Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$8,900
Federal tax deduction
- $1,075
Provincial tax deduction
- $340
CPP deduction
- $308
EI deduction
- $141
Total tax
- $1,863
Net pay
* $7,037
Marginal tax rate
30.6%
Average tax rate
20.9%
79.1%
Net pay
20.9%
Total tax
Total tax
Net pay
The Taxberg
$7,037
Net pay
$505
Tax the employer pays
$1,863
Tax you pay
Total tax paid
$2,367
Did you know your employer also pays tax on your salary? It costs the employer $505 to pay you $8,900. In other words, every time you spend $10 of your hard-earned money, $2.66 goes to the government.
Real tax rate
25.2%
So, with you and the employer both paying tax, what used to be a 20.9% tax rate now rises to 25.2%, meaning your real tax rate is actually 4.3% higher than what it seemed at first.
Summary
If you make $8,900 a year living in the region of Ontario, Canada, you will be taxed $1,863. That means that your net pay will be $7,037 per year, or $586 per month. Your average tax rate is 20.9% 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 7,524
15.5%
1
British Columbia
CAD 7,377
17.1%
2
Nunavut
CAD 7,039
20.9%
3
Ontario
CAD 7,037
20.9%
4
Yukon
CAD 6,918
22.3%
5
Northwest Territories
CAD 6,878
22.7%
6
Newfoundland and Labrador
CAD 6,642
25.4%
7
Nova Scotia
CAD 6,634
25.5%
8
New Brunswick
CAD 6,582
26.0%
9
Prince Edward Island
CAD 6,549
26.4%
10
Alberta
CAD 6,532
26.6%
11
Saskatchewan
CAD 6,489
27.1%
12
Manitoba
CAD 6,464
27.4%
13
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North America
Country 
Net pay
Average tax
Rank
USA
CAD 8,131
8.6%
1
Canada
CAD 7,037
20.9%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Australia
CAD 8,900
0.0%
1
Hong Kong
CAD 8,900
0.0%
2
Pakistan
CAD 8,450
5.1%
3
Thailand
CAD 8,413
5.5%
4
Taiwan
CAD 8,112
8.9%
5
Philippines
CAD 8,057
9.5%
6
South Korea
CAD 7,871
11.6%
7
Indonesia
CAD 7,859
11.7%
8
Malaysia
CAD 7,853
11.8%
9
New Zealand
CAD 7,842
11.9%
10
India
CAD 7,486
15.9%
11
Singapore
CAD 7,315
17.8%
12
Vietnam
CAD 7,266
18.4%
13
Japan
CAD 7,232
18.7%
14
Kazakhstan
CAD 7,049
20.8%
15
China
CAD 6,683
24.9%
16
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Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CAD 8,455
5.0%
1
Qatar
CAD 8,455
5.0%
2
Bahrain
CAD 8,188
8.0%
3
Oman
CAD 8,188
8.0%
4
Saudi Arabia
CAD 8,010
10.0%
5
Kuwait
CAD 7,921
11.0%
6
Israel
CAD 7,730
13.2%
7
Egypt
CAD 6,990
21.5%
8
Lebanon
CAD 6,939
22.0%
9
Turkey
CAD 5,447
38.8%
10
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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.