Tax on Extra Income
A bonus or commission cheque almost always comes back smaller than you expected. That's not a mistake — it's your marginal rate landing on top of the salary you already earn.
Extra income stacks on your regular pay, so it's taxed at your highest bracket, not your average one. Payroll also often withholds a flat lump-sum rate up front, which is why the deposit can look punishing even when the real tax works out lower at year end. These two calculators show the difference between what's withheld and what you actually keep.