Got a $5,000 bonus and an $80,000 salary in Ontario? You keep $3,376.80 of it. Income tax takes $1,423.20 and CPP takes $200, so 32.5% of the bonus never reaches you.
Why does a bonus feel taxed so hard?
Because it sits on top of everything else you earned. A bonus doesn’t get its own tax rate. It’s added to your pay for the year, and the extra income lands on your highest tax steps. The calculator works out your net pay for the year with the bonus and without it, then shows the gap. That gap is what you really keep.
Your employer may hold back more or less on the pay date, and that’s fine, since the final tax is settled when you file, so the stub is a guess and your return is the answer. What you lose is close to your top combined rate, plus any contribution still due. Near the CPP limits the mix shifts. A bonus that pushes your yearly pay past $74,600 pays the second-tier rate on the part above that line.
Which rates apply to the extra income?
| Item | 2026 figure |
|---|---|
| Federal rate, $58,523 to $117,045 | 20.5% |
| Federal rate, $117,045 to $181,440 | 26% |
| CPP, first tier | 5.95% until pay reaches $74,600 |
| CPP, second tier | 4% from $74,600 to $85,000 |
| EI outside Quebec | 1.63% until pay reaches $68,900 |
What does a $5,000 bonus leave in Ontario?
Start with the default case, an $80,000 salary. The calculator shows $1,423.20 more income tax and $200.00 more CPP. EI adds nothing, because the salary already passes the $68,900 limit. You keep $3,376.80.
Change the province and the answer moves. The same bonus leaves $3,336.00 in Alberta. In Quebec it leaves $3,050.38, because QPP, QPIP and EI add $221.50 and the tax is higher.
Pay level matters more than place.
On a $45,000 salary you keep $3,590.70, and 28.2% goes to tax and contributions. On $150,000 you keep $2,769.10, and 44.6% is gone. Size counts as well: a $10,000 bonus on $80,000 leaves $6,894.30, and $20,000 leaves $13,903.51.
Can you keep more of a bonus?
One way is an RRSP. A contribution lowers your taxable income, so the tax drops at the same rate the bonus would have been taxed. The RRSP calculator shows how that saving grows over the years. Ask your employer whether part of the bonus can go straight into your plan, since some workplaces allow it.
What this calculator leaves out
- A big tax line on the pay stub isn’t the final tax. A refund can follow when you file.
- It assumes one bonus in a year with steady pay, so changes in salary during the year aren’t modelled.
- Only the basic personal amount and the CPP or QPP and EI credits are counted.
- Benefits, union dues and pension payments aren’t deducted.
To see your whole year, open the take-home pay calculator. If you’re weighing a permanent raise instead, the salary increase calculator answers the same question. And for a pay cheque with every deduction listed, there’s the payroll deductions calculator.
Where do these numbers come from?
The 2026 tax brackets and contribution limits come from published federal and provincial data, which we rechecked on 29 September 2026. A few Quebec details are still marked for review, so treat those with care. This website has no connection with the CRA or any other government body.
Frequently asked questions
How much of a $5,000 bonus do I keep in Ontario?
On an $80,000 salary you keep $3,376.80. Tax takes $1,423.20 and CPP takes $200.
Is a bonus taxed at a higher rate?
Not by a special rate. It's extra income on top of your salary, so it lands on your top steps, and your final tax is set when you file.
Why does my pay stub show more tax than the calculator?
Your employer may hold back more on the pay date. If too much was withheld, the difference comes back as a refund.
Do lower earners keep more of a bonus?
Yes. From a $5,000 bonus you keep $3,590.70 on a $45,000 salary and $2,769.10 on $150,000.
Can I cut the tax on a bonus?
An RRSP contribution lowers your taxable income. Ask whether your employer can pay part of the bonus straight into your plan.
Sources and updates
Updated: . How we check rates · Editorial team · Updates
Estimate only. These figures are a planning estimate, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns, and we don't offer tax, legal or accounting services. We have no connection with the Canada Revenue Agency, Revenu Québec or any provincial government. Your real amounts depend on details this tool cannot see, so confirm them with an official source or a qualified professional before you act.