Tax year 2026
How much of a bonus will I keep?
A bonus is not taxed at a special rate. This works out the tax on it properly, as the difference between a year with the bonus and a year without.
A year, before the bonus.
Before deductions.
What you keep of the bonus
$6,950
of a $10,000 bonus, after 30.5% in tax and contributions.
| Extra income tax | $3,050.00 |
|---|---|
| Extra contributions | $0.00 |
| Net bonus | $6,950.00 |
| Effective rate on the bonus | 30.5% |
| Total income after the bonus | $100,000.00 |
| Effective tax rate before | 18.6% |
| Effective tax rate after | 19.8% |
This is not the bonus multiplied by a tax rate. The calculator works out the tax on a full year with the bonus and on a full year without it, and reports the difference. That matters when a bonus straddles a bracket, and it matters more when it pushes earnings past the pension ceiling: past that point the bonus attracts no further CPP at all. That is what has happened here, which is why the extra contributions are nil.
Your employer may withhold more than this from the bonus itself. Withholding is a prepayment, not the final bill, and the difference is settled when you file.
What this assumes
The figures are estimates of payroll deductions for employment income, worked out on the basic personal claim. They do not know about other credits you claimed on your TD1, and they do not cover self-employment, dividends or investment income. The methodology sets out every assumption and where these estimates stop being reliable.
Sources
- Current year tax rates and income brackets (2026) · Canada Revenue Agency · checked
- CPP contribution rates, maximums and exemptions, 2026 · Canada Revenue Agency · checked
- Canada Employment Insurance Commission sets the 2026 Employment Insurance premium rate · Employment and Social Development Canada · checked