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Commission tax calculator (2026)
Commission is employment income, so it stacks on top of your base salary and is taxed at your highest marginal rates. Enter your base salary and commission to see exactly what you keep from the commission in every province.
Ontario · 2026
$12,963$12,963 kept from $20,000 of commission
You keep 64.8% of the commission · $1,080 a month
Tax on the commission
| Federal tax | $3,904 |
| Provincial tax | $1,903 |
| CPP contributions | $1,085 |
| EI premiums | $145 |
| Total deductions on the commission | $7,037 |
| You keep | $12,963 |
Your commission is added to your base salary, so it is taxed at your highest marginal rates, not at the low rates that applied to your first dollars. CPP/QPP, EI and QPIP are capped once on your combined income: once a cap is reached at your base salary, no more of that deduction comes off the commission.
How commission is taxed
The calculator compares your total deductions with and without the commission, using the 2026 brackets and credits. These are annual figures for commission earned as an employee on top of a base salary. Your employer will usually still deduct CPP and EI from each cheque. If your combined contributions pass the annual maximums, the CRA credits you for the excess when you file your tax return, so the annual result already reflects each cap once.
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.
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Investment account
An account for buying investments such as ETFs and stocks. It can be registered (TFSA, RRSP, FHSA) or non-registered.
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Bank account
A chequing account for daily spending and bill payments, often bundled with savings and credit products.
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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.
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Worked examples, commission in 2026
| Base salary and commission | Deductions on the commission | You keep | Keep rate |
|---|---|---|---|
| $60,000 salary · $20,000 commission · ON | $7,037 | $12,963 | 64.8% |
| $60,000 salary · $20,000 commission · QC | $8,192 | $11,808 | 59.0% |
| $50,000 salary · $15,000 commission · BC | $4,530 | $10,470 | 69.8% |
| $80,000 salary · $25,000 commission · AB | $7,764 | $17,236 | 68.9% |
Annual figures, caps applied once to combined income · 2026 tax tables · verified 2026-09-20 · how we calculate
FAQ
How much tax do I pay on $20,000 of commission in Ontario?
With a $60,000 base salary, $20,000 of commission in Ontario in 2026 means $7,037 of tax and payroll deductions and you keep $12,963 of the commission. The effective rate on the commission is 35.2%. The commission is taxed on top of your salary, at your highest marginal rates.
Is commission taxed at a higher rate than salary in Canada?
No, the rates are the same. Commission paid by an employer is employment income, taxed at the same federal and provincial rates as salary. What makes it feel higher is stacking: your base salary already uses up the low brackets and the basic credits, so every commission dollar is taxed at the marginal rates that apply above your salary, not at the average rate on your whole pay.
Do I pay CPP and EI on commission in Canada?
Yes, when commission is employment income. CPP/QPP and EI apply to commission just as they do to salary, with the annual caps applied once to your combined income. On a $60,000 base salary plus $20,000 of commission in Ontario, the commission portion carries $1,085 of CPP and $145 of EI. Once a cap is reached at your base salary, no more of that deduction comes off the commission.
How much tax on $20,000 of commission in Quebec?
With a $60,000 base salary, $20,000 of commission in Quebec in 2026 means $8,192 of tax and payroll deductions and you keep $11,808 of the commission. The effective rate is 41.0%, higher than in Ontario because Quebec's provincial income tax rates are higher at these incomes, and Quebec adds QPP and QPIP on top of federal tax.
How much tax on $25,000 of commission in Alberta?
With an $80,000 base salary, $25,000 of commission in Alberta in 2026 means $7,764 of tax and payroll deductions and you keep $17,236 of the commission. EI is already maxed out at an $80,000 base salary, so no EI comes off the commission, and only $200 of CPP remains before that cap is reached.
Why is my commission cheque taxed so much?
Withholding on a single cheque can look heavier than the annual result. Your employer withholds tax and payroll deductions from each cheque, and a large commission cheque can be withheld at a rate that assumes that pay level all year. The figures here are the annual outcome: the tax the commission actually costs once your whole year's income is counted. Any over-withholding comes back as a refund when you file your tax return.
Is commission taxed differently if I am self-employed?
Yes, in how it is collected. This calculator assumes commission earned as an employee, on top of a base salary, with an employer withholding tax and payroll deductions. Commission earned as self-employment income is business income: no employer withholds from it, and CPP and QPIP are paid at both the employee and employer shares when you file. Use the self-employed calculator for that case.