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A $5,000 bonus on top of an $85,000 salary in Ontario leaves you $3,517 in 2026, which is 70.3% of the bonus. The other $1,483 is income tax. No CPP or EI comes off it, because a salary of $85,000 already uses both yearly maximums. This is an estimate with basic credits only.
How much of a $5,000 bonus do you keep at $85,000?
You keep about $3,517 once the year is settled. Before the bonus, take-home on the $85,000 salary is $63,679. With the bonus, pay is $90,000 and take-home is $67,197, so the bonus adds $3,517 to the year. Other bonus sizes keep the same proportion.
| Bonus | Kept after tax | Lost to income tax | Share kept |
|---|---|---|---|
| $1,000 | $704 | $296 | 70.4% |
| $2,500 | $1,759 | $741 | 70.4% |
| $5,000 | $3,517 | $1,483 | 70.3% |
| $10,000 | $7,035 | $2,965 | 70.3% |
The share is the same at every size because the whole bonus is taxed at one combined rate, which the next section explains.
Why does no CPP or EI come off this bonus?
Because both are already at their yearly limit. Employee CPP at $85,000 is $4,646, made up of the base plan on pay up to $74,600 and the second tier up to $85,000. EI stops at $1,123, reached on the first $68,900 of pay. Anything earned above those ceilings adds nothing more to either.
That leaves only income tax. Of the $5,000, $1,025 goes to federal tax at 20.5% and $458 to Ontario at 9.15%, a combined 29.65%. The bonus does not reach the Ontario surtax range, and the Ontario Health Premium has already reached $750 at this pay.
Why does the bonus cheque look smaller than the 70% you keep?
Payroll deducts income tax from a bonus right away, and the amount withheld can be different from the final tax on that bonus. The CRA’s employer guide says CPP, EI and income tax come off bonuses, and the withholding method depends on how the bonus is paid. A bonus paid in a separate cheque can be withheld at a different rate than one added to regular pay, so the deposit may look thin.
That gap is a prepayment. The tax actually owed is worked out when you file your return, and any over-withholding comes back as part of your refund. If the bonus is paid early in the year, before CPP and EI have hit their ceilings, those two also come off it, but you pay correspondingly less on later pay, so the year-end total is the same. The details are in the Canada Revenue Agency: Employers’ guide, payroll deductions and remittances. The bonus tax calculator works through your own numbers.
What if the bonus goes into an RRSP instead?
If the whole $5,000 is paid into your RRSP through payroll, income tax on the year does not change and your take-home stays at $63,679, while $5,000 goes into the plan. Sending only half, $2,500, raises cash by $1,759 and puts $2,500 into the plan.
The trade-off is that RRSP money is taxable when you take it out, and you need room: the limit is 18% of last year’s earned income up to $33,810 for 2026. The 2027 limit is $35,390. Ask payroll whether it can send part of the bonus straight to your RRSP, since an employer that does can sometimes withhold less tax up front. For the tax rules see the Canada Revenue Agency: RRSP, PRPP and TFSA limits.
How does the same bonus compare at $60,000, $110,000 and in other provinces?
At a $60,000 salary a $5,000 bonus keeps $3,216, since CPP and EI still apply to part of it. At $110,000 it keeps $3,305, because the rate on the next dollar is higher. At $85,000 the same bonus keeps $3,517, the best of the three, as payroll deductions have stopped and the higher bracket has not begun.
Province matters too. Out of the same $5,000 on an $85,000 salary, a worker in British Columbia keeps $3,590, in Alberta $3,475 and in Quebec $3,178. These are engine estimates.
Is a $5,000 bonus the same as a $5,000 raise?
For one year, at this pay, yes. A $5,000 raise to $90,000 keeps the same $3,517 a year, which is $293 a month or $135 on each biweekly cheque. The difference is that a raise repeats every year and shows up in every pay stub, while a bonus arrives once and can disappear next year. Check whether any plan tied to your salary counts bonus pay before you rely on it. The salary increase calculator runs the raise version, and the marginal tax rates article explains why the next dollar is taxed at the top rate of your bracket.
What could change the result?
Timing, other income, deductions and your TD1 all matter. A bonus paid in December 2026 is part of your 2026 income, and one paid in January 2027 is part of 2027. The 2027 brackets, the basic personal amount and the CPP limits are not published yet, so next year’s kept share can’t be stated yet. Union dues, a pension plan or a group RRSP match can also shift the numbers, as can a second source of income. For reading your pay stub in more detail, see an $85,000 salary in Ontario and the CPP limits on the Canada Revenue Agency: CPP contribution rates and maximums.
Where does this information come from?
Tax rates, the CPP and EI limits, the RRSP limits and the bonus withholding rules come from the Canada Revenue Agency; the bonus figures are estimates from this site’s own pay engine for an Ontario employee with basic credits only, as of October 2026. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
How much tax is taken from a $5,000 bonus in Ontario?
At an $85,000 salary the income tax on the bonus works out to $1,483, about 29.7%, leaving $3,517. Your payroll may withhold more or less at the time of payment, but the final amount is settled when you file.
Is a bonus taxed at a higher rate than salary?
The final tax rate on it is the same as on any other income at that level, 29.65% here. It can look higher because employers often withhold more on a separate bonus cheque, and any excess comes back as a refund.
Do I pay CPP and EI on a bonus?
Yes, until you reach the yearly maximums. At an $85,000 salary both are already maxed at $4,646 for CPP and $1,123 for EI, so none comes off the bonus. At lower pay, part of it can.
Can I put my bonus into an RRSP to avoid tax?
Contributing it to an RRSP defers the tax, since the deduction cancels the income. Withdrawals are taxed later. You need unused contribution room, and the 2026 limit is $33,810.
Does the year the bonus is paid matter?
Yes. A bonus paid in December 2026 counts toward the 2026 tax year, and one paid in January 2027 counts toward 2027. The 2027 brackets are not published yet.
All payroll and salary calculators
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill
- Ontario income tax and sales tax in 2026
How Ontario income tax works in 2026: the five brackets, the surtax and health premium, the 13% HST, and the calculators that switch to Ontario