.9%
8
Angola
CAD 3,835
23.8%
9
Senegal
CAD 3,702
26.4%
10
Uganda
CAD 3,681
26.8%
11
Nigeria
CAD 3,595
28.5%
12
Show more
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.