Canada Bonus Tax Calculator (2025)
Income tax, CPP and EI on a bonus at your marginal rate, plus your net take-home.
Uses the CRA bonus method: the bonus is taxed at your marginal rate (the extra tax from adding it to your salary), plus CPP and EI where you are still below the annual caps. Withholding on your pay stub may differ from your final tax, which is settled when you file.
The CRA bonus method
Unlike some countries with a flat supplemental-wage rate, Canada taxes a bonus at your marginal rate. The CRA bonus method works by comparing the tax on your salary alone with the tax on your salary plus the bonus — the difference is the tax on the bonus. The same differencing handles CPP and EI, which stop once you hit the annual caps.
2025 contribution caps that affect a bonus
| Contribution | Rate | Stops at annual earnings of |
|---|---|---|
| CPP (base) | 5.95% | $71,300 (YMPE) |
| EI (employee) | 1.64% | $65,700 (max insurable) |
Estimates for 2025 and not tax advice. Actual employer withholding may use a simplified method and differ from this result.
Frequently Asked Questions
- How is a bonus taxed in Canada?
- A bonus is ordinary employment income. The CRA bonus method adds the bonus to your expected annual salary and withholds tax on it at the resulting marginal rate, plus CPP and EI if you are still under the annual caps.
- Why does my salary affect the bonus tax?
- Your bonus stacks on top of your salary, so it is taxed in your highest brackets. Entering your salary lets the calculator find the correct marginal rate and detect bracket crossings.
- Are CPP and EI taken from a bonus?
- Yes, until you reach the annual maximums ($71,300 pensionable for CPP, $65,700 insurable for EI). If your salary alone already hits those caps, no further CPP or EI is taken from the bonus.
- Is the tax withheld the same as my final tax?
- Not necessarily. Withholding is an estimate; your actual tax is settled when you file your return. If too much was withheld, you receive a refund.
- Which provinces are supported?
- Ontario, British Columbia, Alberta and Quebec. Quebec figures are approximate (they exclude the Quebec abatement and surtaxes).
📅 Last updated: June 2026 · Formulas follow standard banking / tax conventions · Results are for reference only.