Is $40,000 a good salary in Toronto?
$40,000 is about an average salary for Toronto — around the 48th income percentile, close to the median there. Take-home is about $32,062 after tax, CPP and EI.
Median individual income is $41,900 in Toronto, against $44,640 across Ontario — so this salary sits at the 48th percentile locally and the 45th provincially.
Income figures cover the census metropolitan area (CMA) of Toronto, the region Statistics Canada reports, not the municipality alone.
One page answers all three — how you compare, what you keep, and your tax rate.
I'm in the 48th income percentile in Toronto.
Where you stand
How you compare to Toronto earners
Based on individual employment income. You earn more than about 48% of residents.
Your paycheque
Where your $40,000 goes
Estimated 2026 deductions for a resident of Ontario, employment income.
Average tax rate ≈ 12.8% · Total deductions ≈ 19.8% · Marginal ≈ 19.1%
Educational information only — not financial, tax, or legal advice. Figures are estimates based on official CRA & Statistics Canada data.
Take-home pay uses Ontario tax rates — income tax is provincial, not municipal.
Compare provinces
Where $40,000 goes furthest
Take-home pay, tax rate, and income percentile for $40,000 in every province and territory.
| # | Province / territory | Take-home pay | Avg. tax rate | Total deductions | Income percentile |
|---|---|---|---|---|---|
| 1 | Nunavut | $33,062 | 10.3% | 17.3% | 49th |
| 2 | Northwest Territories | $32,587 | 11.5% | 18.5% | 36th |
| 3 | British Columbia | $32,506 | 11.7% | 18.7% | 44th |
| 4 | Alberta | $32,497 | 11.7% | 18.8% | 42nd |
| 5 | Yukon | $32,368 | 12.0% | 19.1% | 32nd |
| 6 | Ontario | $32,062 | 12.8% | 19.8% | 45th |
| 7 | Saskatchewan | $31,617 | 13.9% | 21.0% | 44th |
| 8 | New Brunswick | $31,398 | 14.4% | 21.5% | 49th |
| 9 | Newfoundland and Labrador | $31,377 | 14.5% | 21.6% | 50th |
| 10 | Manitoba | $31,280 | 14.7% | 21.8% | 47th |
| 11 | Quebec | $31,255 | 14.4% | 21.9% | 44th |
| 12 | Prince Edward Island | $31,164 | 15.0% | 22.1% | 46th |
| 13 | Nova Scotia | $30,837 | 15.8% | 22.9% | 48th |
Ontario and Quebec figures are approximate: Ontario's surtax and Quebec's QPP2, parental insurance (QPIP), and prescription-drug contribution aren't modelled.
What's next