Bonus Tax Calculator
Bonuses feel taxed harder than regular pay because most employers withhold federal income tax at the IRS flat supplemental rate of 22% — often higher than your normal withholding rate. That is withholding, not your final tax: it settles when you file. Enter your bonus to estimate what lands in your account.
Worked example
On a $5,000 bonus: federal withholding at 22% is $1,100, FICA at 7.65% is $382.50, and state tax at 0% is $0 — total withheld $1,482.50, for an estimated take-home of $3,517.50.
Formula
Estimated take-home = bonus − (bonus × federal %) − (bonus × FICA %) − (bonus × state %). FICA is 6.2% Social Security (until the annual wage cap) plus 1.45% Medicare = 7.65% for most employees.
FAQ
Why was 22% taken out of my bonus? The IRS lets employers withhold on supplemental wages like bonuses at a flat 22% (for bonuses up to $1 million). If your actual bracket is lower, the difference comes back as part of your tax refund.
Are bonuses taxed at a special higher rate? No — a bonus is taxed as ordinary income, exactly like salary. Only the upfront withholding uses the special flat rate; some employers instead use the aggregate method, adding the bonus to a regular paycheck and withholding as if it were normal pay.