Free Bonus Tax Calculator
Calculate your bonus take-home pay after federal, state, and FICA taxes. See exactly how much of your bonus you'll keep using IRS supplemental wage rates.
📚 Understanding Bonus Taxation
💰 How Bonuses Are Taxed
Bonuses are considered "supplemental wages" by the IRS and are taxed differently than regular income. Your employer withholds federal tax using either the flat 22% rate or your regular withholding rate.
Example: $10,000 bonus = $2,200 federal withholding (22%) before state and FICA taxes.
📊 22% Federal Withholding Rate
For bonuses under $1 million, the IRS flat supplemental rate is 22%. For bonuses over $1 million, the rate is 37% on the excess amount.
Note: This is withholding, not your final tax rate. You may get a refund or owe more at tax time.
🏛️ State Tax Variations
State tax on bonuses varies widely. Some states have no income tax (TX, FL, WA), while others like CA can withhold 10%+ on bonuses.
High-tax states: CA (10.23%), NY (6.85%), NJ (6.37%). Always check your state's rate.
💡 FICA & Medicare on Bonuses
Bonuses are subject to the same FICA taxes as regular wages: 6.2% Social Security (up to $168,600 in) and 1.45% Medicare (no limit).
High earners: Additional 0.9% Medicare tax applies to income over $200,000 (single) or $250,000 (married).
📈 Pre-tax Deductions Strategy
Maximize your bonus by contributing to 401(k), HSA, or FSA before taxes are calculated. This reduces your taxable bonus amount.
Example: $10,000 bonus - $2,000 401(k) = $8,000 taxable bonus, saving you $440+ in federal tax.
⚠️ Year-End Tax Surprises
The 22% withholding may not match your actual tax bracket. If you're in a higher bracket (24%, 32%, 35%, 37%), you'll owe more at tax time.
Tip: Set aside extra money or adjust W-4 withholding to avoid a surprise tax bill.
How to Use This Bonus Tax Calculator
Enter Bonus Amount
Input your gross bonus amount before any taxes or deductions.
Select State & Filing Status
Choose your state for accurate state tax calculation and your filing status.
Add Pre-tax Deductions
Include 401(k), HSA, or other pre-tax deductions to see your net take-home bonus.
Frequently Asked Questions
How are bonuses taxed differently than regular income?
Bonuses are classified as "supplemental wages" by the IRS. Employers typically withhold a flat 22% federal tax (or 37% on amounts over $1 million) instead of using your regular withholding rate. This is just withholding—your actual tax liability depends on your total annual income and tax bracket. You may get a refund or owe more when you file your tax return.
Why is 22% withheld from my bonus?
The IRS requires employers to withhold 22% federal tax on supplemental wages (bonuses) under $1 million using the flat-rate method. This is a simplified withholding approach that doesn't account for your specific tax situation. If your actual tax bracket is higher (24%, 32%, 35%, or 37%), you'll owe additional tax when you file. If it's lower (10% or 12%), you'll get a refund.
Will I get my bonus tax back at tax time?
It depends on your total income and tax bracket. The 22% withholding is an estimate. If you're in a lower tax bracket (10% or 12%), you'll get a refund of the excess withholding. If you're in a higher bracket (24%+), you'll owe additional tax. The withholding is just a prepayment—your final tax is calculated when you file your return based on all your income for the year.
How can I reduce taxes on my bonus?
You can reduce taxable bonus income by maximizing pre-tax deductions: contribute to your 401(k) (up to $23,000 in, or $30,500 if 50+), HSA ($4,150 single, $8,300 family), or traditional IRA. You can also defer the bonus to the next tax year if your employer allows it, or request it be paid as regular wages over multiple paychecks instead of a lump sum. Consult a tax professional for personalized strategies.