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Bonus Tax Calculator Canada 2026
Free bonus tax calculator for Canada 2026: federal and provincial tax, CPP and EI on a bonus using the CRA bonus method, for every province and territory except Quebec.
Your pay and bonus
Bonus after tax
$3,140
| Bonus | $5,000 |
| Federal tax | $980 |
| Provincial tax | $590 |
| CPP | $290 |
| EI | $0 |
| Total deducted | $1,860 (37.2%) |
How it's worked out
- Your employer works out your yearly tax with and without the bonus (the CRA bonus method, T4127).
- The difference is the tax taken from the bonus, so it's taxed at your top federal and provincial rate.
- 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. 🔒 Everything stays on your device.
✅ Rules last checked:
📚 Official sources: CRA T4127 payroll formulas · 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.
🛠️ Spotted a mistake or an out-of-date rule? Tell us
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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).