CanPay InsightsAverage rate: what you pay overall
Average rate = (federal tax + provincial tax) ÷ gross income. At $80,000 it is 17.66% in Ontario, 16.59% in British Columbia and 17.17% in Alberta.
Marginal rate: what the next dollar costs
Brackets apply only to the income inside them, so moving into a higher bracket raises the rate on the dollars above the line, not on everything. Our marginal rate also counts CPP and EI, because they come off the same raise until you pass their yearly maximums.
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Frequently Asked Questions
Can a raise put me in a higher bracket and lower my pay?
No. Only the income above the bracket line is taxed at the higher rate, so you always keep part of a raise. At $80,000 in Ontario you keep about two-thirds of the next dollar.
Which rate should I use to value an RRSP contribution?
The marginal rate: an RRSP deduction comes off the top of your income, so it saves tax at the rate of your highest dollars.
Same team · U.S. edition
USAPay Insights
Working in the U.S. instead? Our American sister site is the same calculator, rebuilt for U.S. taxes: federal and state brackets for all 50 states and D.C., FICA, and filing status.
usapayinsights.com