Bonus Tax Calculator
See how much of your bonus you actually take home. The calculator applies the US federal supplemental withholding rate (22%, or 37% above $1 million), Social Security and Medicare with the yearly limits, plus your state and local rates. Or gross up a bonus to hit an exact net amount.
Many states have a flat bonus rate (for example California 10.23%); 0 in states with no income tax.
Used for the Social Security wage base and the extra 0.9% Medicare over $200,000.
Supplemental wages over $1 million in a year are withheld at 37%.
2026: $184,500 (2025: $176,100). Edit for other years.
How to use the Bonus Tax Calculator
- Choose the mode: take-home from a gross bonus, or the gross bonus needed for a net amount.
- Enter the bonus and your state and local supplemental rates.
- Add year-to-date wages so Social Security stops at the wage base and the 0.9% Medicare surtax applies above $200,000.
- Add a 401(k) percentage if part of the bonus goes to your retirement plan.
- Read the take-home amount and the line-by-line withholding breakdown.
How bonuses are taxed in the US
The IRS treats bonuses, commissions and similar payments as supplemental wages. When a bonus is paid separately (or identified separately) from your regular pay, employers can use the percentage method:
- Federal income tax: a flat 22% on supplemental wages up to $1 million in the calendar year, and a mandatory 37% on the part above $1 million.
- Social Security: 6.2% until your total wages for the year reach the wage base ($184,500 for 2026; $176,100 for 2025).
- Medicare: 1.45% on all wages, plus an extra 0.9% Additional Medicare Tax withheld on wages above $200,000 in the year.
- State and local: many states set their own supplemental rate; others use regular withholding tables. A few states have no income tax.
Take-home = bonus − 22% federal − 6.2% Social Security − 1.45% Medicare − state − local
Example: a $10,000 bonus with a 5% state rate and wages under the Social Security limit: $2,200 federal + $620 Social Security + $145 Medicare + $500 state = $3,465 withheld, so you take home $6,535.
Gross-up: to hand someone an exact net amount, divide by one minus the total rate. With 22% + 7.65% and no state tax, a $1,000 net bonus needs $1,000 ÷ (1 − 0.2965) ≈ $1,421.46 gross.
Take-home bonus at common amounts
Percentage method, wages below the Social Security wage base, no 401(k) deferral.
| Gross bonus | Federal (22%) | FICA (7.65%) | Net, no state tax | Net, 5% state |
|---|---|---|---|---|
| $1,000 | $220 | $76 | $704 | $654 |
| $2,500 | $550 | $191 | $1,759 | $1,634 |
| $5,000 | $1,100 | $382 | $3,518 | $3,268 |
| $10,000 | $2,200 | $765 | $7,035 | $6,535 |
| $25,000 | $5,500 | $1,912 | $17,588 | $16,338 |
| $50,000 | $11,000 | $3,825 | $35,175 | $32,675 |
Withholding is not the final tax bill. Your bonus is added to your income on your annual return and taxed at your actual bracket, so if 22% is more than your marginal rate you get the difference back, and if it is less you may owe.
Frequently asked questions
How much tax is taken out of a bonus?
Under the federal percentage method, 22% is withheld for federal income tax, plus 6.2% Social Security and 1.45% Medicare, then any state and local tax. Without state tax, about 29.65% is withheld, so a $5,000 bonus nets about $3,517.
Why is my bonus taxed at 22%?
22% is the IRS flat withholding rate for supplemental wages up to $1 million a year. It is a withholding rate, not a special tax rate: on your tax return the bonus is taxed at your normal bracket, so you may get a refund or owe the difference.
What happens to bonuses over $1 million?
Supplemental wages above $1 million in a calendar year must be withheld at the highest income tax rate, 37%, no matter what your W-4 says. Enter bonuses already paid this year so the calculator applies 37% to the correct portion.
What is the aggregate method?
Instead of the flat rate, the employer adds the bonus to a regular paycheck and withholds as if the combined amount were your normal pay for that period. Because that looks like a much higher annual salary, the withholding on that check is often higher than 22%.
Is a bonus subject to Social Security and Medicare?
Yes. Bonuses are wages for FICA. Social Security (6.2%) stops once your total wages for the year reach the wage base ($184,500 in 2026), while Medicare (1.45%) has no cap and an extra 0.9% is withheld on wages above $200,000.
How do I gross up a bonus?
Divide the desired net amount by (1 − total withholding rate). With 22% federal, 7.65% FICA and no state tax, a $1,000 net bonus requires about $1,421.46 gross. Use the gross-up mode to include state tax and the wage limits automatically.
Does a 401(k) contribution reduce bonus taxes?
A traditional 401(k) deferral reduces federal and most state income tax withholding on the bonus, but not Social Security and Medicare. Roth contributions do not reduce withholding.