CA Tax Tools

Commission Payroll Calculator

Estimate the incremental tax and payroll contributions caused by annual commission income on top of base salary.

01INPUTS

Salary and commission

02RESULTS

Net commission

$13,230

From $20,000 gross

Estimated deductions

$6,770

34.0%

Total annual income

$90,000
03BREAKDOWN
Incremental income tax$6,080
Additional CPP$690
Additional EI$0

This 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.

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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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