Bonus Tax Calculator
Find out how much of your bonus you actually keep, and why the withholding on it looks so high.
Estimate only. Your employer may instead add the bonus to a regular paycheck and withhold using the aggregate method. State amounts are approximate.
Why bonuses seem to be taxed more
A bonus is classed by the IRS as supplemental wages. Many employers withhold federal income tax on it at a flat 22%, no matter how much you earn (and 37% on the part of supplemental wages above $1 million in a year). On top of that come Social Security (6.2%, until you reach the $184,500 wage base), Medicare (1.45%) and any state tax. That is why a $5,000 bonus can arrive as roughly $3,500 or less.
Withholding is not your final tax
The 22% is only a prepayment. Your real federal tax depends on your total income and bracket when you file. Example: a single filer earning $60,000 receives a $5,000 bonus. Withholding is $1,100 (22%). Because the extra $5,000 falls mostly in the 12% bracket, the actual extra federal tax is about $600, so roughly $500 may come back as a refund. Someone in the 24% bracket could instead owe a little more at filing.
How the calculator works
- Federal withholding: 22% of the bonus, plus 37% of any amount over $1,000,000.
- Social Security: 6.2% only on the part of the bonus that stays under the wage base given your salary.
- Medicare: 1.45%, plus 0.9% on wages above $200,000 ($250,000 married filing jointly).
- State: typical supplemental rates for California (10.23%) and New York (11.7%); simplified effective rates elsewhere.
- Actual tax: the difference in 2026 federal tax with and without the bonus, using the standard deduction.
Ways to keep more of a bonus
Ask payroll whether you can direct part of the bonus into a 401(k) or HSA, which reduces taxable income. You can also adjust your Form W-4 if you consistently over- or under-pay during the year.
FAQ
Is a bonus taxed at 22% or 40%?
Federal withholding is usually 22% (or the aggregate method). The 40% figure people hear is a rough total including payroll and state taxes; it is not a tax rate.
Do I get the withheld money back?
If more was withheld than your actual tax, the difference is refunded when you file your return. If less, you pay the balance.
Are bonuses subject to FICA?
Yes. Social Security and Medicare apply to bonuses like regular wages.
Rules: IRS Publication 15 (supplemental wages), 2026 inflation adjustments. See sources and methodology.