Finance Calc App

Canada Bonus take-home calculator

See how much of a bonus you keep after federal tax and contributions. A bonus is taxed at your marginal rate on top of your salary — this shows the real after-tax amount.

By Mitch Duncan Last reviewed Methodology

Your bonus

Provincial tax not yet included — federal only.

Tax year: 2025 · Source: CRA (canada.ca)

Bonus take-home
$7,811.52
Tax on the bonus
$2,188.48
Breakdown
Gross bonus
$10,000.00
Tax & contributions on bonus
−$2,188.48
You keep
$7,811.52
Effective tax rate on bonus
21.9%
Marginal rate (incl. on bonus)
15.0%
Why your payslip may differ

A bonus is taxed at your marginal federal (and provincial) rate. Employers may use the CRA bonus method or lump it into the period's pay, which can over-withhold in that cheque; it reconciles when you file. CPP and EI may already be maxed for the year, raising your net on the bonus.

A bonus is taxed at your marginal rate — the rate on your top slice of income — so a higher proportion is taken than on your average salary. This estimate uses current brackets and ignores benefits, salary-sacrifice, or pension routing of the bonus, which can reduce the tax.

Want the full picture? Overtime and Bonus Pay Explained →

How a bonus is taxed in Canada

A bonus is taxed at your marginal rate — combined federal and provincial — on top of your salary. Employers can withhold using the CRA's bonus method (which annualises the bonus to estimate the right rate) or simply add it to the period's pay, which often over-withholds in that cheque.

Bonus kept = net(salary + bonus) − net(salary)

CPP and EI may already be maxed

If you've already hit the annual CPP and EI maximums earlier in the year, no further CPP/EI comes off the bonus — so you keep more of it than the headline marginal rate alone suggests. Early in the year, before those caps are reached, CPP and EI do apply.

Defer it into an RRSP

Contributing a bonus to an RRSP (if you have contribution room) deducts it from taxable income at your marginal rate, deferring the tax until withdrawal. Some employers will pay a bonus directly into an RRSP without withholding income tax.

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Frequently asked questions

How is tax on a bonus calculated?
A bonus is taxed at your marginal rate — the rate on your top slice of income — because it stacks on top of your salary. The cleanest way to find what you keep is to compare your take-home pay with the bonus against your take-home without it; the difference is the bonus net of tax. The calculator above does exactly that using current tax brackets.
Why does it feel like my bonus is taxed more than my salary?
Because it's taxed at your marginal rate, not your average rate. Your salary benefits from lower bands and any tax-free allowance first; the bonus sits entirely on top, in your highest band, so a bigger share is taken. It isn't taxed under a special 'bonus tax' — it's just that the whole bonus falls in your top bracket.
Why is the tax on my payslip different from what I actually owe?
Payroll systems often use a special method to withhold tax on one-off payments — a flat supplemental rate, or treating the bonus as if you earned it every pay period. That can take too much or too little in that single cheque. It reconciles when you file your tax return or over the course of the tax year, so the payslip figure isn't your final tax.
Can I reduce the tax on my bonus?
Often yes. Routing some or all of a bonus into a tax-advantaged pension or retirement account can avoid income tax (and sometimes social contributions) on that portion. Timing a bonus into a lower-income year, or using tax-sheltered accounts for what you keep, can also help. The right option depends on your country's rules.
Is take-home from a bonus the same as from regular pay?
No — proportionally you keep less of a bonus than of your base salary, because the bonus is taxed entirely at your marginal rate while your salary is taxed progressively through the lower bands first. That's why the effective rate shown on the bonus is higher than your overall effective tax rate.
Does a bonus push me into a higher tax bracket?
It can push part of your income into a higher band, but only the portion above the threshold is taxed at the higher rate — the rest of your income is unaffected. A bonus never reduces your overall take-home; you always keep some of it. In some systems, though, a bonus can trigger allowance withdrawal or extra repayments, which the calculator's regional notes flag.

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