After Tax Canada / Bonus tax calculatorVersion française
Bonus tax calculator Canada (2026)
Bonuses are taxed at your marginal rate, like extra salary. Your employer withholds with the CRA bonus method (tax on salary + bonus, minus tax on salary alone), so the cheque lands close to the real number. Enter your numbers to see what you actually keep.
Ontario · 2026
$6,826You keep $6,826 of your $10,000 bonus
Effective tax rate on the bonus: 31.7%
Actual tax you owe on the bonus
| Federal tax | $2,050 |
| Provincial tax | $1,124 |
| CPP | $0 |
| EI | $0 |
| Total deductions | $3,174 |
| You keep | $6,826 |
A bonus is taxed at your marginal rate, like extra salary. We compute tax on (salary + bonus) minus tax on salary, exactly the CRA bonus method.
What your employer withholds
Your employer withholds tax on bonuses with this same marginal method, so the bonus cheque should land close to the number above. Small differences (TD1 claim codes, other income, timing) get settled when you file. (The 10%/20%/30% 'lump-sum rates' you may have heard of are for retiring allowances, not bonuses.)
Make your take-home work harder
Your paycheque is only half the story. These are the account types Canadians use to put after-tax money to work. What follows is factual information, not financial advice.
High-interest savings account
A savings account that pays a higher rate than a chequing account. Money stays liquid and earns interest while you keep it.
Partner offers coming soon
Investment account
An account for buying investments such as ETFs and stocks. It can be registered (TFSA, RRSP, FHSA) or non-registered.
Partner offers coming soon
Bank account
A chequing account for daily spending and bill payments, often bundled with savings and credit products.
Partner offers coming soon
We are reviewing Canadian providers. When offers appear here, they will be clearly labelled.
Disclosure: if partner offers are listed here in the future, they will be clearly labelled, and we may earn a commission. Account descriptions are factual information, not financial advice.
More calculators
Worked examples: Ontario, 2026
| Salary | Bonus | Income tax | You keep |
|---|---|---|---|
| $75,000 | $10,000 | $2,846 | $6,754 |
| $100,000 | $10,000 | $3,174 | $6,826 |
| $150,000 | $10,000 | $4,479 | $5,521 |
| $100,000 | $25,000 | $9,034 | $15,966 |
2026 tax tables · verified 2026-09-20 · how we calculate
FAQ
How much tax do I pay on a $10,000 bonus in Ontario?
In 2026, on a $100,000 salary in Ontario, a $10,000 bonus costs $3,174 in income tax ($2,050 federal + $1,124 provincial): no CPP or EI, since both are already maxed out at that salary. You keep $6,826.
Why is my bonus taxed at 40%?
It isn't: a bonus is taxed exactly like salary, at your marginal rate (31.7% on this $10,000 bonus, or $3,174). What looks like 40% is usually CPP/EI still being deducted because you haven't hit the annual maximums yet, or just the shock of seeing one big deduction instead of it spread across paycheques.
How does bonus withholding work in Canada?
Your employer withholds tax on a bonus with the CRA bonus method: tax on your total annual income including the bonus, minus tax without it. It's the same math as your final tax bill, not a separate flat rate. (The 10%/20%/30% 'lump-sum rates' you see quoted online are for retiring allowances and RRSP withdrawals, not salary bonuses.)
Do I pay CPP and EI on my bonus in Canada?
Yes: bonuses are pensionable and insurable earnings, up to the yearly maximums ($74,600 for CPP and $68,900 for EI in 2026). On a $75,000 salary with a $5,000 bonus, that's $200 CPP and $0 EI on the bonus. Earn over the maximums and no CPP/EI applies, like the $150,000 example, where a $25,000 bonus keeps $13,775 after $11,225 income tax.
Will I get bonus tax back at tax time?
Usually there's no big surprise either way: your employer withholds with the same marginal method used to compute your final tax. Small differences (your TD1 claim amount, other income, RRSP contributions) get settled when you file, as a small refund or a small balance owing.
How are bonuses taxed in Quebec?
In Quebec, Revenu Québec withholds provincial tax on bonuses at your marginal rate (the same difference method), and the federal portion uses the CRA bonus method with the 16.5% abatement. On a $100,000 salary with a $10,000 bonus in Quebec, you keep 6 367 $ after 3 620 $ income tax. See the full French calculator at https://aftertaxcanada.ca/calculateur-impot-boni/.
What is a bonus pay calculator?
A bonus pay calculator estimates how much of your bonus pay you actually keep after tax. Enter your salary and bonus, pick your province, and it applies the CRA bonus method: tax on (salary + bonus) minus tax on salary alone, to show income tax, CPP/EI, and your take-home from the bonus.
How is a one-time bonus taxed in Canada?
A one-time bonus is taxed exactly like regular salary: at your marginal income tax rate, plus CPP and EI up to the annual maximums. There is no special flat "bonus tax rate": on a $100,000 Ontario salary, a $10,000 one-time bonus keeps $6,826 after $3,174 income tax.