Salary Calculator Canada

For ease of use, our Canadian salary calculator assumes you're single with no dependents. Therefore, your actual tax liability may be higher or lower, depending on your individual circumstances, once specific credits and deductions are taken into account. Nonetheless, this tool offers a good approximation of what to expect on payday.

For a gross annual income of $72,200, our tax calculator projects a tax liability of $1,483 per month, approximately 25% of your paycheck. The table below breaks down the taxes and contributions levied on these employment earnings in Ontario, Canada.

What is considered a "good" salary can vary depending on location, job title, and lifestyle. The most recent data from Statistics Canada indicates that the median salary for full-time workers is $62,400 per year, or $5,200 per month, before taxes. This means that half of workers earn more and half earn less.

It is worth noting that the cost of living in different parts of Canada varies significantly. A salary that may be considered good in one part of the country may not be sufficient to maintain a similar standard of living in another part of the country. The table below lists the median annual gross salaries in the largest Canadian provinces together with the associated monthly take-home pay estimated by our salary calculator.

According to 2023 figures, the average (mean) salary in Canada is $72,200 per year, or $6,017 per month, for full-time employees. This is $9,800 more than the national median salary of $62,400 listed in the previous section, as the average figure tends to be skewed by high earners.

For a clearer look at what residents in the largest Canadian provinces make, we've compiled each province's average salary before taxes, contributions, and premiums have been applied, next to the after-tax figures calculated using our take-home pay calculator. We can see that Ontario, British Columbia, and Alberta boast some of the highest average salaries in the country, while the figures for Quebec dip below the national average.

As of April 2023, the federal minimum wage in Canada is $16.65 per hour, which translates to a yearly salary of $34,632 if we assume the standard 40-hour work week. However, this rate only applies to federally regulated industries, such as postal services, interprovincial transportation, or banks. Outside of these jobs, the minimum wage is regulated by each province or territory.

The table below lists the minimum wage for adult workers in Canada's largest provinces, together with the resulting yearly earnings calculated for a full-time working week of 40 hours. These figures represent gross income, since minimum wage workers are still subject to income tax and other deductions. For example, our calculator estimates a monthly net income of $2,228 for an annual salary of $32,240 in Ontario ($15.50 hourly rate).

If you're an employee, then your employer will automatically send you paychecks with taxes deducted and credits applied. In other words, your take-home pay in Canada is calculated for you. Just remember that the deductions are based on a paper you filled out at the time of your employment: the TD1 Personal Tax Credits Return.

You can also request tax deductions from Canada's tax authority, the Canada Revenue Agency (CRA). When tax time comes, you can send in your return by using any CRA-approved software, a tax representative, or complete a manual file on paper. If you're traditionally employed, the filing deadline is April 30th, but self-employed earners have an extension to June 15th.

Our salary calculator for Canada takes each of the four major tax expenses into account. These include:

• Federal tax, which is the money you're paying to the Canadian government. It starts at a 15% rate and rises with your income up to 33%. If you're employed, then recall that federal taxes have already been taken out of your paychecks.
• Provincial tax, which is the money you're paying to the provincial government. The rate varies based on the province in which the income was generated.
• Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions, which act as a financial security blanket if you lose income due to disability, death, or retirement. These contributions and employer matches are made automatically each time you're paid.
• Employment Insurance (EI), which is a social insurance program supporting the unemployed during their job search or training. For Quebec, the calculator also includes the compulsory Quebec Parental Insurance Plan (QPIP) premiums. EI and QPIP premiums scale with your income and are also deducted automatically from your paycheck.

For a detailed breakdown of the Canadian tax system, an estimate of your taxes due, and a better idea of your net income, visit our Canadian Income Tax Calculator.