Commission Payroll Calculator
Estimate the incremental tax and payroll contributions caused by annual commission income on top of base salary.
Salary and commission
Net commission
$13,230From $20,000 gross
Estimated deductions
$6,77034.0%
Total annual income
$90,000This is a full-year tax-cost estimate for recurring commissions. Your employer's actual cheque withholding can differ under CRA's commission-remuneration method and your TD1X elections.
Planning result versus actual withholding
This tool estimates the full-year tax cost. Payroll may use CRA's periodic commission formula, cumulative payments and TD1X expense elections, so an individual cheque can differ. Your T1 return ultimately reconciles the year.
Frequently asked questions
Is commission taxed at a special tax rate in Canada?
No. Commission is employment income and is reconciled at ordinary federal and provincial rates. The cheque withholding method can make the deduction look different from regular salary.
Do CPP and EI apply to commission?
Generally yes, until the annual contribution and premium maximums are reached. Quebec commission income can also attract QPP and QPIP.
What is Form TD1X?
Commission employees may use TD1X to estimate deductible commission expenses when the employer calculates income tax withholding.
For a one-off lump sum, compare the bonus tax calculator. For the full paycheque, use payroll deductions.
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