OpenTaxCalculator

Australia vs Canada: Taxes & Take-Home Pay 2026

On a $100,000 salary you keep $74,136 in Australia and $71,132 in Canada — $3,003 more per year in Australia ($250 a month). Single filer, standard deductions.

Updated 2026-10-03 · International figures converted at the exchange rate noted in sources; salaries entered in US dollars. Excludes retirement, health and cost-of-living differences.

Take-home pay at every salary

Gross salaryAustraliaCanadaDifference
$40,000$33,778 (15.6% tax)$31,484 (21.3% tax)$2,294
$60,000$47,378 (21.0% tax)$44,460 (25.9% tax)$2,919
$75,000$57,578 (23.2% tax)$55,012 (26.7% tax)$2,566
$100,000$74,136 (25.9% tax)$71,132 (28.9% tax)$3,003
$150,000$103,183 (31.2% tax)$101,428 (32.4% tax)$1,754
$250,000$156,183 (37.5% tax)$156,575 (37.4% tax)-$392
0%26%53%79%105%$20,000$160,000$300,000

Where the money goes at $100,000

Income tax
$23,864
$24,816
Medicare levy
$2,000
$0
CPP (base + first additional)
$0
$2,971
CPP2 (second additional)
$0
$292
Employment Insurance
$0
$789

About taxes in Australia

  • For 2026-27 (1 July 2026 to 30 June 2027) Australian residents pay nil on the first $18,200, 15% from $18,201 to $45,000, 30% to $135,000, 37% to $190,000 and 45% above.
  • The rate on income between $18,201 and $45,000 fell from 16% to 15% on 1 July 2026 and is scheduled to fall to 14% from 1 July 2027.
  • A resident earning $190,000 pays $51,370 in income tax before the Medicare levy and offsets.
  • The Medicare levy is 2% of taxable income; low-income earners get a reduction (for 2025-26, singles below $35,013), which is not modelled here.
  • The Medicare levy surcharge (1% to 1.5% for higher earners without private hospital cover), tax offsets and HELP repayments are not modelled.

About taxes in Canada

  • Federal 2026 rates: 14% up to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482 and 33% above; the lowest rate was cut from 15% to 14% from 1 July 2025.
  • Ontario 2026 rates: 5.05% up to $53,891, 9.15% to $107,785, 11.16% to $150,000, 12.16% to $220,000 and 13.16% above.
  • The 2026 federal basic personal amount is $16,452 (reduced to $14,829 for net income above $258,482), and the Ontario basic personal amount is $12,989; both are non-refundable credits at the lowest rate.
  • CPP 2026: 5.95% employee contribution on earnings between the $3,500 basic exemption and the $74,600 YMPE (maximum $4,230.45), plus CPP2 at 4% between $74,600 and $85,000 (maximum $416).
  • EI 2026: employees outside Quebec pay $1.63 per $100 of insurable earnings up to $68,900, a maximum premium of $1,123.07.

Salary needed to keep the same take-home

If you move between Australia and Canada, this is the gross salary (in US dollars) that leaves the same take-home pay after income tax and employee contributions.

Salary in AustraliaTake-homeSame take-home in Canada needsDifference
$50,000$40,578$54,168+$4,168 (8.3%)
$75,000$57,578$78,734+$3,734 (5.0%)
$100,000$74,136$104,779+$4,779 (4.8%)
$150,000$103,183$152,982+$2,982 (2.0%)

Tax on your next $1,000

The marginal rate — the share of a raise that goes to tax and contributions — often matters more than the average rate.

SalaryAustraliaCanada
$40,00032.0%30.7%
$75,00032.0%30.3%
$100,00039.0%37.2%
$150,00047.0%41.2%
$250,00047.0%46.2%

What employers pay on top

Employer payroll and social contributions are not deducted from your pay, but they affect what employers can afford to offer.

Australia

  • Superannuation guarantee: 12.00% — 12% of qualifying earnings in 2026-27, paid on each payday under Payday Super from 1 July 2026, up to a maximum contribution base of $270,830 a year.

Canada

  • Employer CPP: 5.95% — Matches the employee: 5.95% on earnings between $3,500 and $74,600 in 2026.
  • Employer CPP2: 4.00% — Matches the employee: 4% on earnings between $74,600 and $85,000 in 2026.
  • Employer EI premium: 2.28% — 1.4 times the employee rate (2.282%) on insurable earnings up to $68,900, a maximum of $1,572.30 per employee in 2026 (outside Quebec).

Typical pay and minimum wage

AustraliaCanada
Median earnings1,425 AUD ($989) — median weekly earnings in main job, all employees (ABS Employee Earnings), August 20251,320 CAD ($927) — median weekly wage, full-time employees (Statistics Canada Labour Force Survey), 2025
Minimum wage26.44 AUD/hour ($18.35), from 1 July 2026 (National Minimum Wage)18.15 CAD/hour ($12.75), from 1 April 2026 (federal rate for federally regulated sectors; provinces set their own)

How the two tax systems differ

AustraliaCanada
Tax year1 July 2026 – 30 June 20271 January – 31 December 2026
Filing a tax returnEmployees have PAYG tax withheld from each pay but most still lodge an annual tax return after 30 June.Almost everyone files an annual T1 return even when tax is withheld at source, to claim credits and benefits; the deadline is 30 April (15 June if self-employed).
Consumption taxGST 10%. A broad-based 10% tax; some items, such as basic food, are GST-free.GST/HST 5% (reduced: HST of 13% (Ontario), 14% (Nova Scotia) or 15% (NB, NL, PEI) replaces the 5% GST in harmonized provinces). BC, Manitoba, Saskatchewan and Quebec add a separate provincial sales tax (QST 9.975% in Quebec).
RetirementEmployers must pay the 12% superannuation guarantee into the employee’s super fund on top of wages; employees are not required to contribute but can add salary-sacrifice or personal contributions.The Canada Pension Plan is mandatory: employees and employers each pay 5.95% on earnings between $3,500 and $74,600 plus 4% CPP2 up to $85,000 (Quebec runs the separate QPP). Workplace pensions and RRSPs are voluntary.
HealthcareMedicare is funded from general revenue and the 2% Medicare levy on taxable income; higher earners without private hospital cover may also pay the Medicare levy surcharge of 1% to 1.5%.Health care is universal and funded through taxes; provinces run their own insurance plans under the Canada Health Act, so medically necessary hospital and physician services carry no charge. Some provinces add a premium through the tax system, such as the Ontario Health Premium (up to $900).
Capital gainsNet capital gains are added to taxable income; residents who hold an asset for at least 12 months reduce the gain by the 50% CGT discount.One-half of a capital gain is included in taxable income and taxed at your marginal rate.

Frequently asked questions

Is Australia or Canada better for taxes?

At $100,000, Australia leaves you $3,003 more per year after income and payroll taxes. The gap narrows at higher incomes ($392 at $250,000).

How much is $60,000 after tax in Australia and Canada?

$47,378 in Australia and $44,460 in Canada.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.

  1. ATO – Tax rates: Australian residents
  2. Budget 2026-27 – Cost of living
  3. ATO – What is the Medicare levy?
  4. ATO – Medicare levy reduction for low-income earners
  5. European Central Bank – euro foreign exchange reference rates
  6. CRA – Tax rates and income brackets for 2026
  7. CRA – Indexation of personal income tax and benefit amounts
  8. CRA – T4032-ON Payroll Deductions Tables, January 2026
  9. CRA – T4127 Payroll Deductions Formulas, January 2026
  10. CRA – CPP contribution rates, maximums and exemptions
  11. CRA – EI premium rates and maximums
  12. ATO – How GST works
  13. ATO – Super guarantee rates and maximum contribution base
  14. ATO – CGT discount
  15. ATO – How to work out if you need to lodge a tax return
  16. Fair Work Ombudsman – Minimum wages
  17. ABS – Employee Earnings, August 2025
  18. CRA – GST/HST calculator and rates by province
  19. CRA – T4037 Capital Gains
  20. CRA – Important dates for individuals
  21. Health Canada – Canada’s health care system
  22. Government of Canada – Pay and minimum wage (federal labour standards)
  23. Statistics Canada – Table 14-10-0064-01 Employee wages by industry, annual
  24. Rev. Proc. 2025-32 (2026 inflation adjustments incl. OBBBA)
  25. IRS: Tax inflation adjustments for tax year 2026, including OBBBA amendments
  26. IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500