Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$7,438
Federal tax deduction
- $871
Provincial tax deduction
- $203
CPP deduction
- $224
EI deduction
- $118
Total tax
- $1,416
Net pay
* $6,022
Marginal tax rate
30.6%
Average tax rate
19.0%
81.0%
Net pay
19.0%
Total tax
Total tax
Net pay
The Taxberg
$6,022
Net pay
$389
Tax the employer pays
$1,416
Tax you pay
Total tax paid
$1,805
Did you know your employer also pays tax on your salary? It costs the employer $389 to pay you $7,438. In other words, every time you spend $10 of your hard-earned money, $2.43 goes to the government.
Real tax rate
23.1%
So, with you and the employer both paying tax, what used to be a 19% tax rate now rises to 23.1%, meaning your real tax rate is actually 4.1% higher than what it seemed at first.
Summary
If you make $7,438 a year living in the region of Ontario, Canada, you will be taxed $1,416. That means that your net pay will be $6,022 per year, or $502 per month. Your average tax rate is 19.0% 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 $30.55, 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.
Tax per region
Region
Net pay
Average tax
Rank
Quebec
CAD 6,346
14.7%
1
British Columbia
CAD 6,225
16.3%
2
Ontario
CAD 6,022
19.0%
3
Nunavut
CAD 5,941
20.1%
4
Yukon
CAD 5,853
21.3%
5
Northwest Territories
CAD 5,806
21.9%
6
Newfoundland and Labrador
CAD 5,607
24.6%
7
Nova Scotia
CAD 5,601
24.7%
8
New Brunswick
CAD 5,558
25.3%
9
Prince Edward Island
CAD 5,529
25.7%
10
Alberta
CAD 5,515
25.9%
11
Saskatchewan
CAD 5,480
26.3%
12
Manitoba
CAD 5,458
26.6%
13
Show more
North America
Country 
Net pay
Average tax
Rank
USA
CAD 6,794
8.7%
1
Canada
CAD 6,022
19.0%
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.