Bonus Paycheck Tax Calculator
Calculate how much you'll take home from a bonus paycheck. Understand bonus taxation with flat supplemental rates vs marginal method.
Bonus Amount
Enter your one-time bonus payment
Taxation Method
Choose how your bonus is taxed
Most employers use the flat supplemental rate method (22% federal withholding).
Location
Where you work
Filing Status
Your tax filing status
Pay Frequency
How often you receive regular paychecks
Enter your bonus amount to see your take-home pay estimate.
Understanding Bonus Taxation
Bonuses are typically taxed differently than regular income. Most employers use the flat supplemental rate method, which applies a fixed 22% federal withholding rate (or 37% for bonuses over $1 million) regardless of your tax bracket.
This flat rate is often higher than your effective tax rate, which is why bonuses can seem more heavily taxed than regular paychecks. However, when you file your annual tax return, the actual tax you owe is calculated based on your total income and tax bracket, not the withholding rate.
In addition to federal taxes, bonuses are also subject to:
- State taxes: Varies by state, with some states using flat supplemental rates and others calculating based on total income
- FICA taxes: Social Security (6.2% up to the wage base) and Medicare (1.45% base, plus 0.9% additional for high earners)
Use the calculator above to see how much you'll actually take home from your bonus after all taxes and deductions.
Frequently Asked Questions
Bonuses are typically taxed at a flat federal supplemental rate of 22% (or 37% for bonuses over $1 million), plus state taxes and FICA taxes (Social Security and Medicare). This flat rate withholding is often higher than your effective tax rate, which is why bonuses can seem more heavily taxed than regular income.
The flat supplemental rate method applies a fixed 22% federal withholding rate to your bonus regardless of your tax bracket. The marginal method adds your bonus to your regular income and calculates taxes on the combined amount. Most employers use the flat rate method because it's simpler, but it often results in over-withholding.
Bonuses are often withheld at a flat 22% federal rate, which may be higher than your effective tax rate on regular income. Additionally, if your bonus pushes your total income above certain thresholds, you may hit the Social Security wage base limit or additional Medicare tax thresholds, affecting the percentage withheld.
Yes, if your bonus was over-withheld using the flat supplemental rate method, you'll receive a refund when you file your annual tax return. The actual tax you owe on the bonus is calculated based on your total annual income and tax bracket, not the withholding rate.
Yes, bonuses are subject to FICA taxes just like regular wages. Social Security tax (6.2%) applies up to the wage base limit ($168,600 for 2024), and Medicare tax (1.45% base, plus 0.9% additional for high earners) applies to all bonus income.
State tax withholding on bonuses varies by state. Some states use a flat supplemental rate similar to the federal method, while others calculate state tax based on your total income including the bonus. States without income tax (like Texas, Florida, and Washington) don't withhold state taxes on bonuses.
You can't avoid taxes on bonuses, but you can reduce your tax liability by contributing to pre-tax retirement accounts (like a 401(k)) or health savings accounts (HSA) if your employer allows bonus deferrals. However, most employers process bonuses separately and don't allow these deductions.
For bonuses over $1 million, the federal supplemental withholding rate increases from 22% to 37%. This higher rate applies only to the portion of the bonus above $1 million. The first $1 million is still taxed at 22%.