Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$5,655
Federal tax deduction
- $623
Provincial tax deduction
- $44.57
CPP deduction
- $123
EI deduction
- $89.35
Total tax
- $880
Net pay
* $4,775
Marginal tax rate
28.0%
Average tax rate
15.6%
84.4%
Net pay
15.6%
Total tax
Total tax
Net pay
The Taxberg
$4,775
Net pay
$248
Tax the employer pays
$880
Tax you pay
Total tax paid
$1,128
Did you know your employer also pays tax on your salary? It costs the employer $248 to pay you $5,655. In other words, every time you spend $10 of your hard-earned money, $1.99 goes to the government.
Real tax rate
19.1%
So, with you and the employer both paying tax, what used to be a 15.6% tax rate now rises to 19.1%, meaning your real tax rate is actually 3.5% higher than what it seemed at first.
Summary
If you make $5,655 a year living in the region of Ontario, Canada, you will be taxed $880. That means that your net pay will be $4,775 per year, or $398 per month. Your average tax rate is 15.6% 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 4,908
13.2%
1
British Columbia
CAD 4,819
14.8%
2
Ontario
CAD 4,775
15.6%
3
Nunavut
CAD 4,602
18.6%
4
Yukon
CAD 4,553
19.5%
5
Northwest Territories
CAD 4,498
20.5%
6
Newfoundland and Labrador
CAD 4,346
23.1%
7
Nova Scotia
CAD 4,341
23.2%
8
New Brunswick
CAD 4,308
23.8%
9
Prince Edward Island
CAD 4,286
24.2%
10
Alberta
CAD 4,275
24.4%
11
Saskatchewan
CAD 4,248
24.9%
12
Manitoba
CAD 4,232
25.2%
13
Show more
North America
Country 
Net pay
Average tax
Rank
USA
CAD 5,165
8.7%
1
Canada
CAD 4,775
15.6%
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.