Bonus Tax Calculator

Say you earn a $10,000 bonus on top of $60,000 in regular pay this year, filing single. Your employer withholds federal tax at the flat supplemental rate of 22% ($2,200), plus Social Security at 6.2% ($620) and Medicare at 1.45% ($145). That's $2,965 withheld, leaving a net bonus of about $7,035 - an effective withholding rate of roughly 29.65%. This bonus tax calculator shows exactly that split so the deposit in your account isn't a surprise. All figures are for tax year 2025 (filed in 2026).

How bonus withholding is calculated

The IRS treats bonuses as supplemental wages. Under the percentage method, federal income tax is withheld at a flat rate:

FICA is then added on top: Social Security 6.2% on wages up to the 2025 wage base of $176,100, and Medicare 1.45% on all wages. High earners pay an extra 0.9% Additional Medicare on wages over $200,000 (single) or $250,000 (married filing jointly). If you supply a state rate, that flat percentage is applied to the gross bonus as well.

Percentage method vs aggregate method

Employers may use either of two IRS-approved approaches. The percentage method (used here) applies the clean 22% flat rate. The aggregate method adds the bonus to your latest regular paycheck and withholds as if that combined amount were your normal pay - which can push withholding well above 22% temporarily. Either way, the difference is reconciled on your tax return, so neither method changes the tax you ultimately owe.

Withholding is not your final tax

The single most important thing to understand: the 22% is withholding, not your final tax bill. When you file, the bonus is taxed at your real marginal rate based on total income. The 2025 standard deduction is $15,000 (single) / $30,000 (married filing jointly), and ordinary income runs through the 10%-37% brackets. To see which bracket your total income lands in, run it through the Tax Bracket Calculator, and to estimate your full-year liability use the Income Tax Calculator. If 22% was more than you owe on that income, the excess comes back as a refund; if your bracket is higher, you may owe a bit more.

Smart ways to keep more of a bonus

• Route it into a 401(k): pre-tax contributions (2025 limit $23,500, plus $7,500 catch-up at 50+) lower the income that's ultimately taxed.
• Fund an HSA: $4,300 self-only / $8,550 family in 2025, fully deductible if you have a qualifying health plan.
• Top up an IRA: up to $7,000 ($8,000 if 50+) may reduce taxable income depending on your situation.
• Adjust your W-4: if bonuses routinely cause a big refund or balance due, fine-tune withholding so it matches your actual rate - the Tax Withholding Calculator helps you dial it in.

How to use this calculator

You only need two numbers to get a useful estimate, and a couple more if you want it precise. Work through the fields in order:

1. Bonus amount: enter the gross bonus your employer is paying - the figure before any tax is taken out.
2. Filing status: single or married filing jointly. This sets the threshold for the 0.9% Additional Medicare tax ($200,000 vs $250,000).
3. Year-to-date wages (optional): if you've already earned close to the $176,100 Social Security wage base, entering your YTD pay lets the calculator stop charging the 6.2% on the portion above the cap.
4. State rate (optional): add your state's supplemental wage rate as a flat percentage if you want state withholding folded into the net figure.

The result updates instantly. Read your net (after-tax) bonus at the top, then check the breakdown to see exactly how much went to federal withholding, Social Security, Medicare, and state tax.

Who this calculator is for

Anyone who is about to receive a lump-sum payment taxed as supplemental wages will get a clearer picture here. That includes:

• Employees expecting a year-end, signing, performance, or retention bonus who want to know the real deposit amount.
• Job seekers weighing a signing bonus offer and trying to compare the after-tax value across roles.
• People paid commissions, back pay, or severance, which the IRS also treats as supplemental wages subject to the same flat withholding.
• Anyone planning to redirect a bonus into savings, debt payoff, or a 401(k) and needs the net number to budget against.

A second example: a $50,000 signing bonus

Imagine a $50,000 signing bonus, paid early in the year so you are well under both wage caps, filing single. Federal supplemental withholding is 22% ($11,000). Social Security at 6.2% is $3,100 and Medicare at 1.45% is $725. With no state tax, total withholding is $14,825, leaving a net bonus of about $35,175. If you live in a state that withholds supplemental wages at, say, 5%, that's another $2,500 - dropping your net to roughly $32,675. The flat 22% looks generous next to a high marginal bracket, which is exactly why a large bonus paid this way can leave you owing a little more at filing if your total income lands in the 24% bracket or higher.

Key terms explained

• Supplemental wages: the IRS category for pay outside your regular salary - bonuses, commissions, overtime, severance, awards, and back pay. Special flat-rate withholding rules apply.
• Withholding: the money taken from your pay and sent to the IRS as a prepayment of tax. It is an estimate, not your final bill.
• FICA: the combined Social Security (6.2%) and Medicare (1.45%) payroll taxes, totaling 7.65%, that fund those federal programs.
• Social Security wage base: the annual earnings cap ($176,100 in 2025) above which the 6.2% Social Security tax no longer applies.
• Additional Medicare tax: an extra 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly), withheld by your employer once you cross $200,000.
• Marginal tax rate: the rate that applies to your last dollar of income. This - not the 22% withholding - determines what your bonus ultimately costs at filing.

What changes your net bonus the most

If you adjust the inputs and watch the net figure move, a few factors dominate:

• Bonus size: withholding is proportional until you cross $1,000,000 in supplemental wages, where the federal rate on the excess jumps to 37%.
• State of residence: a few states have no income tax at all, while others withhold supplemental wages at 5%-11%, which can swing the net by thousands on a large bonus.
• Year-to-date earnings: if a late-year bonus pushes you past the $176,100 Social Security cap, the 6.2% drops off the portion above it.
• The Additional Medicare threshold: high earners pay an extra 0.9% on wages over $200,000 / $250,000, nudging the effective rate up.

How the result is used in real life

The net figure from this calculator is the number to plan around - not the headline bonus. If you've earmarked the bonus to pay down a credit card or fund a vacation, budget the after-tax amount so you don't overcommit. It also helps at tax time: if you expect your marginal bracket to exceed 22%, you can set aside the gap now rather than face a surprise balance due in April. And if you're comparing job offers, converting each signing bonus to its after-tax value (and adjusting for the destination state) makes the comparison apples-to-apples instead of headline-to-headline.

State supplemental tax rates vary widely

Federal withholding is the same flat 22% everywhere, but state withholding on a bonus is not. Nine states - including Texas, Florida, Washington, Nevada, Tennessee, and Wyoming - levy no state income tax at all, so a bonus paid there keeps the full state portion. Most other states publish a supplemental wage rate that employers apply to bonuses, often a flat figure separate from the regular withholding tables. These range from roughly 3% to over 10% depending on the state. A few states have no special supplemental rate and instead ask employers to use the standard withholding tables, which is closer to the aggregate method. Because the swing between a 0% state and a double-digit state can be thousands of dollars on a large bonus, entering your state's supplemental rate in the field above gives a far more realistic net figure than assuming federal-only. If you are weighing a move or a relocation offer, the after-tax value of the same bonus can differ markedly from one state to the next.

Timing: when in the year your bonus lands matters

The same dollar bonus can be withheld differently depending on when you receive it. Two timing effects show up in the breakdown. First, the Social Security wage base ($176,100 in 2025) is cumulative across the year: if a December bonus pushes your year-to-date wages past the cap, the 6.2% drops off the portion above it, so a late-year bonus can carry slightly less FICA than an identical one paid in January. Entering your year-to-date wages lets the calculator capture this. Second, a bonus paid in a year when your total income is unusually high - for example you switched to a higher-paying job mid-year - may be taxed at a steeper marginal rate at filing even though it was withheld at the flat 22%. If you have any control over the payout date, comparing the two tax years can occasionally save money, though most employees take the bonus when it is offered. Either way, the flat 22% withholding stays the same; only the final reconciliation on your return changes.

Bonus vs. raise: which is worth more after tax?

A one-time bonus and a permanent raise are taxed under different rules, and the after-tax math is not always intuitive. A bonus is supplemental wages: withheld at the flat 22% (plus FICA) up front, but ultimately taxed at your marginal rate like any other income at filing. A raise is folded into regular pay and withheld through the normal tables on your W-4, spreading the same tax across every paycheck. Over a full year, a $5,000 raise and a $5,000 bonus are taxed almost identically once you file - the headline difference is mostly in the timing and the size of each paycheck's withholding, not the final liability. The real distinction is durability: a raise compounds into future years and future raises, while a bonus is a single event. To compare a salary offer that includes a bonus against one with a higher base, convert both to annual take-home using the Paycheck Calculator alongside this tool.

Limitations and assumptions

This is a planning estimate, not tax advice or a payroll statement. Keep these assumptions in mind:

• It models the IRS percentage method (flat 22% / 37%). If your employer uses the aggregate method, your actual withholding may differ, though it reconciles at filing.
• It shows withholding, not final tax. Your true liability is set on your return based on total income, deductions, and credits.
• State tax is included only if you enter a rate, and it is applied as a flat percentage - some states instead use withholding tables or add local taxes.
• It does not subtract 401(k), HSA, or other pre-tax deductions your employer might take from the bonus before withholding.
• Figures use 2025 tax-year rates and thresholds (filed in 2026); these are updated by the IRS annually.

How it compares to related calculators

This page answers "what will be left of my bonus after tax?" If your question is different, a sister tool fits better:

• To see your full regular paycheck after all deductions, use the Paycheck Calculator.
• To estimate your total federal tax for the year, use the Income Tax Calculator.
• To find which bracket your income falls into, use the Tax Bracket Calculator.
• To estimate a refund or balance due at filing, use the Tax Refund Calculator.
• To see your overall blended rate across all income, use the Effective Tax Rate Calculator.
• To convert a salary offer into take-home pay, use the Salary Calculator.