Canadian Employee Equity Tax
Pick the right calculator for your equity plan. All three calculators handle federal and provincial tax with year-specific rates for 2025 and 2026.
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Side-by-Side Comparison
| Attribute | Stock Options | RSUs | ESPP |
|---|---|---|---|
| Taxable event | Exercise | Vest | Purchase |
| Tax rate | Half marginal if 110(1)(d) applies | Full marginal | Full marginal |
| 50% deduction | Yes, under conditions | No (excluded) | No |
| Employer withholding | Yes on benefit | ~37% flat (often short) | Typically on discount |
| Capital gains on sale | 50% inclusion | 50% inclusion | 50% inclusion |
| Common employers | Shopify, big banks (executives) | Big tech, US-listed, large CDN public | US-headquartered public companies |
Common Questions
How does the $200,000 vesting cap interact with multiple grants?
The cap is on total vesting in a calendar year across all grants from your employer (and from associated corporations under the related-party rules). With multiple grants vesting in the same year, options are applied against the $200,000 limit in order of grant date (earliest first) — you don't choose the order. If two or more grants were made on the same date, your employer designates the order for this purpose.
What's the difference between CCPC options and public-company options?
CCPC options defer the option benefit until you dispose of the shares, rather than recognizing it at exercise. The deferral is the main advantage. You may also claim a 50% deduction at disposition if the shares are held at least two years (s.110(1)(d.1)). The $200k cap does not apply to CCPC options.
What if I leave Canada with unvested equity?
Unvested equity is typically forfeited per your employment agreement. Vested equity may trigger departure tax under ITA s.128.1(4) — see the Departure Tax Calculator (coming in Wave 3) for details. RSUs and PSUs with deferred vesting may continue to be taxed in Canada via withholding even after departure if the underlying vesting period spans your Canadian-resident days.
Sources
Related Calculators
Employee Stock Option Deduction
110(1)(d) 50% deduction with CCPC + non-CCPC modes and $200k vesting cap
RSU Tax (Canada)
Tax on RSU vests and post-vest dispositions; withholding-shortfall warning
ESPP Tax (Canada)
Employee Stock Purchase Plan tax with optional lookback feature
Capital gains tax
50% inclusion rate on gains from equity dispositions
Equity Compensation Hub
Compare all Canadian equity comp calculators