How this calculator works
When a bonus is paid separately from regular pay, most employers withhold federal income tax at a flat 22%. Supplemental wages above $1 million in a year are withheld at 37%. These rates are set in IRS Publication 15 and were made permanent in 2025.
Social Security (6.2%) applies until your total wages for the year reach $184,500. Medicare is 1.45% on everything, plus 0.9% on wages above $200,000.
If your 401(k) plan takes contributions from bonuses, they come off before income tax but not before Social Security and Medicare. State withholding uses the rate you enter; many states have their own flat rate for bonuses.
Withholding is only a prepayment. Your real tax on the bonus depends on your tax bracket. The calculator works out the federal tax on your salary with and without the bonus, using 2026 brackets and the standard deduction, and compares the difference with the 22% withheld.
If you are in the 10% or 12% bracket, 22% is more than the bonus adds, and the difference usually comes back as a refund. In the 24% bracket or higher, it is less, and you may owe at tax time.
Worked example
A $5,000 bonus on a $70,000 salary, single
- Federal withholding: 22% × $5,000 = $1,100. Social Security: $310. Medicare: $72.50.
- Take-home with no state tax: $5,000 − $1,482.50 = $3,517.50.
- Actual extra federal tax: the bonus falls in the 22% bracket, so it adds $1,100, the same as was withheld.
- On a $30,000 salary, the same bonus adds only $600 of tax (12% bracket), so about $500 comes back at tax time. On $190,000 a $20,000 bonus adds $4,800 at 24%, $400 more than the $4,400 withheld.
Questions people ask
Are bonuses taxed more than regular pay?
No. Bonuses are taxed as ordinary income at the same rates as salary. Only the withholding method differs, which can make a single bonus check look heavily taxed.
Why was more than 22% taken from my bonus?
Your employer may have used the aggregate method, adding the bonus to a regular paycheck and withholding as if you earned that much every pay period. That often withholds more. The extra comes back when you file if it was more than you owe.
Can I avoid tax on a bonus by putting it in my 401(k)?
If your plan allows contributions from bonuses, the amount you contribute is not subject to federal income tax now, though Social Security and Medicare still apply. Annual 401(k) limits still count.
How is a bonus taxed by my state?
Many states set a flat supplemental withholding rate for bonuses; others use their regular tables. Check your state revenue department and enter the rate.
Sources
Last reviewed October 2, 2026