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
| Benefit | Taxable? | Reported in | Guide |
|---|---|---|---|
| Group health & dental premiums | No (except Quebec) | N/A (Quebec: RL-1 box J) | Health and dental plans |
| Group life insurance (employer-paid premiums) | Yes | T4 box 40 | Group life insurance |
| Long-term disability premiums (employer-paid) | No (premium) | N/A | LTD income |
| Personal use of company vehicle | Yes | T4 box 34 / box 40 | Company car |
| Employer-paid parking | Yes | T4 box 40 | Parking |
| WFH allowance (flat, no receipts) | Yes | T4 box 40 | Work-from-home allowance |
| Moving/relocation assistance | Partially | T4 box 40 | Relocation assistance |
| Employer RRSP matching | Yes, offset by an RRSP deduction | T4 box 14 | Employer RRSP match |
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.
Related pages
Browse All Taxable Employment Benefits in Canada: Guides by Benefit Type Articles
Browse all 11 articles in this section.