Home → Overtime Pay Calculator
Add your overtime earnings to your base pay. See the combined effect on your take-home pay after tax.
+ Advanced options (overtime, bonus)
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.
Enter your base salary or hourly earnings, then open “Advanced options” and add your annual overtime pay — it’s combined with your base earnings and taxed as regular income.
How overtime pay is taxed
Overtime pay isn’t taxed at a special rate — it’s simply added to your regular income and taxed the same way. If overtime pushes you into a higher tax bracket, only the portion of income within that higher bracket is taxed at the higher rate; your existing income keeps its original, lower rate.
Overtime pay rules in Canada
Most provinces require overtime pay at 1.5× your regular hourly rate after 40 hours worked in a week (some provinces use 44 hours as the threshold, and some have daily overtime rules too). Exact thresholds and rates vary by province and industry — check your provincial employment standards for the rules that apply to you.
Example: $60,000 base + $5,000 overtime, Ontario
Frequently asked questions
Is overtime taxed at a higher rate than regular pay?
No — there’s no special “overtime tax rate” in Canada. Overtime is added to your regular income and taxed at whatever bracket that combined income falls into, same as any other earnings.
Does overtime affect my CPP or EI deductions?
Yes — overtime pay is insurable and pensionable earnings, so it counts toward your CPP and EI contributions the same as regular pay, up to the annual maximums.
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Canada Paycheck Calculator · Hourly Paycheck Calculator