Since this is added onto our pay, they tax it based on the last dollar they anticipate us to make. In my case I was taxed at 43%, then they took pension because the money is pensionable, and of course CPP and EI. Now, I did get an incentive on Apr 2nd as well so a good comparison for my pay won't come until next month, but I still paid almost double what I normally pay in income tax, Pension, CPP and EI and my back pay was less than half my normal pay.