Is $42,000 a good salary in Canada?

The full-time median salary in Canada is around $65,000 (Statistics Canada 2024, full-time employees). $42,000 is roughly 35% below that figure.

How much is $42,000 per hour?

Around $21.54 per hour gross, or $17.33 per hour after tax, assuming a 37.5-hour week.

How much tax do I pay on $42,000?

On $42,000 in Canada, you pay approximately $5,259 in income tax and $2,940 in CPP + EI.

$42,000 After Tax in Canada (2026)

If you earn $42,000 per year in Canada, your take-home pay is $33,801 per year — $2,817 per month, $650 per week, or $17.33 per hour after Income Tax and CPP/EI.

Net pay per month

$2,817

80.5% of gross — $33,801 per year

Income Tax

$5,259

12.5%

CPP + EI

$2,940

7.0%

Effective rate

19.5%

of gross

Marginal rate

20%

on next $1

$42,000 after tax by pay period

Period	Gross	Tax	CPP/EI	Take-home
Yearly	$42,000	$5,259	$2,940	$33,801
Monthly	$3,500	$438	$245	$2,817
Weekly	$808	$101	$57	$650
Daily (260 days)	$162	$20	$11	$130
Hourly (37.5h week)	$21.54	$2.7	$1.51	$17.33

Daily assumes 260 working days. Hourly assumes a 37.5-hour week.

How your tax is calculated

The federal basic personal amount of $15,705 is tax-free. Federal rates then run 15%, 20.5%, 26%, 29% and 33%. CPP and EI contributions are deducted up to an annual ceiling. Provincial tax is not included. Your marginal rate is 20% — every additional $1 you earn keeps roughly $0.80 after tax and CPP/EI.

What if…

$43,000 instead? Your take-home rises by roughly $61/month — see $43,000 after tax.
With a 5% pension contribution, your monthly take-home would be $2,677 but you'd save around $420 in income tax over the year.
10 hours of overtime a month at time-and-a-half would add about $258 to your monthly take-home.

Frequently asked questions

Is $42,000 a good salary in Canada?: The full-time median salary in Canada is around $65,000 (Statistics Canada 2024, full-time employees). $42,000 is roughly 35% below that figure.
How much is $42,000 per hour?: Assuming a 37.5-hour week over 260 working days, $42,000 a year is around $21.54 per hour gross, or $17.33 per hour after tax.
How much tax do I pay on $42,000?: On $42,000 a year in Canada, you would pay approximately $5,259 in income tax and $2,940 in CPP + EI — an effective rate of 19.5%.