Quote:
Originally Posted by Crown Royal
yeah, just left it at the default
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For 'normal' wages (i.e. under $500,000, or in this case, $650,000), the
average tax rate is what matters. For instance, in Ontario, you pay over 48% at $150,000, whereas in AB, you don't hit 48% until you are making $314,000. the average tax rate will factor those discrepancies in.
But when your salary is $5M, those details don't matter much. What matters is the highest marginal tax rate because the vast majority of your salary is subject to that top rate.
(other tax structures notwithstanding)