Enter your bonus, state and year-to-date wages. We estimate withholding the way most employers do for bonuses paid separately from regular wages: a flat federal rate plus Social Security, Medicare and state tax.
Bonus tax calculator
Enter your bonus and state. We’ll estimate the withholding using the federal flat supplemental method.
Bonus after withholding
$0
Uses the federal flat 22% supplemental withholding rate (37% on supplemental wages over $1 million) and estimates state withholding at your state’s top marginal rate for your income: many states publish their own flat supplemental rates, so your stub may differ. Withholding isn’t your final tax: the bonus is taxed with the rest of your income when you file.
How bonuses are withheld
Bonuses are supplemental wages. When paid separately, most employers withhold federal income tax at a flat 22% (37% on supplemental wages over $1 million in a year). Social Security (6.2%, until you hit the wage base) and Medicare (1.45%) apply as usual, plus state tax.
Withholding isn’t your final tax
Your bonus is added to your other income when you file. If your actual tax bracket is lower than 22%, you may get some back as a refund; if it’s higher, you may owe a little.
Ways to keep more
- Ask whether you can put part of the bonus into your 401(k): it reduces federal income tax now.
- If your employer combines the bonus with a regular paycheck (the aggregate method), withholding may look higher for that check; it evens out at tax time.
Frequently asked questions
Why was my bonus taxed so much?
Flat 22% federal withholding plus FICA and state tax often adds up to 30%-40%. It’s withholding, not your final tax.