Find out exactly how much of your Canadian bonus you'll actually take home — including federal tax, provincial tax, CPP, and EI deductions. No surprises on payday.
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Your bonus is taxed at your marginal rate — not a flat rate
A common myth is that bonuses are taxed at 50% in Canada. The truth: CRA requires employers to withhold tax using the "bonus method" — which taxes your bonus at the rate that applies to your total combined income. This calculator shows your exact amount.
📋 Your Details
$
Your regular gross annual salary before the bonus
$
Gross bonus before any deductions
$
Optional: redirect part of your bonus to RRSP to reduce tax
Your regular pay frequency (for CPP/EI calculation)
💵 Your Bonus Take-Home Amount
$0
After all taxes and deductions
Gross Bonus
$0
Total Tax
$0
Effective Rate on Bonus
0%
Marginal Rate
0%
Gross Bonus
$0
Before deductions
Income Tax on Bonus
$0
Fed + provincial
CPP on Bonus
$0
If not yet at annual max
EI on Bonus
$0
If not yet at annual max
Take-Home Amount
$0
Net bonus received
RRSP Tax Savings
$0
If contributing to RRSP
✅ Good news: Your employer may withhold more than this estimate. If they over-withhold, you'll get the difference back as a tax refund when you file your return in April/May. This calculator shows your true tax owing — not necessarily what gets withheld on your paycheque.
🇨🇦 Federal Tax on Bonus
Salary federal tax$0
Combined income federal tax$0
Federal Tax on Bonus$0
Federal Marginal Rate0%
🏛️ Provincial Tax on Bonus
Salary provincial tax$0
Combined income prov. tax$0
Provincial Tax on Bonus$0
Provincial Marginal Rate0%
📊 Where Your Bonus Goes
🇨🇦 2026 Federal Tax Brackets — How Your Bonus Is Taxed
💡 Bonus + RRSP Strategy
Contributing part of your bonus directly to your RRSP is one of the most effective tax strategies for Canadians. Here's what happens at different contribution levels:
💡 Bonus Tax Tips for Canadians
📋 The Bonus Method Explained
CRA's "bonus method": your employer calculates how much tax you'd pay on (salary + bonus) annually, subtracts what you'd pay on salary alone, and withholds that difference from your bonus. This is the correct method.
🏦 Direct RRSP Contribution
Ask your employer to send part of your bonus directly to your RRSP before tax is calculated. This reduces the withheld amount and is completely legal — it's called a direct RRSP contribution from employment income.
📅 Timing Your Bonus
If you expect a lower income year (mat leave, sabbatical, job change), ask if your bonus can be paid in that year instead. Lower income = lower marginal rate = less tax on the same bonus amount.
💳 Over-Withholding is Common
Many employers withhold a flat 30–47% on bonuses out of caution. If your actual marginal rate is lower, you'll get the difference back as a tax refund. File your return promptly to get it sooner.