| The amount of tax you pay depends on your total taxable income including your salary + bonus + Investment income + other income minus eligible deductions and tax credits such as RRSPs, donations, medical expenses, tuition, etc.
To help you figure out your tax rate, we have prepared this tax grid. There are two tax rates you first need to know; the marginal tax rate and the average tax rate. Your marginal tax rate is the rate of tax you pay on the last dollar earned. It works by slices or bracket. The Average Tax Rate Is the rate of tax you pay on your whole income.
For example, if you earn a total of $50,000, your marginal tax rate is 31.15%, which is the rate you will pay for income above $36,378. You will not pay 31.15% on your entire $50,000; just on the “income above $36,378”. In fact, you will pay only 20.37% on your whole $50,000 which is your average tax rate.
If you sold an investment or earned extra income from self-employment or from a second employer where enough tax is not deducted, you need to save enough to cover your tax bill calculated by using the Marginal Tax rate.
Taxable income ranges |
Marginal Rate (1) |
Tax per threshold |
Tax payable
|
Average Tax Rate |
|
$ – $ 8,858
|
0.00%
|
$0
|
$0
|
0% |
$ 8,859 – $ 14,941
|
15.25%
|
$928
|
$928
|
6% |
$ 14,942 – $ 16,336
|
21.30%
|
$297
|
$1,225
|
7% |
$ 16,337 – $ 26,558
|
24.90%
|
$2,545
|
$3,770
|
14% |
$ 26,559 – $ 33,755
|
21.30%
|
$1,533
|
$5,303
|
16% |
$ 33,756 – $ 36,378
|
24.40%
|
$640
|
$5,943
|
16% |
$ 36,379 – $ 67,511
|
31.15%
|
$9,697
|
$15,640
|
23% |
$ 67,512 – $ 72,756
|
33.70%
|
$1,767
|
$17,407
|
24% |
$ 72,757 – $ 77,510
|
37.70%
|
$1,792
|
$19,199
|
25% |
$ 77,511 – $ 94,121
|
39.70%
|
$6,594
|
$25,793
|
27% |
$ 94,122 – $ 118,285
|
40.70%
|
$9,834 |
$35,627 |
30% |
$ 118,285 and more |
43.70% |
|
|
|
Taxable income ranges
|
Tax payable (2) |
Average Tax Rate |
$ 8,858
|
$0
|
0.00% |
$ 10,000
|
$174
|
1.74% |
$ 20,000
|
$2,137
|
10.69% |
$ 30,000
|
$4,503
|
15.01% |
$ 40,000
|
$7,071
|
17.68% |
$ 50,000
|
$10,186
|
20.37% |
$ 60,000
|
$13,301
|
22.17% |
$ 70,000
|
$16,479
|
23.54% |
$ 80,000
|
$20,189
|
25.24% |
$ 90,000
|
$24,159
|
26.84% |
$ 100,000
|
$28,187
|
28.19% |
$ 120,000
|
$36,379
|
30.32% |
$ 150,000
|
$49,489
|
32.99% |
$ 200,000
|
$71,339
|
35.67% |
| $ 250,000 |
$93,189 |
37.28% |
|
Taxes saved per $1000 of RRSP |
Income
|
Tax saved |
$ 20,000
|
$ 249.00 |
$ 30,000
|
$ 213.00 |
$ 40,000
|
$ 311.50 |
$ 50,000
|
$ 311.50 |
$ 60,000
|
$ 311.50 |
$ 70,000
|
$ 337.00 |
$ 80,000
|
$ 397.00 |
| or more than $ 118,286 |
$ 437.00 |
Earnst & Young has a great tax calculator which you can use to estimate your taxes.
(1) Marginal Rate on salary & interest.
|
