NetPayPlannerBonus Tax Calculator
Enter your bonus and your regular salary. This bonus tax calculator shows the tax your employer is likely to withhold from the bonus and, separately, how much extra tax the bonus adds to your full year.
Flat-rate withholding (22% federal)
Take-home bonus
$3,517.50
| Federal income tax | $1,100.00 |
| Social Security | $310.00 |
| Medicare | $72.50 |
| State income tax | $0.00 |
Full-year tax effect
Take-home bonus
$4,017.50
| Federal income tax | $600.00 |
| Social Security | $310.00 |
| Medicare | $72.50 |
| State income tax | $0.00 |
Withholding is not the same as the tax you owe. If more was withheld than you owe, you get the difference back when you file.
How bonuses are taxed
A bonus counts as supplemental wages. Many employers withhold federal income tax at a flat 22% on a bonus. Others add it to your regular paycheck and withhold as if the total repeated all year. Either way, Social Security and Medicare tax apply, and your state may withhold too. The tax you actually owe depends on your total income for the year.
Frequently asked questions
What is the federal tax rate on a bonus?
The flat withholding rate for bonuses up to $1 million is 22%. For the part of supplemental wages over $1 million, the rate is 37%.
Why does my bonus look so heavily taxed?
The 22% flat rate, plus 7.65% for Social Security and Medicare, plus state tax, can add up to more than 30% of the bonus. The 22% is only withholding. If your real tax rate is lower, the extra comes back as a refund.
Are bonuses taxed more than regular pay?
Not in the end. A bonus is taxed as ordinary income for the year. Only the withholding method is different.
Can I lower the tax on my bonus?
A larger 401(k) contribution from the bonus lowers income tax on it. Ask your employer whether you can send part of the bonus to your 401(k) or HSA.