Australia vs Canada: Tax Comparison
Compare income tax rates and take-home pay between Australia and Canada
You'd keep $3,022 more in Australia
Australia
25.6% tax
Canada · Ontario
28.6% tax
$252/mo difference
Side-by-side breakdown
Australia
2025/26
Income
Taxes & Contributions
Canada · Ontario
2025
Income
Taxes & Contributions
Tax rate by income level
Understanding the difference
Australia wins on simplicity
Australia's tax system is straightforward: earn money, pay tax at clear rates, get Medicare included. Canada layers federal, provincial, and surtax on top of mandatory pension contributions, making your actual take-home much harder to predict.
Canada's safety net costs more
Canada forces you into CPP and EI contributions on every paycheck, which feels like extra tax but funds a more generous pension and unemployment system. Australia relies on employer superannuation (hidden from your payslip) to build retirement savings you can't touch until 65.
Australia's healthcare is baked in
The Medicare levy is mandatory and gets you universal coverage. Canada doesn't tax employment income for healthcare; instead it funds public medicine through general revenue, so you don't see the cost clearly in your paycheck.
High earners flee Australia, stay in Canada
Australia hits top earners with 45% plus 2% Medicare levy, making it the steeper final climb. Canada's top federal rate is 33%, and while Ontario adds layers, the total burden is lower enough that skilled workers don't flee as aggressively.
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