Bonus Tax Calculator
Calculate the tax withheld on a one-off bonus payment and your net take-home amount after federal tax, provincial tax, CPP, and EI deductions.
Bonus Details
Bonus Tax Summary
Effective Rate on Bonus
37.0%
Combined Marginal Rate
30.0%
How it works: CRA treats bonuses as lump-sum payments. Tax is calculated as the incremental income tax on salary + bonus versus salary alone. CPP and EI are also deducted on the bonus amount, subject to annual maximums. Quebec residents pay a lower EI rate (QPIP applies separately).
How Bonus Tax Works in Canada
The CRA treats bonuses as lump-sum payments. Your employer calculates the incremental income tax by comparing your total income (salary + bonus) against your salary alone. The difference is the tax withheld on the bonus.
CPP contributions: CPP is deducted on the bonus if you haven't reached the Year's Maximum Pensionable Earnings (YMPE). CPP2 (enhanced) applies on earnings between the YMPE and the second ceiling.
Employment Insurance: EI premiums apply on the bonus up to the maximum insurable earnings. Quebec residents pay a lower EI rate because they contribute to QPIP separately.