Income level and province of residence matter

To calculate tax on a bonus, you first need to determine which income tax brackets the employee falls under. According to Revenue Canada, these are Canada’s federal income tax rates for 2021:

• 15% on the first $49,020
• 20.5% on the next $49,020
• 26% on the next $53,939
• 29% on the next $64,533
• 33% on the amount over $216,511

Also, each province has its own marginal tax rates that increase in-step with income: Newfoundland and Labrador

• 8.7% on the first $38,081
• 14.5% on the next $38,080
• 15.8% on the next $59,812
• 17.3% on the next $54,390
• 18.3% on the amount over $190,363

To give a $5,000 bonus to an employee making $80,000, you’d need to pay $7,849.08. Prince Edward Island

• 9.8% on the first $31,984
• 13.8% on the next $31,985
• 16.7% on the amount over $63,969

To give a $5,000 bonus to an employee making $80,000, you’d need to pay $7,961.54. Nova Scotia

• 8.79% on the first $29,590
• 14.95% on the next $29,590
• 16.67% on the next $33,820
• 17.5% on the next $57,000
• 21% on the amount over $150,000

To give a $5,000 bonus to an employee making $80,000, you’d need to pay $7,957.95. New Brunswick

• 9.68% on the first $43,835
• 14.82% on the next $43,836
• 16.52% on the next $54,863
• 17.84% on the next $19,849
• 20.3% on the amount over $162,383

To give a $5,000 bonus to an employee making $80,000, you’d need to pay $7,732.16. Quebec

• 15% on the first $45,105
• 20% on the next $45,095
• 24% on the next $19,555
• 25.75% on the amount over $109,755

To give a $5,000 bonus to an employee making $80,000, you’d need to pay $8,403.09. Ontario

• 5.05% on the first $45,142
• 9.15% on the next $45,145
• 11.16% on the next $59,713
• 12.16% on the next $70,000
• 13.16% on the amount over $220,000

To give a $5,000 bonus to an employee making $80,000, you’d need to pay $7,107.23. Manitoba

• 10.8% on the first $33,723
• 12.75% on the next $39,162
• 17.4% on the amount over $72,885

To give a $5,000 bonus to an employee making $80,000, you’d need to pay $8,051.67. Saskatchewan

• 10.5% on the first $45,677
• 12.5% on the next $84,829
• 14.5% on the amount over $130,506

To give a $5,000 bonus to an employee making $80,000, you’d need to pay $7,462.63. Alberta

• 10% on the first $131,220
• 12% on the next $26,244
• 13% on the next $52,488
• 14% on the next $104,976
• 15% on the amount over $314,928

To give a $5,000 bonus to an employee making $80,000, you’d need to pay $7,194.32. British Columbia

• 5.06% on the first $42,184
• 7.7% on the next $42,185
• 10.5% on the next $12,497
• 12.29% on the next $20,757
• 14.7% on the next $41,860
• 16.8% on the next $62,937
• 20.5% on the amount over $222,420

To give a $5,000 bonus to an employee making $80,000, you’d need to pay $7,069.20. Yukon

• 6.4% on the first $49,020
• 9% on the next $49,020
• 10.9% on the next $53,938
• 12.8% on the next $348,022
• 15% on the amount over $500,000

To give a $5,000 bonus to an employee making $80,000, you’d need to pay $7,092.12. Northwest Territories

• 5.9% on the first $44,396
• 8.6% on the next $44,400
• 12.2% on the next $55,566
• 14.05% on the amount over $144,362

To give a $5,000 bonus to an employee making $80,000, you’d need to pay $7,052.20. Nunavut

• 4% on the first $46,740
• 7% on the next $46,740
• 9% on the next $58,498
• 11.5% on the amount over $151,978

To give a $5,000 bonus to an employee making $80,000, you’d need to pay $6,896.62.