How Year-End Bonuses Are Taxed in Canada

Getting a holiday bonus? Here's how the CRA treats lump-sum payments and why tax seems so high.

PayrollBuddy forecasts Canadian take-home pay using published 2026 federal and provincial payroll formulas. All figures are estimates, not payroll, tax, legal or financial advice. PayrollBuddy does not advance wages and does not lend money, and is not affiliated with the Canada Revenue Agency.