Salary rate
Annual
Month
Biweekly
Weekly
Day
Hour
Withholding
Salary
$7,920
Federal tax deduction
- $938
Provincial tax deduction
- $248
CPP deduction
- $252
EI deduction
- $125
Total tax
- $1,563
Net pay
* $6,357
Marginal tax rate
30.6%
Average tax rate
19.7%
80.3%
Net pay
19.7%
Total tax
Total tax
Net pay
Summary
If you make $7,920 a year living in the region of Ontario, Canada, you will be taxed $1,563. That means that your net pay will be $6,357 per year, or $530 per month. Your average tax rate is 19.7% 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.
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.