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Canada Bonus Tax Calculator

Calculate how much tax you will pay on a bonus in Australia using the marginal tax method for 2025-26.

Regional Rule Context

JurisdictionCanada
CurrencyCA$ (CAD)
Effective fromJan 1, 2025
Version1.0
Last reviewedMar 1, 2026
Next reviewJul 1, 2026
Source: Canada Revenue Agency (CRA)

Canada Rates and Rules

Minimum Wage (Federal)CA$17.3/hr
CPP Rate (Employee)5.95%
EI Rate (Employee)1.64%
Basic Personal Amount$16,129
CPP Max Earnings$71,300
EI Max Insurable$65,700
Standard Hours40hrs/week

Federal Tax Brackets

$0 - $57,37515%
$57,376 - $114,75020.5%
$114,751 - $158,46826%
$158,469 - $220,00029%
$220,001+33%

Enter Values

Your regular annual salary (excluding the bonus)

Result

Enter values above and click Calculate to see your result.

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Estimate the tax on a bonus payment in Canada. Uses the periodic method where bonus is added to salary and the marginal tax difference is calculated.

Disclaimer: This calculator uses publicly available rules effective as of Jan 1, 2025 (version 1.0). Results are for informational purposes only. Always verify with official sources or a qualified professional. Last reviewed: Mar 1, 2026.

Formula

Bonus Tax = Tax(Salary + Bonus) - Tax(Salary)

The ATO taxes bonuses at your marginal rate. The tax on a bonus is the difference between your total tax with the bonus and your tax without it.

Canada FAQs

How are bonuses taxed in Canada?

Bonuses are taxed as regular income. Your employer may withhold at a flat rate or add it to your regular pay and withhold at the combined marginal rate.

Will I get some bonus tax back?

If your employer withheld at a higher rate than your actual marginal rate, you may receive a refund when you file your tax return.

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