Bonus tax calculator
What your employer will withhold from a bonus, what you actually owe on it, and whether to expect money back in April.
On your bonus check
$6,012
| Federal (22% flat) | −$2,200 |
|---|---|
| Social Security + Medicare | −$765 |
| State (10.23%) | −$1,023 |
What you really owe on it
$5,975
| Federal (at your 22% bracket) | −$2,200 |
|---|---|
| Social Security + Medicare | −$765 |
| State | −$1,060 |
The flat-rate withholding is close to what you owe. No surprise at tax time. Effective tax on the bonus: 40.3%.
Why the bonus check looks smaller than your “bracket”
IRS Publication 15 lets employers treat bonuses as supplemental wages and withhold a flat 22% of federal tax, no matter what you earn. That’s a withholding shortcut, not a tax rate. When you file, the bonus is just more wages, stacked on top of your salary, so it’s taxed at whatever bracket those top dollars fall in. The right-hand panel does exactly that: it computes your full-year tax with and without the bonus and shows the difference.
State supplemental rates are the published flat rates where a state has one (for example California 10.23%, New York 11.7%); otherwise the calculator uses your marginal state rate.
Questions people ask
How much tax is taken out of a bonus?
Most employers withhold federal income tax on bonuses at a flat 22% (37% on the portion of supplemental wages over $1 million in a year), plus 6.2% Social Security and 1.45% Medicare, plus state tax. On a $10,000 bonus in a state with no income tax, expect about $2,965 withheld and $7,035 in your account.
Are bonuses taxed at a higher rate than salary?
No. A bonus is ordinary income and is taxed at your normal bracket rates when you file. Only the withholding method differs. If your top bracket is 12%, the 22% withheld on a bonus is more than you owe, and the difference comes back as a refund; if you are in the 32% bracket or higher, 22% is too little and you may owe.
What is the aggregate method?
Instead of a flat 22%, some employers add the bonus to your regular paycheck and withhold as if that whole amount were your normal pay. Because payroll annualises the larger check, this often withholds more than the flat method up front, but again, your final tax is the same.
Can I reduce the tax on my bonus?
You can lower the taxable amount by directing part of it to a traditional 401(k) if your plan allows bonus deferrals and you have room under the annual limit ($24,500 in 2026). The rest is taxed like any other wages.