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Bonus Tax Calculator (2026)

A bonus or severance payment is taxed on top of your regular income, so it's taxed at your highest (marginal) rate. Enter your salary and bonus to see what you'll actually keep.

2026 rates — verified . Estimates income tax plus CPP/EI on the bonus; excludes other credits. Payroll withholding on a one-time payment can differ and is often reconciled at tax time. Verify with the CRA.

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Province / territory

Annual base salaryYour regular income, before the bonus.

Bonus / severance amountThe one-time payment.

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You keep

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Deducted

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Effective rate on bonus

Bonus amount	–
Income tax on bonus	–
CPP + EI on bonus	–
Net bonus	–

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Why bonuses feel so heavily taxed

Your bonus stacks on top of your salary, so every dollar is taxed at your marginal rate — the rate on your top income. That's why a $10,000 bonus can feel like it "lost half" even if your average tax rate is much lower. Payroll often withholds extra on a lump sum, but any over-withholding comes back as a refund at tax time.

Can I lower the tax?

Directing some or all of a bonus straight into an RRSP can defer the tax — the contribution is deducted from income. Ask your employer about contributing a bonus to a group RRSP before it's taxed.

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