Bonus tax calculator

How it works

When a bonus is paid on its own check, IRS Publication 15 lets employers withhold a flat 22% federal income tax, or 37% on supplemental wages over $1,000,000 in a year. Social Security (6.2%) applies until your wages for the year reach $184,500, and Medicare (1.45%, plus 0.9% above $200,000) applies to all of it. Most states publish a matching flat supplemental rate, which this calculator applies; a few use only the aggregate method, where the bonus is added to your regular wages and withheld on the total.

Withholding is a prepayment. If 22% is more than your actual bracket, the difference comes back at filing, and vice versa.

Frequently asked

Are bonuses taxed at 40%?

No. The 22% federal supplemental rate plus 7.65% FICA plus a typical state rate lands most people between 30% and 35% withheld, and the real tax on a bonus is whatever your marginal bracket is once you file.

Can I put my bonus in my 401(k)?

Often yes, if your plan allows deferrals from bonuses. That removes the deferred amount from federal and most state income tax withholding, though not from Social Security and Medicare. This calculator does not model it.