Bonus Calculator
Receiving a bonus? Use our Bonus Calculator to identify how much you'll actually take home after federal and state tax withholdings. Don't let tax surprises ruin your celebration.
Bonus Calculator
Calculate net bonus after tax
🧾 Tax Notes
Federal Withholding: 22% flat rate (under $1M).
Social Security: 6.2%
Medicare: 1.45%
Note: Adjust the tax rate field to include state/local taxes or FICA if needed.
Understanding Bonus Taxes
The "Bonus Tax" Myth
Technically, there is no special "bonus tax." Bonuses are considered supplemental income by the IRS and are subject to federal income tax, just like your regular wages. However, the withholding method is different, often using a flat 22% rate, which can make it feel like your bonus is taxed more heavily than your paycheck.
- Percentage Method: Employers withhold a flat 22% for federal tax.
- Aggregate Method: Your bonus is added to your regular paycheck, and taxes are calculated on the total, often pushing you into a higher withholding bracket for that period.
Frequently Asked Questions
In the United States, bonuses are typically taxed as supplemental income. Employers generally withhold federal income tax at a flat rate of 22% for bonuses under $1 million. In addition to federal tax, you will also see deductions for Social Security (6.2%) and Medicare (1.45%), plus any applicable state and local taxes.
Possibly. The 22% withholding is just an estimate. When you file your annual tax return, your actual tax liability is calculated based on your total income for the year. If the 22% withheld was more than what you actually owed based on your tax bracket, you will receive the difference as a tax refund. If your bracket is higher than 22%, you may owe more.
Employers generally must follow IRS guidelines for supplemental wages (flat 22% or aggregate method). However, you can adjust your W-4 form to change your overall withholding allowances for the year, which might help balance out any over- or under-withholding from your bonus.