Taxable Employment Benefits in Canada: Guides by Benefit Type

These guides cover how CRA taxes each kind of employment benefit, one benefit per page. For the general rules (what counts as a taxable benefit, how box 40 on your T4 works, and the full list of taxable and non-taxable perks), start with what taxable benefits are.

Quick reference

Insurance and health

• Is employer-paid dental and health insurance taxable? The federal private health services plan rule and the Quebec exception.
• Is employer-paid group life insurance taxable? How the premium benefit is calculated and why the death benefit is tax-free.
• Is long-term disability income taxable? Who pays the premium decides whether LTD payments are taxed.

Cars and parking

• Is a company car a taxable benefit? The standby charge, operating cost benefit and logbook.
• Is employer-paid parking a taxable benefit? Fair market value and the scramble, disability and shift-work exceptions.

Allowances and moving

• Is a work-from-home allowance taxable? What an employer can pay tax-free and what goes in box 40.
• Is relocation assistance taxable? Reimbursed moving costs, the $650 allowance and housing loss.

Retirement and equity pay

• Is an employer RRSP match taxable? How a group RRSP match is reported and its effect on your room.
• How stock options are taxed The benefit at exercise, the 50% deduction and CCPC deferral.
• How RSUs are taxed Employment income at vesting, withholding and the later sale.
• How ESPPs are taxed The purchase discount as employment income, then capital gains.

Other income

• Are tips taxable? Controlled vs direct tips and CPP on tip income.
• Are stipends taxable? The scholarship exemption, fellowships and T4A reporting.
• What to do when you get a bonus A bonus is cash pay, taxed through withholding; this guide covers what to do with it.

Government benefits are a separate subject: the government benefits guides cover programs such as maternity leave and ODSP, and the CPP disability guide covers working while you receive it.