Bonus Tax Calculator Canada
Find out how much of your bonus you actually keep after tax — 2026 rates, all provinces.
You Keep
$0
Tax on Bonus
$0
Effective Rate on Bonus
0%
How Bonuses Are Taxed in Canada
There is no special “bonus tax” in Canada — a bonus is regular income taxed at your marginal rate. Because it stacks on top of your salary, it is taxed in your highest bracket, which is why the withholding feels heavy.
If your employer withholds more than this estimate, the difference comes back as a refund when you file. Contributing the bonus to your RRSP can defer the tax entirely.
Frequently Asked Questions
Are bonuses taxed at a higher rate in Canada?
No. Bonuses are ordinary income taxed at your marginal rate. They feel heavily taxed because the full amount lands in your top bracket.
Can I avoid tax on my bonus?
You can defer it by directing the bonus into your RRSP (within your contribution room) — many employers can deposit it pre-tax.
Why was so much tax withheld from my bonus?
Employers often use the bonus method or a flat rate for withholding. If too much was taken, you get it back as a refund when you file your return.