Ontario Bonus Calculator

About This Calculator

This Ontario Bonus Calculator estimates how much of a one-off bonus you will take home after federal tax, provincial tax, CPP, and EI. Bonuses in Canada are taxed as regular income. The calculator treats the bonus as additional income on top of your main salary and applies Ontario provincial rates along with federal tax. CPP and EI may apply depending on whether you have already reached the annual maximums from your main job.

How Is Bonus Tax Calculated in Ontario?

Bonuses are treated as taxable employment income. Federal and provincial tax are calculated by adding the bonus to your income and applying the relevant brackets. Ontario provincial rates apply in addition to federal rates.

CPP is deducted if you have not yet reached the YMPE for the year. EI is deducted if you have not reached the maximum insurable earnings. If your main job has already maxed out CPP and EI, your bonus may not incur those deductions—our calculator assumes a standalone bonus for simplicity.

Your employer may withhold tax at a higher rate on bonuses (e.g. 30% federal + provincial) depending on payroll setup. At year-end, the CRA reconciles your total tax. This calculator gives a useful estimate for planning.