How Overtime Pay Works in Canada

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Overtime rules are set provincially, not federally. The exact threshold and rate depend on where you work.

The general pattern

Most provinces require overtime pay at 1.5× your regular hourly rate once you exceed 40 hours worked in a week (some provinces use 44 hours, and some have daily overtime rules as well). Salaried employees in certain professional, managerial, or supervisory roles are often exempt from overtime rules — exemptions vary by province and job classification.

How overtime is taxed

There’s no special “overtime tax rate” — overtime pay is simply added to your regular income and taxed the same way. If it pushes you into a higher bracket, only the portion within that bracket is taxed at the higher rate. Overtime also counts toward your CPP and EI contributions, same as regular pay.

Example: $30/hour, 5 hours of overtime in a week

One week’s overtime
  • Overtime rate: $30 × 1.5 = $45/hour
  • 5 hours of overtime: $45 × 5 = $225 extra that week
  • Added to your regular gross pay and taxed together

Model your own overtime

+ Advanced options (overtime, bonus)
Estimated take-home pay $0 per year
Gross pay$0
Federal tax$0
Provincial tax$0
CPP$0
CPP2$0
EI$0
QPIP$0
Total deductions$0
Effective tax rate0%
Take-home %0%
Tax year 2026 · Ontario · Biweekly

Independent estimate based on 2026 CRA federal/provincial payroll formulas, Revenu Québec figures, and published CPP/CPP2/QPP/QPP2, EI and QPIP rates. Not affiliated with the Canada Revenue Agency or the Government of Canada. Actual payroll may differ based on your employer’s specific deductions, benefits, TD1 claim amounts, and other factors. This tool does not constitute tax or financial advice.

Add your annual overtime earnings under “Advanced options” to see the combined effect on your take-home pay.

Related guides

Overtime Pay Calculator · Salary vs. Hourly Pay

Last reviewed: September 2026. Overtime thresholds and exemptions vary by province and role — consult your provincial employment standards office for rules specific to your situation. Independent guide.