Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$40,000
Federal tax deduction
- $4,483
Provincial tax deduction
- $3,393
EI deduction
- $480
Quebec Pension Plan (QPP)
- $2,245
Quebec Parental Insurance Plan (QPIP)
- $198
Total tax
- $10,798
Net pay
* $29,202
Marginal tax rate
34.4%
Average tax rate
27.0%
73.0%
Net pay
27.0%
Total tax
Total tax
Net pay
The Taxberg
$29,202
Net pay
$3,193
Tax the employer pays
$10,798
Tax you pay
Total tax paid
$13,992
Did you know your employer also pays tax on your salary? It costs the employer $3,193 to pay you $40,000. In other words, every time you spend $10 of your hard-earned money, $3.50 goes to the government.
Real tax rate
32.4%
So, with you and the employer both paying tax, what used to be a 27% tax rate now rises to 32.4%, meaning your real tax rate is actually 5.4% higher than what it seemed at first.
Summary
If you make $40,000 a year living in the region of Quebec, Canada, you will be taxed $10,798. That means that your net pay will be $29,202 per year, or $2,433 per month. Your average tax rate is 27.0% and your marginal tax rate is 34.4%. 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 $34.39, hence, your net pay will only increase by $65.61.
Bonus Example
A $1,000 bonus will generate an extra $656 of net incomes. A $5,000 bonus will generate an extra $3,281 of net incomes.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Nunavut
CAD 30,396
24.0%
1
British Columbia
CAD 30,001
25.0%
2
Northwest Territories
CAD 29,687
25.8%
3
Yukon
CAD 29,583
26.0%
4
Ontario
CAD 29,554
26.1%
5
Quebec
CAD 29,202
27.0%
6
Newfoundland and Labrador
CAD 28,594
28.5%
7
New Brunswick
CAD 28,382
29.0%
8
Alberta
CAD 28,159
29.6%
9
Nova Scotia
CAD 27,969
30.1%
10
Saskatchewan
CAD 27,972
30.1%
11
Prince Edward Island
CAD 27,912
30.2%
12
Manitoba
CAD 27,751
30.6%
13
Show more
Europe
Country 
Net pay
Average tax
Rank
Switzerland
CAD 35,636
10.9%
1
Russia
CAD 34,800
13.0%
2
Ireland
CAD 34,702
13.3%
3
United Kingdom
CAD 34,185
14.5%
4
France
CAD 33,726
15.7%
5
Hungary
CAD 32,600
18.5%
6
Norway
CAD 32,261
19.4%
7
Ukraine
CAD 32,200
19.5%
8
Luxembourg
CAD 31,990
20.0%
9
Czech Republic
CAD 31,403
21.5%
10
Spain
CAD 31,398
21.5%
11
Austria
CAD 31,321
21.7%
12
Sweden
CAD 28,603
28.5%
13
Greece
CAD 28,442
28.9%
14
Germany
CAD 28,138
29.7%
15
Italy
CAD 28,004
30.0%
16
Poland
CAD 27,278
31.8%
17
Denmark
CAD 26,855
32.9%
18
Finland
CAD 26,198
34.5%
19
Portugal
CAD 25,275
36.8%
20
Netherlands
CAD 25,172
37.1%
21
Romania
CAD 23,400
41.5%
22
Belgium
CAD 22,793
43.0%
23
Show more
North America
Country 
Net pay
Average tax
Rank
USA
CAD 32,910
17.7%
1
Canada
CAD 29,554
26.1%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Hong Kong
CAD 37,500
6.3%
1
Taiwan
CAD 35,721
10.7%
2
Thailand
CAD 35,076
12.3%
3
Australia
CAD 34,759
13.1%
4
South Korea
CAD 33,313
16.7%
5
New Zealand
CAD 33,126
17.2%
6
Kazakhstan
CAD 32,035
19.9%
7
Indonesia
CAD 31,831
20.4%
8
Pakistan
CAD 31,727
20.7%
9
Singapore
CAD 31,494
21.3%
10
Japan
CAD 31,212
22.0%
11
Malaysia
CAD 31,060
22.4%
12
Philippines
CAD 30,017
25.0%
13
Vietnam
CAD 28,926
27.7%
14
China
CAD 27,092
32.3%
15
India
CAD 25,946
35.1%
16
Show more
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
CAD 36,165
9.6%
1
Puerto Rico
CAD 35,217
12.0%
2
Costa Rica
CAD 35,039
12.4%
3
Ecuador
CAD 33,992
15.0%
4
Colombia
CAD 32,671
18.3%
5
Panama
CAD 32,560
18.6%
6
Chile
CAD 32,072
19.8%
7
Mexico
CAD 30,834
22.9%
8
Peru
CAD 30,564
23.6%
9
Brazil
CAD 29,782
25.5%
10
Uruguay
CAD 28,889
27.8%
11
Argentina
CAD 25,990
35.0%
12
Show more
Africa
Country 
Net pay
Average tax
Rank
South Africa
CAD 31,350
21.6%
1
Angola
CAD 29,341
26.7%
2
Mozambique
CAD 29,081
27.3%
3
Kenya
CAD 28,706
28.2%
4
Ghana
CAD 27,849
30.4%
5
Ivory Coast
CAD 27,739
30.7%
6
Morocco
CAD 27,387
31.5%
7
Nigeria
CAD 27,381
31.6%
8
Uganda
CAD 26,410
34.0%
9
Cameroon
CAD 26,071
34.8%
10
Senegal
CAD 25,593
36.0%
11
Zambia
CAD 25,007
37.5%
12
Show more
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CAD 38,000
5.0%
1
Qatar
CAD 38,000
5.0%
2
Bahrain
CAD 36,800
8.0%
3
Oman
CAD 36,800
8.0%
4
Saudi Arabia
CAD 36,000
10.0%
5
Kuwait
CAD 35,600
11.0%
6
Israel
CAD 33,491
16.3%
7
Egypt
CAD 30,385
24.0%
8
Lebanon
CAD 30,264
24.3%
9
Turkey
CAD 23,563
41.1%
10
Show more
NOTE* Withholding is calculated based on the Quebec 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.