Salary breakdown

Gross Income Tax Due Net Income
Yearly
Monthly

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Gross Income
is the sum of all your earnings before any taxes have been deducted, minus any exemptions.
Net Income
is the money you take home after all taxes and contributions have been deducted from your gross salary.

Tax Due is the sum of all taxes and contributions that will be deducted from your gross salary. The deductions used in the above salary calculator assume you are not married and you have no dependents.

Federal Tax
is calculated based on a person's net taxable income. The tax is progressive (five tax brackets), it starts at 15% for incomes up to 45,282 CAD and ends at 33% for incomes greater than 200,000 CAD. This means that high income residents pay a higher percentage than the low income residents.
Provincial Tax
is computed in the same way as the federal tax, but using the applicable province's tax brackets, rates, and credits. The Canada Revenue Agency (CRA) collects and administers the individual income taxes for the governments, except for the province of Quebec.
Disclaimer: The information presented on this page is based on the Canadian fiscal regulations for 2016 (visit cra-arc.gc.ca for more details).

Salary comparison

People searching for salaries in Canada also checked the salary calculator for Australia and the United Kingdom.
Rank your income! The chart below shows where you stand compared to the rest of the world. The minimum and the average salaries in the chart are net of tax.

Did you know?

The average monthly net salary in Canada is around 2997 CAD, with a minimum income of CAD per month. This places Canada on the 12th place in the International Labour Organisation statistics for 2012, after France, but before Germany.

In Canada income tax is usually deducted from the gross monthly salary at source, through a pay-as-you-earn (PAYE) system. Self-employed individuals are required to file an income tax return every year. The deduction includes the Federal and Provincial income taxes.

Canada has one of the most stable business climates in the world and is regarded as an attractive investment destination, according to Forbes and Bloomberg. The World Economic Forum declared the country's banking system to be the most prosperous in the world, for seven years consecutively.

According to the Organisation for Economic Co-operation and Development (OECD), Canada is the third best country to live in the world, with the best quality of life, after Australia and Sweden. Canada is often praised for its universal health care system, its clean and friendly cities, its world-class universities, and its multicultural population.

Canada is an immigrant-friendly country with a immigration system that recognizes the importance of immigrants and their potential contribution to the Canadian society. According to official statistics, over 28% of the population was born outside the country, with most immigrants coming from China, India, and the Philippines.

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