Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$6,827
Federal tax deduction
- $786
Provincial tax deduction
- $145
CPP deduction
- $190
EI deduction
- $108
Total tax
- $1,229
Net pay
* $5,598
Marginal tax rate
30.6%
Average tax rate
18.0%
82.0%
Net pay
18.0%
Total tax
Total tax
Net pay
The Taxberg
$5,598
Net pay
$341
Tax the employer pays
$1,229
Tax you pay
Total tax paid
$1,570
Did you know your employer also pays tax on your salary? It costs the employer $341 to pay you $6,827. In other words, every time you spend $10 of your hard-earned money, $2.30 goes to the government.
Real tax rate
21.9%
So, with you and the employer both paying tax, what used to be a 18% tax rate now rises to 21.9%, meaning your real tax rate is actually 3.9% higher than what it seemed at first.
Summary
If you make $6,827 a year living in the region of Ontario, Canada, you will be taxed $1,229. That means that your net pay will be $5,598 per year, or $466 per month. Your average tax rate is 18.0% and your marginal tax rate is 30.6%. 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 $30.56, hence, your net pay will only increase by $69.44.
Bonus Example
A $1,000 bonus will generate an extra $694 of net incomes. A $5,000 bonus will generate an extra $3,472 of net incomes.
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.