Bonus Tax Calculator

This calculator shows the take-home amount of a bonus, commission or other one-off payment after payroll withholding. It applies the federal supplemental rate you enter (22% by default), 7.65% FICA (6.2% Social Security plus 1.45% Medicare) and a flat state rate, and lists each deduction separately.

Withholding is not the same as the tax you finally owe. The 22% is a prepayment: when you file your return, the bonus is added to the rest of your income and taxed at your normal bracket rates, so you may get some back or owe more. The federal income tax calculator shows which bracket your total income lands in.

The figures assume the flat percentage method. Employers can instead use the aggregate method, adding the bonus to a regular paycheck and withholding as if you earned that much every period, which often withholds more. For your regular wages, use the paycheck calculator.

The flat-rate method and the 22% and 37% rates come from IRS Publication 15 (Circular E), Employer's Tax Guide. The calculator applies FICA at a flat 7.65%, which is right for most earners but not for high earners: Social Security stops once your wages for the year pass the annual wage base set by the Social Security Administration, and an extra 0.9% Medicare tax is withheld on wages above $200,000. Pre-tax 401(k) deferrals from the bonus reduce federal and most state income tax withholding but not FICA.

A bonus is taxed at the same rates as your salary; it only feels heavier because of how withholding works.

• Flat 22% vs your bracket: if your top bracket is 10% or 12%, too much is withheld and you get the difference back. If it is 24% or more, too little is withheld.
• Aggregate method: when a bonus is lumped into a regular paycheck, payroll software annualizes that bigger check, which can push withholding well above 22% for that one payment.
• FICA and state tax: these come out of bonuses exactly as they do from salary, adding 7.65% plus your state rate on top of federal withholding.

Once your supplemental wages for the calendar year pass $1 million, the employer must withhold the excess at 37%, the top federal rate, whatever your W-4 says. To estimate this with the calculator, enter a blended federal rate: (22% × $1,000,000 + 37% × the amount over $1,000,000) ÷ total bonus.

For a $1.5 million bonus that is ($220,000 + $185,000) ÷ $1,500,000 = 27%. At this level the flat 7.65% FICA figure overstates Social Security tax, because most of the bonus will be above the wage base, and 0.9% Additional Medicare tax applies instead.

• Defer it into a [401(k)](/401k-calculator) or 403(b) if your plan allows elections on bonus pay, up to the annual contribution limit. Deferred amounts skip federal income tax withholding now, though FICA still applies.
• Fund an HSA through payroll if you have a high-deductible health plan; payroll HSA contributions avoid both income tax and FICA.
• Check timing: a bonus paid in January instead of December falls into the next tax year, which helps if you expect lower income then.
• Update your W-4 if a large bonus will leave you short at filing, rather than waiting for a bill and possible underpayment penalty.