Bonus Tax Calculator
See exactly how much of your bonus you'll take home after taxes
💡 How Bonuses Are Taxed
Most employers use the flat 22% federal withholding rate for bonuses (supplemental wages). This is simpler than calculating based on your actual tax bracket. For bonuses over $1 million, the rate is 37%.
Your actual tax liability is determined when you file your return. If too much was withheld, you'll get a refund. If too little, you may owe.
| Tax Type | Amount |
|---|---|
| Federal Withholding (22%) | $1,100 |
| Social Security (6.2%) | $310 |
| Medicare (1.45%) | $72.50 |
| Additional Medicare (0.9%) | $0 |
| State Tax | $107.50 |
| Total Taxes | $1,590 |
Based on annual income of $80,000
📚 Understanding Bonus Taxes
Why Does My Bonus Seem So Taxed?
Bonuses aren't taxed at a higher rate—they're just withheld at a flat 22% for simplicity. Your actual tax depends on your total annual income. Many people get some of this back as a refund.
The 22% Flat Rate Method
The IRS allows employers to withhold a flat 22% on supplemental wages (bonuses, commissions, overtime) up to $1 million. Over $1 million, the rate jumps to 37%.
FICA on Bonuses
Social Security (6.2%) and Medicare (1.45%) apply to bonuses just like regular wages. SS tax stops once you hit the wage base ($184,500 in 2026). High earners pay an extra 0.9% Medicare tax.
Getting Money Back
If your marginal bracket is lower than 22%, you'll likely get a refund when filing. If it's higher (24%+), you may owe a bit more. The withholding is just an estimate.
❓ Frequently Asked Questions
Is my bonus taxed at a higher rate than my salary?
No. Bonuses are taxed as ordinary income at your marginal rate. The 22% withholding is just for convenience—your actual tax rate depends on your total income for the year.
Can I reduce taxes on my bonus?
Yes! You can maximize pre-tax 401(k) contributions, HSA contributions, or time the bonus (if possible) to a year with lower income. Charitable donations can also offset taxable income.
What if my employer uses the aggregate method?
Some employers combine your bonus with your regular paycheck and calculate withholding on the total. This can result in higher withholding but you'll reconcile when you file your return.
Do I pay FICA if I've already maxed out Social Security?
Once your year-to-date earnings exceed $184,500 (2026), you stop paying the 6.2% Social Security tax on additional income. Medicare tax (1.45%+) continues on all earnings.