in taxes
out of your taxable income.
The average tax rate is the total tax payable divided by total income. Its helps you quickly find out how much tax you have to pay. For example, if your taxable income is $30,000, and you live in Ontario in 2013, your tax payable is $3,876 with an average tax rate of 12.9%. These calculations do not include tax deductions and tax credits other than the basic personal tax credit.
Tax Tip: By comparing how much tax you have to pay between Ontario and Quebec, you see that Quebec has a higher tax rate. If your taxable income is $50,000, your tax will be $11,373 in Quebec and $8,758 in Ontario. If you plan to move from Quebec to Ontario, you should move before December 31, so you can file your income tax as an Ontario resident rather than as a Quebec resident.
| Taxable Income | Total Tax Payable | Average Tax Rate |
|---|---|---|
| $20,000 | $1,871 | 9.4% |
| $25,000 | $2,873 | 11.5% |
| $30,000 | $3,876 | 12.9% |
| $35,000 | $4,878 | 13.94% |
| $40,000 | $5,892 | 14.7% |
| $45,000 | $7,200 | 16% |
| $50,000 | $8,758 | 17.5% |
| $55,000 | $10,315 | 18.75% |
| $60,000 | $11,873 | 19.8% |
| $65,000 | $13,430 | 20.66% |
| $70,000 | $14,989 | 21.4% |
| $75,000 | $16,637 | 22.18% |
| $80,000 | $18,300 | 22.87% |
| $85,000 | $20,173 | 23.73% |
| $90,000 | $22,258 | 24.73% |
| $95,000 | $24,429 | 25.71% |
| $100,000 | $26,600 | 26.6% |
| $110,000 | $26,600 | 28.13% |
| $120,000 | $35,281 | 29.4% |
| $130,000 | $39,622 | 30.48% |
| $140,000 | $44,112 | %31.51 |
| $150,000 | $48,753 | 32.5% |
| Taxable Income | Total Tax Payable | Average Tax Rate |
|---|---|---|
| $20,000 | $2,083 | 10.4% |
| $25,000 | $3,510 | 14% |
| $30,000 | $4,936 | 16.5% |
| $35,000 | $6,362 | 18.2% |
| $40,000 | $7,790 | 19.47% |
| $45,000 | $9,456 | 21.01% |
| $50,000 | $11,373 | 22.7% |
| $55,000 | $13,292 | 24.2% |
| $60,000 | $15,210 | 25.4% |
| $65,000 | $17,130 | 26.35% |
| $70,000 | $19,047 | 27.2% |
| $75,000 | $20,967 | 27.96% |
| $80,000 | $22,886 | 28.61% |
| $85,000 | $24,917 | 29.31% |
| $90,000 | $27,130 | 30.1% |
| $95,000 | $29,417 | 30.96% |
| $100,000 | $31,701 | 31.7% |
| $110,000 | $36,448 | 33.13% |
| $120,000 | $41,196 | 34.33% |
| $130,000 | $45,940 | 35.34% |
| $140,000 | $50,810 | %36.29 |
| $150,000 | $55,806 | 37.2% |
Taxable income is generally described as gross income minus any deductions, exemptions or other adjustments that are allowable in that tax year. In simple words, your taxable income is equal to all of your incomes such as employment income, rental income, interest income and business income minus your deductions such as RRSP deduction, pension deduction, rental expense and business expense.
To better understand how your tax is affected by your income, you should know the marginal tax rate.
