Tax year 2026
What is overtime worth after tax?
Overtime is taxed like any other employment income, but a single pay statement can make it look worse than it is. This works out the annual position.
Time and a half is 1.5. Provincial rules set when it starts.
What the overtime adds
$7,055
a year after deductions, from $10,800 of overtime pay. You keep 65.3% of it.
| Regular annual pay | $57,600.00 |
|---|---|
| Overtime annual pay | $10,800.00 |
| Total gross | $68,400.00 |
| Take-home without overtime | $46,019.84 |
| Take-home with overtime | $53,074.46 |
| Kept from the overtime | $7,054.62 |
Overtime is taxed no differently from any other employment income. It can look worse on a single pay statement because withholding treats an unusually large period as though every period were that size, but the year settles when you file. This works out the annual position directly.
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