Bonus Tax Calculator
Calculate how much of your flat bonus will be withheld for taxes. This calculator helps you estimate federal, state, and FICA taxes on bonus payments.
Bonus After Taxes: $0.00
Total taxes withheld: $0.00
| Tax Type | Amount | Percentage |
|---|---|---|
| Federal Income Tax | $0.00 | 0% |
| Social Security Tax | $0.00 | 0% |
| Medicare Tax | $0.00 | 0% |
| State Income Tax | $0.00 | 0% |
| Additional Federal | $0.00 | 0% |
| Additional State | $0.00 | 0% |
About Bonus Tax Calculator
Bonus payments are considered supplemental wages by the IRS and are subject to different withholding rules than regular wages. This calculator helps you estimate how much of your bonus will be withheld for taxes.
How Bonus Taxes Are Calculated
There are two methods employers can use to withhold federal taxes from bonuses:
- Percentage Method: A flat 22% federal tax is withheld (37% for bonuses over $1 million)
- Aggregate Method: The bonus is added to your regular paycheck and withheld at your normal rate
In addition to federal taxes, bonuses are subject to:
- Social Security tax (6.2% up to the wage base limit)
- Medicare tax (1.45%, plus 0.9% for high earners)
- State income tax (varies by state)
Why Bonuses Are Taxed Differently
Bonuses are considered supplemental income by the IRS. While they're ultimately taxed at your marginal tax rate when you file your return, employers are required to withhold taxes at a higher rate initially to account for the possibility that the bonus could push you into a higher tax bracket.