After Tax Canada / Bonus tax calculator / Ontario
Bonus tax calculator Ontario (2026)
This bonus pay calculator shows what you keep from a bonus in Ontario — a one-time bonus is 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.)
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 | $4,238 | $5,762 |
| $100,000 | $25,000 | $8,811 | $16,189 |
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 (31.7% marginal rate) — no CPP or EI where both are already maxed out at that salary. You keep $6,826.
How does bonus withholding work in Ontario?+
Your employer withholds tax on a bonus with the the CRA bonus method: tax on your total annual income including the bonus, minus tax without it. It matches your final tax bill — not a separate flat rate. The 10%/20%/30% "lump-sum rates" quoted online are for retiring allowances and RRSP withdrawals, not salary bonuses.
Do I pay CPP and EI on my bonus in Ontario?+
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 in Ontario, that's $200 CPP and $0 EI on the bonus. Earn over the maximums and no CPP/EI applies.
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" in Canada — a $10,000 one-time bonus on a $100,000 Ontario salary keeps $6,826 after $3,174 income tax.