Bonus Tax Calculator
Estimate the take-home amount of your bonus after federal withholding, FICA and state income tax.
Free · No sign-up · Runs in your browser · Last reviewed November 2026
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About the Bonus Tax Calculator
Employers usually withhold federal income tax on bonuses at a flat 22% supplemental rate (37% on supplemental wages above $1 million in a year). Social Security (6.2% up to the 2026 wage base of $184,500) and Medicare (1.45%) apply as well, plus state income tax where it exists. This bonus tax calculator shows the estimated withholding and the amount you actually take home. Your real tax is settled when you file your return, so you may get some withholding back or owe a little more.
How to use it
- Enter the gross bonus and your year-to-date wages.
- Enter your state income tax rate (0 for states with no income tax) and any 401(k) deferral.
- Press Calculate bonus tax to see withholding and net bonus.
Example
A $5,000 bonus with a 5% state rate: federal 22% is $1,100, Social Security $310, Medicare $72 and state $250, leaving about $3,268 (65.3%).
Two ways employers withhold on bonuses
| Method | How it works |
|---|---|
| Percentage method | Flat 22% federal withholding on the bonus |
| Aggregate method | Bonus is added to regular pay and taxed as one payment, which can withhold more or less |
Ways to keep more of a bonus
- Contribute part of the bonus to your 401(k) before tax.
- Ask whether you can defer it to an HSA or similar benefit.
- Adjust your W-4 if withholding is far from your actual tax.
Bonus tax: a second example and common misunderstandings
Suppose you receive a $12,000 bonus, your state rate is 4%, and you are below the Social Security wage base. Federal withholding at 22% is $2,640, Social Security is $744, Medicare is $174 and state tax is $480. That leaves about $7,962, or 66.3% of the bonus.
Now a case near the wage base. If you have already earned $180,000 this year and get a $20,000 bonus, only $4,500 of it is subject to the 6.2% Social Security tax (the 2026 base is $184,500), so that part is $279. Medicare is $290 and 22% federal withholding is $4,400, leaving about $15,031 before any state tax. High earners should also know that employers must withhold an extra 0.9% Medicare on wages above $200,000.
Common misunderstandings
- A bonus is not taxed at a special higher rate. It is withheld at a flat rate, then reconciled when you file, so a large refund or bill can follow.
- Withholding is not your final tax. If your marginal bracket is higher or lower than 22%, you will settle the difference on your return.
- Pre-tax 401(k) deferrals reduce income tax withholding but not FICA.
To estimate your regular paycheck, see the commission calculator for variable pay.
Frequently asked questions
How much tax is taken out of a bonus?
Federal withholding is typically a flat 22%, plus 7.65% for Social Security and Medicare and any state income tax.
Is a bonus taxed at a higher rate?
The withholding rate is flat, but your actual tax depends on your total annual income and bracket, so it is not taxed at a different final rate.
How much of a $10,000 bonus do I keep?
With 22% federal, 7.65% FICA and 5% state, you keep roughly $6,500.
Can I get the withholding back?
Yes, if too much was withheld you receive it as a refund when you file your tax return.
Do 401(k) contributions reduce bonus tax?
They lower federal and state income tax withholding, but not Social Security or Medicare tax.
Why does my bonus check look smaller than I expected?
Withholding for federal income tax, Social Security, Medicare and often state tax all apply to the bonus, and the 22% flat federal rate can be higher than your usual effective rate. The difference is usually settled when you file your return.
Can I get back over-withheld bonus tax?
Yes. If total withholding for the year exceeds your actual tax liability, the excess comes back as a refund when you file your return.
Last reviewed: November 2026. Estimates only, not tax, legal or financial advice.