Canadian income tax rates for Individuals - current and previous years Federal tax rates for 2014
- 15% on the first $43,953 of taxable income, +
- 22% on the next $43,954 of taxable income (on the portion of taxable income over $43,953 up to $87,907), +
- 26% on the next $48,363 of taxable income (on the portion of taxable income over $87,907 up to $136,270), +
- 29% of taxable income over $136,270.
Provincial/territorial tax rates (combined chart)
11.16% on the next $69,758, +
12.16% on the next $70,000, +
13.16 % on the amount over $220,000
Plus, don't forget EI and CPP, I assume they pay that as well.
It's not that simple to calculate, Most professional athletes keep a residence either in their home country or the United States which allows them to pay their taxes a little differently than the average person.
Because not all of their money is earned within Canada they can only be taxed based on the income they make while playing at home or in another Canadian city. The rest of their tax would be payed to the government of the city/state/country their "official" residence is in.
It all depends on what state you live in. Michigan's tax rate combined with the federal tax rate actually costs Alfredsson more than he would be paying in Ontario.
On his 5.5 million contract he just finished he would have paid approximately 2.49 million in taxes. (45.3%) vs the maximum (42%) in Canada.
Of course you also have to assume that professional athletes making that kind of money likely have a pretty good accountant and/or financial planner who helps them pay the lowest tax rate possible.