Bonus Tax Calculator.
See how much of your bonus you actually take home after taxes.
Processing bonus withholdings...
How Bonuses Are Taxed
Bonuses are classified as supplemental wages by the IRS. Most employers withhold federal tax on bonuses using the flat 22% rate (37% on amounts over $1 million).
State taxes and FICA (Social Security + Medicare) are also withheld from your bonus, just like regular wages.
Frequently Asked Questions
Why are bonuses taxed at 22%?
The IRS classifies bonuses as supplemental wages. Employers typically use the flat Percentage Method, which mandates withholding a flat 22% federal tax rate on supplemental earnings under $1 million. This rate does not include state tax, local tax, or FICA deductions.
Are bonuses taxed differently than regular income?
At tax time, bonuses and regular income are taxed exactly the same under progressive tax brackets. The difference lies in the payroll withholding methods (either a flat 22% withholding or the aggregate method), which can temporarily lead to larger tax deductions on your paystub.
How much of my bonus will I actually take home?
Generally, you will take home between 50% and 70% of a bonus paycheck. If your employer uses the standard percentage method, you will have 22% withheld for federal taxes, 7.65% for FICA, and state tax (ranging from 0% to 10%+ depending on your location).
Why MyPaycheckCalculator is Better
If you are looking for a private, faster Bonus Tax Calculator or search for a secure SmartAsset bonus tax calculator alternative, we offer a modern, uncluttered alternative. Here is how our utility compares to legacy traditional options:
MyPaycheckCalculator Advantage
- Instantly estimate 22% flat federal rate and state supplemental taxes.
- Calculations are processed on your device with no remote storage.
- Loads in 200ms with a clean layout and zero Cumulative Layout Shift.
Legacy Calculator Drawbacks
- Surrounds calculations with slow, heavy third-party banner ads.
- Drives users toward financial planning sales channels.
- Requires complex forms when calculating simple flat supplemental withholdings.