Bonus Tax Calculator (Canada, 2026)
See how much of your 2026 bonus you keep after tax. It shows what your employer withholds and what comes back when you file. Send part of the bonus to your RRSP to see the tax you avoid. You can also compare your year with and without the bonus.
| Taken off now vs what you really owe | |
|---|---|
| If your employer uses the CRA bonus method (most do) | $2,905.70 |
| If the bonus is lumped into a regular every 2 weeks cheque | $4,668.37 |
| Real tax on the bonus (settled when you file) | $2,905.70 |
| Refund when you file, if the second method was used | $1,762.67 |
| CPP on the bonus | $200.00 |
| EI on the bonus | None, you already hit the yearly maximum |
Year with and without the bonus
| Salary only | Salary + bonus | |
|---|---|---|
| Gross | $80,000 | $90,000 |
| Income tax | $14,128 | $17,034 |
| CPP and EI | $5,570 | $5,770 |
| Take-home | $60,303 | $67,197 |
| Average tax rate | 17.7% | 18.9% |
Any extra tax taken off comes back when you file, usually within two weeks if you NETFILE. To keep the whole bonus working for you, ask payroll to put it into your group RRSP or your own RRSP (up to your room) before it is paid.
Show the math
Real tax = income tax on $90,000 minus income tax on $80,000, using 2026 Ontario brackets. So it includes any bracket you cross. The CRA bonus method annualizes your regular pay, adds the bonus, and taxes the difference. That lands close to the real figure. The periodic method treats the bonus as if you earned it every pay period. That takes too much off, and the difference comes back when you file. When your total pay for the year, bonus included, is $5,000 or less, the CRA has employers withhold a flat 15% (10% in Quebec) instead. CPP applies at 5.95% (plus 4% CPP2 between $74,600 and $85,000) and EI at 1.63% until you hit the yearly maximums.
How this calculator works
The tax on a bonus is the tax on your salary plus the bonus, minus the tax on your salary alone. The calculator uses the 2026 federal and provincial brackets, credits, surtaxes and health premiums. That is what you owe once you file, whatever the employer withheld.
CPP and EI come off at the normal rates until you reach the annual maximums. Past the ceilings, nothing more comes off.
Worked example: $80,000 salary, $10,000 bonus, Ontario
| Line | Amount |
|---|---|
| Bonus | $10,000.00 |
| Income tax at the marginal rate (29.1%) | − $2,905.70 |
| CPP (CPP2 on earnings between $74,600 and $85,000) | − $200.00 |
| EI | − $0.00 |
| You keep | $6,894.30 |
Assumptions
- Single employee with the basic personal amount. Bonus and salary are paid in the same tax year.
- Payroll withholding may differ slightly from the true tax. The difference is settled on your return.
How to keep more of the bonus
Two forms tell your employer to withhold less at source, so the money is in your hands now instead of in a refund next spring.
Common questions
Frequently asked questions
- How much tax is taken off a bonus in Canada?
- Your marginal rate, the same as a raise. On an $80,000 salary in Ontario, a $10,000 bonus is taxed at about 29.65%, plus any CPP and EI still owing. You keep roughly $6,900 to $7,000. There is no special bonus rate. It only looks higher on the cheque because withholding on a lump sum is worked out differently from regular pay.
- Why was so much withheld from my bonus cheque?
- Employers must use the CRA's bonus method. It taxes the bonus at your top rate, often 30% to 45%, and CPP and EI come off without the usual per-period exemption. If the bonus was added to a regular cheque instead, payroll taxed it as if you earned that every period. Any excess comes back as a refund when you file.
- Can I avoid tax on a bonus?
- You can defer it. Ask payroll before the bonus is paid to send it straight into a group RRSP or your own RRSP, up to your room, and no tax is withheld. Or ask to receive it in January if next year's income will be lower.
- Do CPP and EI apply to bonuses?
- Yes, at the normal rates until you reach the annual maximums. In 2026 those are $4,230.45 for CPP plus $416 for CPP2, and $1,123.07 for EI. If your salary already exceeds the ceilings, nothing more is taken.
- Are commissions taxed differently?
- No. Commissions are employment income, taxed the same way. The only difference is that self-employed commission salespeople can deduct expenses.
- What about a signing bonus or retention bonus?
- Same treatment. It is employment income in the year you receive it. If you repay it in a later year, you deduct the repayment that year (line 22900 or as a salary repayment). If your income is lower that year, the deduction may not fully offset the tax you paid.
Sources
Sources
Every figure on this page comes from one of these primary sources. Data last verified .
- CRA T4127 Payroll Deductions Formulas, 123rd Edition, effective July 1, 2026 (Rev. 26/06)
- CRA – CPP contribution rates, maximums and exemptions
- CRA – Second additional CPP (CPP2) contribution rates and maximums
- ESDC – EI maternity and parental benefits: how much you could receive
- CRA – EI premium rates and maximums
- CRA – Indexation adjustment for personal income tax and benefit amounts
- Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 150(1)(d) and s. 156.1(4): filing deadlines and balance-due day
- Canada Employment Insurance Commission – Canada Employment Insurance Commission confirms 2027 Employment Insurance premium rate (September 14, 2026)
- CRA, Canadian income tax rates for individuals, current and previous years
- Government of Alberta, Personal income tax
- Government of British Columbia, Personal income tax rates (2026)
- Government of British Columbia, B.C. tax reduction credit
- Manitoba Finance, Personal income taxes
- CRA, T4032 Payroll Deductions Tables, New Brunswick (January 2026)
- Government of New Brunswick, Personal income tax
- Newfoundland and Labrador Department of Finance, Personal income tax
- Newfoundland and Labrador, Bill 16 (2026), An Act to Amend the Income Tax Act, 2000
- Nova Scotia Finance and Treasury Board, Personal income tax indexation update for 2026
- Nova Scotia Income Tax Act (consolidated), s. 35 low income tax reduction
- CRA, T4032 Payroll Deductions Tables, Northwest Territories (January 2026)
- Government of Nunavut, January 2026 Tax Rate Sheet
- CRA, T4032 Payroll Deductions Tables, Nunavut (January 2026)
- Ontario Ministry of Finance, Personal income tax rates and credits (2026 dataset)
- Prince Edward Island Income Tax Act (consolidated 2026)
- Revenu Québec, TP-1015.F-V (2026-01) Formulas to Calculate Source Deductions and Contributions
- Retraite Québec, Québec Pension Plan Figures 2026
- Gouvernement du Québec (Québec.ca), Taux de cotisations au Régime québécois d'assurance parentale (RQAP) — page updated 19 March 2026
- Ministère des Finances du Québec, Parameters of the Personal Income Tax System for 2026 (November 2025)
- Government of Saskatchewan, Personal income tax
- CRA, T4032 Payroll Deductions Tables, Yukon (January 2026)
- CRA, Bonuses, retroactive pay increases or irregular amounts (bonus method)
- CRA, Special payments chart
- CRA, CPP contribution rates, maximums and exemptions
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