After Tax Canada / Overtime payVersion française
Overtime pay calculator (2026)
There is no special overtime tax rate in Canada, overtime is taxed at your marginal rate, like extra salary. Enter your hourly wage, overtime hours per week and multiplier to see what each extra hour actually adds to your take-home, for every province.
Ontario · 2026
$7,444$7,444 extra take-home per year from $11,700 of overtime
Effective rate on the overtime: 36.4%
Where your overtime goes
| Gross overtime | $11,700 |
| Federal tax | $2,279 |
| Provincial tax | $1,175 |
| CPP | $696 |
| EI | $106 |
| Total deductions | $4,256 |
| You keep | $7,444 |
Overtime is taxed at your marginal rate, like extra salary. We compute annual tax on (base + overtime) minus annual tax on the base, so CPP/QPP and EI/QPIP only apply to the room your regular hours leave.
Per pay period
| Period | Gross | Take-home |
|---|---|---|
| Per week | $225 | $143 |
| Per month | $975 | $620 |
Same year, different rhythm: weekly and monthly figures are just the annual overtime split by 52 or 12.
Based on a full-time base of $62,400 (40 h/week)
No special overtime tax rate
In Canada there is no special overtime tax rate. Overtime is taxed at your marginal rate, exactly like extra salary. If an overtime cheque looks heavily taxed, that is usually the employer's CRA payroll-table withholding on that cheque, not a different tax rate, the annual total settles when you file.
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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More calculators
Worked examples: overtime at 1.5× and 2.0×, 2026
| Wage · hours/week | Gross overtime | You keep | Effective rate |
|---|---|---|---|
| $30/h · 5h · 1.5× · ON | $11,700 | $7,444 | 36.4% |
| $30/h · 5h · 1.5× · QC | $11,700 | $6,831 | 41.6% |
| $30/h · 5h · 1.5× · BC | $11,700 | $7,766 | 33.6% |
| $40/h · 8h · 2× · ON | $33,280 | $22,794 | 31.5% |
Annual figures · 2026 tax tables · verified 2026-09-20 · how we calculate
FAQ
Is overtime taxed more than regular pay in Canada?
No. Canada has no special overtime tax rate. Overtime is ordinary employment income taxed at your marginal rate, exactly like extra salary. At $30/hour with 5 overtime hours a week (1.5×) in Ontario in 2026, the overtime grosses $11,700 a year and you keep $7,444 after tax, CPP and EI, a 36.4% effective rate, not a penalty rate. If one overtime cheque looks heavily taxed, that is usually the CRA payroll-table withholding on that cheque; the annual total settles when you file.
How much overtime do I keep at $30 an hour in Ontario?
With 5 overtime hours a week at time and a half, you gross $11,700 a year in overtime and keep $7,444, that's $143 extra take-home per week. The deductions are $3,454 in income tax, $696 in CPP and $106 in EI, computed on 2026 tax tables.
How are overtime hours taxed in Quebec?
The same marginal method applies, under Quebec's tax system: overtime grosses $11,700 a year at $30/hour × 5 hours/week (1.5×), and you keep $6,831 after federal and Quebec income tax plus QPP, EI and QPIP ($50 in QPIP). That's a 41.6% effective rate in 2026.
Do I pay CPP and EI on overtime?
Yes. Overtime is pensionable and insurable earnings, so CPP/QPP and EI/QPIP apply, but only on the annual room your regular salary leaves before the yearly maximums. A higher base salary can leave little or no CPP/EI room, which is why two workers with the same overtime hours can keep different amounts. The calculator handles this automatically.
Is overtime worth it after tax?
Overtime usually adds take-home at your marginal rate, not half of it. On $30/hour with 5 hours a week at 1.5× in British Columbia, the overtime is worth $149 a week in take-home ($7,766 a year), a 33.6% effective rate. The exact rate depends on your wage, hours and province; this calculator shows your number.
How is weekend double-time overtime taxed?
The same way as any overtime, just a bigger gross. At $40/hour with 8 weekend hours at double time (2.0×) in Ontario, the overtime grosses $33,280 a year and you keep $22,794, $438 a week in extra take-home. Because the base salary is already higher, the effective rate is 31.5% in 2026.
How is overtime pay calculated from an hourly wage?
Annual overtime gross is your hourly wage × the overtime multiplier × overtime hours per week × 52 weeks. Tax is computed with the marginal-difference method: annual tax on (base salary + overtime) minus annual tax on the base salary alone, where the base is your wage × 2,080 hours (40 h/week). See the methodology page for the full 2026 tables and formulas.