Asked
I just got $26k of backpay from my employer. My typical salary is $128k, however I have been on mat leave in 2025 so my salary for this year will be about 33k. The 26k backpay was taxed at my normal tax rate for my full salary.
Because my income was much lower this year, should my 26k backpay have been taxed at a lower rate, and if so will I get it back when I file my taxes?
Thank you.
Clint’s answer
You haven't measured out and calculated your tax yet...
Once you file your taxes for the entire year, the government will keep what they are owed, and you will either get a refund (which is the most likely based on the information you have provided), or you will have to make up the difference if you owe any.
Most Payroll calculators will deduct taxes, EI and CPP based on what they might predict as your income for the year based on past salary periods and how much time is left in the year. They will assume that all pay moving forward will be the exact amount you are getting on the current pay period.
Hope this helps make sense of it for you.
October 19, 2025
From Ask Clint: real questions from a Canadian public finance forum, answered by Clint Cole. Names are changed. This is general information, not advice for your situation, and rules and dollar figures may have changed since Clint answered. Terms