These calculators are for informational purposes only and do not constitute financial, legal, or tax advice.

These results are estimates based on simplified, configurable tax assumptions and are not tax or financial advice. Actual net pay, withholding, and tax liability depend on your complete personal tax situation. Consult a qualified tax professional or payroll provider.

Bonus Tax Calculator

Estimate how much federal, state, and payroll tax comes out of your bonus – and what you’ll actually take home.

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Quick Answer

This Bonus Tax Calculator estimates how much of your bonus goes to federal withholding, Social Security, Medicare, and state tax, and what you’d likely take home. Enter your bonus amount, annual base salary, filing status, and state, and it shows your estimated tax under both the IRS’s flat supplemental-wage method and the aggregate method, side by side – all in USD ($).

A bonus check almost always looks smaller than the number you were told. Whether it’s an annual bonus, a signing bonus, a holiday bonus, or a commission payout, a meaningful chunk gets withheld before it reaches your account – and the way that withholding works is different from your regular paycheck.

This Bonus Tax Calculator estimates that withholding using your actual numbers, and shows you two different IRS-recognized methods side by side so you can see how the result can vary depending on which one your employer uses.

How the Bonus Tax Calculator Works

The calculator uses four inputs:

Input	What It’s Used For
Bonus Amount	The gross bonus you’re estimating taxes on.
Annual Base Salary	Used to estimate Social Security’s wage-base effect and the aggregate-method federal tax calculation.
Filing Status	Used for the aggregate method’s federal bracket and standard deduction calculation.
State	Used to apply an estimated flat state withholding rate (0% for states with no income tax).

From there, it estimates federal withholding (using both the flat supplemental rate and the aggregate method), Social Security tax, Medicare tax (including the Additional Medicare Tax where it applies), state tax, and your resulting net bonus and effective tax rate under each method.

How Are Bonuses Taxed?

Bonuses are treated as “supplemental wages” by the IRS – pay outside your regular wages, which also includes commissions, overtime, severance, and similar payments. Supplemental wages can be withheld differently than your regular paycheck, which is why a bonus often looks like it’s taxed at a different rate.

Employers generally use one of two IRS-recognized methods to withhold federal tax on supplemental wages:

• Flat-rate (percentage) method: a flat 22% is withheld on bonus amounts up to $1 million in a calendar year (37% on any amount above $1 million), regardless of your regular tax bracket.

• Aggregate method: the bonus is combined with your most recent regular paycheck, and federal tax is withheld on the combined total using standard payroll withholding tables, then the regular-paycheck portion is backed out.

Withholding is not the same as your actual tax liability. Both methods only determine how much is set aside upfront – what you actually owe on that income is calculated when you file your tax return, based on your total annual income, deductions, and credits.

How Much Tax Is Taken Out of a Bonus?

Under the flat-rate method, 22% of your bonus goes to federal withholding before Social Security, Medicare, and any state tax are even factored in – which can combine to 30% or more withheld from a typical bonus. That can feel steep, especially compared to a regular paycheck where withholding is spread more evenly across your income.

Four related terms are easy to mix up, so here’s how they differ:

Term	What It Means
Withholding Rate	The rate your employer uses to set aside tax from your paycheck (e.g., the flat 22% supplemental rate)
Marginal Tax Rate	The tax rate that applies to your next dollar of income, based on your tax bracket
Effective Tax Rate	Your total tax divided by your total income – typically lower than your marginal rate
Actual Tax Liability	What you truly owe for the year, determined when you file your return

The 22% withholding rate is neither your marginal rate nor necessarily your effective rate – it’s simply a standardized withholding shortcut the IRS allows employers to use for supplemental wages.

Federal Taxes on Bonuses

Several federal taxes can apply to a bonus (figures below reflect 2026 IRS guidance):

• Federal income tax withholding – 22% flat rate on bonuses up to $1 million (37% above that), or combined with regular wages under the aggregate method

• Social Security tax – 6.2% of wages, up to the annual Social Security wage base ($184,500 for 2026)

• Medicare tax – 1.45% of all wages, with no wage base cap

• Additional Medicare Tax – an extra 0.9% on wages above $200,000 in a calendar year (regardless of filing status, though the threshold is $250,000 for married filing jointly and $125,000 for married filing separately on your tax return)

If a bonus pushes your year-to-date wages past the Social Security wage base, the portion above that base isn’t subject to further Social Security tax – this calculator accounts for that by looking at your salary and bonus together.

State and Local Taxes on Bonuses

State and local taxation of bonuses varies significantly by location. Some states, like Texas and Florida, have no state income tax at all. Others apply their own supplemental wage withholding rate, which may or may not match the rate used for regular wages. Some cities and localities also impose their own income taxes.

Because of this variation, your actual paycheck can differ from this calculator’s estimate depending on your specific state, any local taxes, your employer’s payroll setup, and other deductions such as retirement contributions or health insurance premiums that may come out of your bonus.

Bonus Tax Example

Illustrative example only, not personalized tax advice. Based on this calculator’s own default inputs.

A $15,000 bonus, $80,000 annual salary, Single filer, in Texas (no state income tax), using the flat supplemental-rate method:

Item	Amount
Gross Bonus	$15,000.00
Federal Withholding (22%)	$3,300.00
Social Security (6.2%)	$930.00
Medicare (1.45%)	$217.50
State Tax (Texas, 0%)	$0.00
Total Tax	$4,447.50
Estimated Net Bonus	$10,552.50

That works out to an effective withholding rate of about 29.65% on the bonus itself. For comparison, the same bonus in a state with a hypothetical 5% flat withholding rate would have about $750 more withheld, for an estimated net bonus closer to $9,802.50. This example is illustrative – it is not personalized tax advice, and your own numbers will depend on your specific situation.

Bonus Withholding vs. Actual Taxes Owed

This is the single most important distinction to understand about bonus taxes: what’s withheld from your bonus check is not automatically what you’ll owe on that income. Withholding is an upfront estimate; your real tax liability is calculated when you file your return, based on your full year of income.

Here’s a simple way to see why they can differ. Say your bonus had $3,300 withheld at the flat 22% federal rate, but based on your total annual income, your actual marginal tax bracket for that year turns out to be 12%. In that case, you likely had more withheld from the bonus than you’ll ultimately owe on it – and that difference typically comes back to you as part of your tax refund (or reduces what you owe elsewhere on your return).

The reverse can also happen: if your actual marginal rate is higher than 22% because of your total income, the flat withholding may not have covered your full liability on that bonus, and you could owe more when you file.

How to Calculate Your Bonus After Taxes

At a high level:

Gross Bonus − Estimated Taxes − Other Applicable Deductions = Estimated Take-Home Bonus

Start with your gross bonus amount.

Estimate federal withholding – typically the flat 22% supplemental rate, or the aggregate method if your employer combines it with a regular paycheck.

Add Social Security (6.2%, subject to the annual wage base) and Medicare (1.45%, plus 0.9% Additional Medicare Tax above $200,000).

Add any applicable state and local tax withholding.

Subtract any other payroll deductions that apply to the bonus (such as retirement contributions), if your employer applies them.

This is a simplified framework – actual federal tax calculations, especially under the aggregate method, involve your full tax bracket structure and are more complex than a single flat percentage. The calculator above handles that complexity for you using both methods.

Why Does My Bonus Have So Much Tax Taken Out?

It’s typically the withholding method, not a higher final tax rate on that income. The flat 22% federal supplemental rate, combined with Social Security, Medicare, and often state tax, can add up to a large chunk withheld upfront – more than many people expect relative to their regular paycheck.

It’s not accurate to say the bonus is necessarily “taxed more” than your regular income – it’s withheld differently. For many employees, especially those in lower or middle tax brackets, the amount withheld from a bonus check turns out to be more than their actual tax liability on that income, which gets reconciled when they file their return.

Tax Planning Considerations

A few general, educational considerations worth discussing with a qualified tax professional when relevant:

• Reviewing your W-4 to see if your overall withholding still matches your expected tax situation for the year

• Understanding how pre-tax retirement contributions (such as a 401(k)) may reduce the taxable portion of a bonus, if your plan allows bonus deferrals

• Considering the timing of other income or deductions in a year you receive a large bonus

• Keeping records of withholding and income for accurate tax filing

This is general educational information, not individualized tax advice – a qualified tax professional can review your specific W-4 elections, retirement contributions, and overall tax situation.

Estimate Your Own Bonus Taxes

Enter your bonus, salary, filing status, and state above to compare both withholding methods.

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Frequently Asked Questions

How are bonuses taxed in the US?

Bonuses are treated as supplemental wages. Employers typically withhold federal tax using either a flat 22% rate (37% above $1 million) or the aggregate method, which combines the bonus with a regular paycheck. Social Security, Medicare, and applicable state tax also apply.

Is a bonus taxed differently from regular income?

Withholding can be different – often a flat rate instead of your regular paycheck’s bracket-based withholding. But bonuses and regular wages are both ordinary income and are ultimately taxed under the same tax brackets when you file your return.

What is the federal tax withholding rate on bonuses?

The IRS flat supplemental wage rate is 22% for bonuses up to $1 million in a calendar year, and 37% on any amount above that, per current IRS guidance (2026 figures). Employers may instead use the aggregate method.

Why was so much tax taken from my bonus?

The combination of the flat 22% federal rate, Social Security, Medicare, and state tax can add up to 30% or more withheld. This is a withholding amount, not necessarily your final tax rate on that income.

Does a bonus increase my tax bracket?

A bonus adds to your total taxable income for the year, which could push some of your income into a higher bracket depending on your total earnings – but it doesn’t retroactively raise the rate on income you already earned below that bracket.

Are bonuses subject to Social Security and Medicare taxes?

Yes. Bonuses are subject to the same 6.2% Social Security tax (up to the annual wage base) and 1.45% Medicare tax as regular wages, plus the 0.9% Additional Medicare Tax above $200,000 in combined wages for the year.

Are bonuses taxed by states?

It depends on the state. States with no income tax don’t tax bonuses at the state level. States that do have income tax may apply their own supplemental wage withholding rate, which varies and may differ from the rate used for regular wages.

Can I reduce the tax on my bonus?

Withholding on a bonus check itself can’t generally be changed by the employee at the time of payment, but factors like pre-tax retirement contributions (if your employer allows bonus deferrals) or adjusting your W-4 can affect your overall year-end tax picture. A tax professional can advise on options specific to your situation.

Is bonus withholding the same as the tax I actually owe?

No. Withholding is an upfront estimate taken from your paycheck. Your actual tax liability on that income is calculated when you file your tax return, based on your total annual income, deductions, and credits.

How much of my bonus will I take home?

It depends on your bonus amount, salary, filing status, and state. After federal, Social Security, Medicare, and applicable state withholding, many employees take home somewhere around 65-75% of a bonus, though this varies – use the calculator above for an estimate based on your own numbers.

Do bonuses count as taxable income?

Yes. Cash bonuses are taxable income, subject to federal income tax, Social Security, Medicare, and applicable state and local taxes, just like regular wages.

Key Takeaways

• Bonuses are treated as supplemental wages and are often withheld at a flat 22% federal rate, or combined with your regular paycheck under the aggregate method.

• Withholding is not the same as your actual tax liability – your final tax owed is determined when you file your return.

• Bonuses are also subject to Social Security (6.2%, up to the wage base), Medicare (1.45%, plus 0.9% above $200,000), and often state tax.

• A bonus isn’t necessarily “taxed more” – it’s typically just withheld differently than your regular paycheck.

• Use this Bonus Tax Calculator to compare the supplemental and aggregate withholding methods for your own bonus amount, salary, filing status, and state.

Disclaimer: This calculator and content are for educational and illustrative purposes only and do not constitute tax, financial, or legal advice. We are not licensed tax professionals or accountants. Figures reflect 2026 IRS guidance available at publication and are subject to change. Actual bonus withholding and final tax liability depend on your individual circumstances, your employer’s payroll practices, and applicable federal, state, and local tax rules. Consult a licensed tax professional or refer to IRS.gov for guidance specific to your situation.

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