General information only — not financial advice for your situation.
This is a learning tool. Always check CRA My Account records and talk to a qualified professional for your own numbers.
Plain English
The overall percentage of your total income that actually goes to tax. It's usually lower than your marginal rate because your first dollars are taxed at lower brackets.
Technical definition
Total tax liability divided by total gross income, expressed as a percentage. Unlike the marginal rate, the average rate reflects the blended effect of all applicable brackets on the taxpayer's entire income, producing a lower figure because initial income is taxed at the lowest rates.
Examples
- • You earn $80,000 and owe $14,400 in total federal + provincial tax. Your average tax rate is $14,400 ÷ $80,000 = 18%, even though your marginal rate is about 29.65%.
- • Someone earning $50,000 who pays $7,500 total tax has an average rate of 15%.
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About this site
Every number on this site is sourced from CRA publications, the Income Tax Act, or provincial fiscal releases. We show the math, cite the sources, and never tell you what to do with your money.