Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$40,820
Federal tax deduction
- $5,514
Provincial tax deduction
- $2,371
CPP deduction
- $2,127
EI deduction
- $645
Total tax
- $10,658
Net pay
* $30,162
Marginal tax rate
25.9%
Average tax rate
26.1%
73.9%
Net pay
26.1%
Total tax
Total tax
Net pay
The Taxberg
$30,162
Net pay
$3,030
Tax the employer pays
$10,658
Tax you pay
Total tax paid
$13,688
Did you know your employer also pays tax on your salary? It costs the employer $3,030 to pay you $40,820. In other words, every time you spend $10 of your hard-earned money, $3.35 goes to the government.
Real tax rate
31.2%
So, with you and the employer both paying tax, what used to be a 26.1% tax rate now rises to 31.2%, meaning your real tax rate is actually 5.1% higher than what it seemed at first.
Summary
If you make $40,820 a year living in the region of Ontario, Canada, you will be taxed $10,658. That means that your net pay will be $30,162 per year, or $2,514 per month. Your average tax rate is 26.1% and your marginal tax rate is 25.9%. 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 $25.87, hence, your net pay will only increase by $74.13.
Bonus Example
A $1,000 bonus will generate an extra $741 of net incomes. A $5,000 bonus will generate an extra $3,707 of net incomes.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Nunavut
CAD 31,012
24.0%
1
British Columbia
CAD 30,600
25.0%
2
Northwest Territories
CAD 30,289
25.8%
3
Ontario
CAD 30,162
26.1%
4
Yukon
CAD 30,181
26.1%
5
Quebec
CAD 29,740
27.1%
6
Newfoundland and Labrador
CAD 29,127
28.6%
7
New Brunswick
CAD 28,956
29.1%
8
Alberta
CAD 28,729
29.6%
9
Saskatchewan
CAD 28,539
30.1%
10
Nova Scotia
CAD 28,498
30.2%
11
Prince Edward Island
CAD 28,451
30.3%
12
Manitoba
CAD 28,300
30.7%
13
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Europe
Country 
Net pay
Average tax
Rank
Switzerland
CAD 36,314
11.0%
1
Russia
CAD 35,513
13.0%
2
Ireland
CAD 35,288
13.6%
3
United Kingdom
CAD 34,733
14.9%
4
France
CAD 34,356
15.8%
5
Hungary
CAD 33,268
18.5%
6
Ukraine
CAD 32,860
19.5%
7
Norway
CAD 32,802
19.6%
8
Luxembourg
CAD 32,532
20.3%
9
Czech Republic
CAD 32,010
21.6%
10
Spain
CAD 31,935
21.8%
11
Austria
CAD 31,748
22.2%
12
Sweden
CAD 29,152
28.6%
13
Greece
CAD 28,949
29.1%
14
Germany
CAD 28,598
29.9%
15
Italy
CAD 28,352
30.5%
16
Poland
CAD 27,802
31.9%
17
Denmark
CAD 27,416
32.8%
18
Finland
CAD 26,683
34.6%
19
Portugal
CAD 25,701
37.0%
20
Netherlands
CAD 25,688
37.1%
21
Romania
CAD 23,880
41.5%
22
Belgium
CAD 23,041
43.6%
23
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North America
Country 
Net pay
Average tax
Rank
USA
CAD 33,517
17.9%
1
Canada
CAD 30,162
26.1%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Hong Kong
CAD 38,233
6.3%
1
Taiwan
CAD 36,430
10.8%
2
Thailand
CAD 35,717
12.5%
3
Australia
CAD 35,407
13.3%
4
South Korea
CAD 33,954
16.8%
5
New Zealand
CAD 33,750
17.3%
6
Kazakhstan
CAD 32,699
19.9%
7
Indonesia
CAD 32,428
20.6%
8
Pakistan
CAD 32,280
20.9%
9
Singapore
CAD 32,122
21.3%
10
Japan
CAD 31,771
22.2%
11
Malaysia
CAD 31,589
22.6%
12
Philippines
CAD 30,570
25.1%
13
Vietnam
CAD 29,440
27.9%
14
China
CAD 27,601
32.4%
15
India
CAD 26,412
35.3%
16
Show more
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
CAD 36,906
9.6%
1
Puerto Rico
CAD 35,900
12.1%
2
Costa Rica
CAD 35,700
12.5%
3
Ecuador
CAD 34,623
15.2%
4
Colombia
CAD 33,245
18.6%
5
Panama
CAD 33,181
18.7%
6
Chile
CAD 32,694
19.9%
7
Mexico
CAD 31,386
23.1%
8
Peru
CAD 31,167
23.7%
9
Brazil
CAD 30,377
25.6%
10
Uruguay
CAD 29,483
27.8%
11
Argentina
CAD 26,523
35.0%
12
Show more
Africa
Country 
Net pay
Average tax
Rank
South Africa
CAD 31,880
21.9%
1
Angola
CAD 29,938
26.7%
2
Mozambique
CAD 29,614
27.5%
3
Kenya
CAD 29,280
28.3%
4
Ghana
CAD 28,392
30.5%
5
Ivory Coast
CAD 28,247
30.8%
6
Nigeria
CAD 27,939
31.6%
7
Morocco
CAD 27,884
31.7%
8
Uganda
CAD 26,943
34.0%
9
Cameroon
CAD 26,570
34.9%
10
Senegal
CAD 26,085
36.1%
11
Zambia
CAD 25,511
37.5%
12
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Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CAD 38,779
5.0%
1
Qatar
CAD 38,779
5.0%
2
Bahrain
CAD 37,554
8.0%
3
Oman
CAD 37,554
8.0%
4
Saudi Arabia
CAD 36,738
10.0%
5
Kuwait
CAD 36,330
11.0%
6
Israel
CAD 34,112
16.4%
7
Egypt
CAD 31,000
24.1%
8
Lebanon
CAD 30,879
24.4%
9
Turkey
CAD 24,041
41.1%
10
Show more
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.