Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$23,000
Federal tax deduction
- $3,036
Provincial tax deduction
- $2,109
CPP deduction
- $1,112
EI deduction
- $363
Total tax
- $6,620
Net pay
* $16,380
Marginal tax rate
30.3%
Average tax rate
28.8%
71.2%
Net pay
28.8%
Total tax
Total tax
Net pay
The Taxberg
$16,380
Net pay
$1,620
Tax the employer pays
$6,620
Tax you pay
Total tax paid
$8,240
Did you know your employer also pays tax on your salary? It costs the employer $1,620 to pay you $23,000. In other words, every time you spend $10 of your hard-earned money, $3.58 goes to the government.
Real tax rate
33.5%
So, with you and the employer both paying tax, what used to be a 28.8% tax rate now rises to 33.5%, meaning your real tax rate is actually 4.7% higher than what it seemed at first.
Summary
If you make $23,000 a year living in the region of Prince Edward Island, Canada, you will be taxed $6,620. That means that your net pay will be $16,380 per year, or $1,365 per month. Your average tax rate is 28.8% and your marginal tax rate is 30.3%. 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 $30.28, hence, your net pay will only increase by $69.72.
Bonus Example
A $1,000 bonus will generate an extra $697 of net incomes. A $5,000 bonus will generate an extra $3,486 of net incomes.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Quebec
CAD 18,045
21.5%
1
British Columbia
CAD 17,824
22.5%
2
Nunavut
CAD 17,628
23.4%
3
Northwest Territories
CAD 17,219
25.1%
4
Ontario
CAD 17,222
25.1%
5
Yukon
CAD 17,194
25.2%
6
Newfoundland and Labrador
CAD 16,617
27.8%
7
Nova Scotia
CAD 16,597
27.8%
8
New Brunswick
CAD 16,466
28.4%
9
Prince Edward Island
CAD 16,380
28.8%
10
Alberta
CAD 16,337
29.0%
11
Saskatchewan
CAD 16,229
29.4%
12
Manitoba
CAD 16,165
29.7%
13
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Europe
Country 
Net pay
Average tax
Rank
Ireland
CAD 22,807
0.8%
1
United Kingdom
CAD 22,786
0.9%
2
Switzerland
CAD 21,332
7.3%
3
Spain
CAD 20,550
10.7%
4
France
CAD 20,161
12.3%
5
Norway
CAD 20,035
12.9%
6
Russia
CAD 20,010
13.0%
7
Luxembourg
CAD 19,698
14.4%
8
Austria
CAD 19,441
15.5%
9
Czech Republic
CAD 18,823
18.2%
10
Italy
CAD 18,758
18.5%
11
Hungary
CAD 18,745
18.5%
12
Ukraine
CAD 18,515
19.5%
13
Germany
CAD 18,280
20.5%
14
Greece
CAD 17,335
24.6%
15
Sweden
CAD 17,211
25.2%
16
Poland
CAD 16,423
28.6%
17
Portugal
CAD 15,687
31.8%
18
Finland
CAD 15,545
32.4%
19
Denmark
CAD 15,390
33.1%
20
Belgium
CAD 15,276
33.6%
21
Netherlands
CAD 14,474
37.1%
22
Romania
CAD 13,455
41.5%
23
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North America
Country 
Net pay
Average tax
Rank
USA
CAD 20,077
12.7%
1
Canada
CAD 17,222
25.1%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Hong Kong
CAD 21,840
5.1%
1
Australia
CAD 21,613
6.0%
2
Thailand
CAD 21,141
8.1%
3
Taiwan
CAD 20,967
8.8%
4
South Korea
CAD 19,990
13.1%
5
Pakistan
CAD 19,719
14.3%
6
New Zealand
CAD 19,469
15.4%
7
Malaysia
CAD 19,374
15.8%
8
Indonesia
CAD 19,362
15.8%
9
Japan
CAD 18,586
19.2%
10
Philippines
CAD 18,470
19.7%
11
Singapore
CAD 18,363
20.2%
12
Kazakhstan
CAD 18,265
20.6%
13
Vietnam
CAD 17,539
23.7%
14
India
CAD 16,290
29.2%
15
China
CAD 16,251
29.3%
16
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Latin America
Country 
Net pay
Average tax
Rank
Puerto Rico
CAD 20,814
9.5%
1
Guatemala
CAD 20,795
9.6%
2
Costa Rica
CAD 20,585
10.5%
3
Ecuador
CAD 20,540
10.7%
4
Colombia
CAD 20,287
11.8%
5
Panama
CAD 19,700
14.4%
6
Chile
CAD 18,737
18.5%
7
Mexico
CAD 18,639
19.0%
8
Uruguay
CAD 17,828
22.5%
9
Peru
CAD 17,818
22.5%
10
Brazil
CAD 17,457
24.1%
11
Argentina
CAD 14,940
35.0%
12
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Africa
Country 
Net pay
Average tax
Rank
South Africa
CAD 19,523
15.1%
1
Mozambique
CAD 17,328
24.7%
2
Angola
CAD 16,974
26.2%
3
Morocco
CAD 16,955
26.3%
4
Kenya
CAD 16,806
26.9%
5
Ivory Coast
CAD 16,647
27.6%
6
Ghana
CAD 16,604
27.8%
7
Nigeria
CAD 15,818
31.2%
8
Cameroon
CAD 15,727
31.6%
9
Uganda
CAD 15,360
33.2%
10
Senegal
CAD 15,206
33.9%
11
Zambia
CAD 14,552
36.7%
12
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Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CAD 21,850
5.0%
1
Qatar
CAD 21,850
5.0%
2
Bahrain
CAD 21,160
8.0%
3
Oman
CAD 21,160
8.0%
4
Saudi Arabia
CAD 20,700
10.0%
5
Kuwait
CAD 20,470
11.0%
6
Israel
CAD 19,975
13.2%
7
Egypt
CAD 17,635
23.3%
8
Lebanon
CAD 17,514
23.9%
9
Turkey
CAD 13,026
43.4%
10
Show more
NOTE* Withholding is calculated based on the Prince Edward Island 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.