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$1,000 Bonus After Tax in Canada (2026)

How much of a $1,000 bonus you keep in 2026: in Ontario on $75,000, $325 is deducted and you keep $675. Table for six salaries.

Your pay and bonus

Bonus after tax

$656

Bonus$1,000
Federal tax$196
Provincial tax$88
CPP$60
EI$0
Total deducted$344 (34.4%)

How it's worked out

  1. Your employer works out your yearly tax with and without the bonus (the CRA bonus method, T4127).
  2. The difference is the tax taken from the bonus, so it's taxed at your top federal and provincial rate.
  3. CPP and EI come on top, up to the year's maximums.

2026 rules last checked October 2026. Claim code 1, no other income or RRSP. Quebec not included. Not legal, tax or financial advice. ๐Ÿ”’ Everything stays on your device.

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๐Ÿ“š Official sources: CRA T4127 payroll formulas ยท T4127 Chapter 4: bonus formula

We build every tool from the official rules and re-check them when they change. Always confirm with the official source before you rely on a result.

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Answer: in Ontario on a $75,000 salary, a $1,000 bonus loses $285 to income tax and $40 to CPP and EI, so you keep $675 (32% deducted).

SalaryTaxCPP + EIYou keep
$45,000$176$76$748
$60,000$281$76$643
$75,000$285$40$675
$100,000$315$0$685
$130,000$412$0$588
$180,000$425$0$575

Ontario, 2026, CRA bonus method (T4127), claim code 1. Pick your province in the calculator.

Questions people ask

How is a bonus taxed in Canada?+

As normal employment income. The employer works out your yearly tax with and without the bonus and deducts the difference, so it's taxed at your top federal and provincial rate, plus CPP and EI.

How much tax is taken from a $2,000 bonus?+

In Ontario on a $75,000 salary, about $649 in total, so you keep $1,351.

Can I avoid tax on my bonus?+

Ask your employer to pay it straight into your RRSP. Then no income tax is deducted on that part (CPP and EI still apply).

Bonus after tax

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