Money · US
Bonus Tax Calculator
By the Dailycaltor team · formula-verified · last updated July 2026
See what lands in your account from a bonus.
Details
Formula
Most US employers withhold a flat 22% federal tax on bonuses (the supplemental rate), plus 6.2% Social Security and 1.45% Medicare, plus any state tax. Net bonus = bonus × (1 − 0.22 − 0.0765 − state rate).
Worked examples
- $5,000 bonus, no state tax → about $3,518 in hand.
- $10,000 bonus with 5% state tax → about $6,535.
- $1,000 bonus → roughly $700 after typical withholding.
Common mistakes
- Thinking bonuses are “taxed at 40%” — withholding is higher up front, but your real tax settles at your normal rate when you file.
- Forgetting FICA applies to bonuses too.
- Ignoring that 401(k) elections may also apply to bonus checks at some employers.
Source: IRS supplemental wage withholding (22% flat rate). Last updated: July 2026. Educational estimates only.
Questions
How much tax is taken out of a bonus?
Typically 22% federal withholding plus 7.65% FICA, plus state tax — roughly 30% for many people.
Why was my bonus taxed so high?
It was withheld at the flat supplemental rate. If your actual bracket is lower, you get the difference back at tax time.
Is the 22% rate final?
No — it is withholding, not your final tax. Your true rate is set by your total yearly income on your return.
Do bonuses over $1 million withhold differently?
Yes, the portion above $1M withholds at 37% federally.
Can I reduce tax on a bonus?
Contributing bonus money to a traditional 401(k) (if allowed) defers federal income tax on it.
Does this include my exact state rules?
It uses a flat state estimate. Some states set specific supplemental rates — check yours.