Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$6,927
Federal tax deduction
- $800
Provincial tax deduction
- $155
CPP deduction
- $195
EI deduction
- $109
Total tax
- $1,260
Net pay
* $5,667
Marginal tax rate
30.6%
Average tax rate
18.2%
81.8%
Net pay
18.2%
Total tax
Total tax
Net pay
The Taxberg
$5,667
Net pay
$349
Tax the employer pays
$1,260
Tax you pay
Total tax paid
$1,608
Did you know your employer also pays tax on your salary? It costs the employer $349 to pay you $6,927. In other words, every time you spend $10 of your hard-earned money, $2.32 goes to the government.
Real tax rate
22.1%
So, with you and the employer both paying tax, what used to be a 18.2% tax rate now rises to 22.1%, meaning your real tax rate is actually 3.9% higher than what it seemed at first.
Summary
If you make $6,927 a year living in the region of Ontario, Canada, you will be taxed $1,260. That means that your net pay will be $5,667 per year, or $472 per month. Your average tax rate is 18.2% 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 $30.55, hence, your net pay will only increase by $69.45.
Bonus Example
A $1,000 bonus will generate an extra $695 of net incomes. A $5,000 bonus will generate an extra $3,473 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
CAD 6,327
8.7%
1
Canada
CAD 5,667
18.2%
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.