Bonus Tax Calculator
Find out what you actually take home from a bonus, and why the number on your cheque looks smaller than you expected.
Sets your marginal rate and whether Social Security is already capped.
from a $10,000 bonus · 29.6% withheld
- Federal withholding (22%)−$2,200
- Social Security (6.2%)−$620
- Medicare (1.45%)−$145
- Texas income taxNone
That 22% is a withholding rate, not your tax rate. If your actual bracket is lower, the difference comes back as a refund when you file for 2026 — and if it is higher, you will owe the rest.
How to Use the Bonus Tax Calculator
Enter your bonus amount
Type the gross bonus before any tax. The result updates as you type — there is no calculate button.
Add your annual salary
This sets your marginal bracket for the aggregate method and tells the calculator whether you have already hit the Social Security wage cap for the year.
Pick your state
Many states publish their own flat supplemental withholding rate for bonuses, which is what this uses. Nine states take nothing at all.
Choose the withholding method
Percentage is the common case where the bonus arrives as its own payment. Switch to aggregate if your employer folded it into a normal paycheque.
Pro tip: Your data is processed entirely in your browser. Nothing is sent to any server, ensuring complete privacy.
Why your bonus looks so heavily taxed
The single most common misunderstanding about bonuses is that they are taxed at a higher rate than salary. They are not. A bonus is ordinary income and ends up taxed at exactly the same marginal rates as the rest of your pay. What changes is how it is withheld on the day.
The IRS classifies a bonus as supplemental wages. When an employer pays one separately from a regular cheque, it may use the percentage method: a flat 22% federal withholding, regardless of whether you are a 12% filer or a 32% filer. Add 6.2% Social Security, 1.45% Medicare and your state’s supplemental rate, and it is normal to see 30% or more disappear from a bonus in a high-tax state.
The alternative is the aggregate method, where the bonus is added to a normal paycheque and the whole amount is withheld at the rate that combined figure implies. This typically withholds even more up front, because a single large cheque looks like a very high annual salary to the withholding tables.
Either way it evens out at filing. If the flat 22% took more than your bracket required, the excess comes back as a refund. If you are in a higher bracket, it under-withheld and you will owe the difference. Bonuses above $1 million in a calendar year are the exception: the excess carries mandatory 37% federal withholding.
Frequently asked questions
Why was my bonus taxed at 22%?
Because the IRS treats a bonus as supplemental wages. When it is paid separately from your regular cheque, employers may withhold a flat 22% for federal tax regardless of your actual bracket. It is a withholding rate, not a tax rate — the difference is settled when you file.
Are bonuses taxed higher than regular pay?
No. Bonuses are ordinary income and taxed at the same rates as your salary. What differs is the withholding: the flat 22% supplemental rate often takes more (or less) than your real bracket, which is why the cheque looks wrong even though the annual tax is identical.
What is the difference between the percentage and aggregate methods?
The percentage method applies a flat 22% federal rate to the bonus on its own. The aggregate method lumps the bonus in with a regular paycheque and withholds on the combined amount at your marginal rate, which usually withholds more up front. Your employer chooses which to use.
Will I get some of my bonus tax back?
If the 22% flat rate exceeded your actual marginal rate, yes — it comes back as a larger refund or a smaller balance due. If you are in the 24%, 32% or higher bracket, the flat rate under-withheld and you will owe the difference at filing.
Do bonuses over $1 million get taxed differently?
Yes. Supplemental wages above $1 million in a calendar year are subject to mandatory 37% federal withholding on the excess, and employers have no choice about which method to use.
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