# Bonus Tax Calculator for Canada: What You Keep

> See what a bonus pays after tax: enter your salary and bonus to get the extra income tax and CPP for any province or territory

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 |

The federal steps come from the CRA's [income tax rates and brackets page](https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/canadian-income-tax-rates-individuals-current-previous-years/current-year.html).

## 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 a bonus push you into a higher bracket?

Part of it can. Say Jess earns $55,000 and gets a $5,000 bonus, which takes her to $60,000. The first $3,523 of the bonus still fits under the $58,523 line and is taxed federally at 14%. The other $1,477 crosses it and is taxed at 20.5%. Only the part above the line pays the higher rate, not her whole income. CPP and EI add another $379 on that bonus, since 5.95% plus 1.63% of $5,000 is $379.00.

## 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. Put the whole $5,000 from our example into an RRSP, and the extra income tax on it, $1,423.20, roughly cancels out, as long as you have room. The $200 of CPP still comes off, and the money stays tied up until you withdraw it and pay tax then. The [RRSP calculator](https://tax-services.ca/calculators/rrsp-retirement/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. If you contribute on your own instead, the CRA lets you request less tax withheld on your pay through Form T1213, described on its page about [increasing or reducing income tax deducted at source](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/set-up-new-employee/increase-reduce-income-tax-deducted-source.html).

## 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](https://tax-services.ca/calculators/payroll-salary/take-home-pay-calculator). If you're weighing a permanent raise instead, the [salary increase calculator](https://tax-services.ca/calculators/payroll-salary/salary-increase) answers the same question. And for a pay cheque with every deduction listed, there's the [payroll deductions calculator](https://tax-services.ca/calculators/payroll-salary/payroll-deductions-calculator).

## Where we got these figures

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. No level of government runs or endorses this site.

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Source: https://tax-services.ca/calculators/payroll-salary/bonus-tax
Last updated: 2026-10-08
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer