Bonus Tax Withholding Calculator
Estimate tax withheld and take-home on a bonus using the flat supplemental-wage method, including federal supplemental rate and payroll tax.
How to use this tool
- Enter your gross bonus amount.
- Set the federal supplemental rate (22% in the US, 37% above $1M).
- Add a state rate if applicable and confirm the payroll rate.
- Read federal, state, and payroll withholding and your take-home.
Find out how much of your bonus you actually keep. This uses the flat supplemental-wage method: enter the bonus and the federal, state, and payroll rates to see withholding and take-home.
Formula
Federal withholding = Bonus × Supplemental rate
State withholding = Bonus × State rate | Payroll tax = Bonus × Payroll rate
Take-home = Bonus − (Federal + State + Payroll)
This models the flat supplemental-wage method, where a bonus is taxed at a flat rate rather than blended into regular wages.
How it works
Bonuses are treated as supplemental wages, and many payroll systems withhold tax on them using a flat rate rather than your regular paycheck withholding tables. In the United States the flat federal supplemental rate is 22% (rising to 37% on supplemental wages above $1 million in a year). This calculator applies a flat federal rate, an optional flat state rate, and payroll tax (the employee share of Social Security and Medicare) to your bonus to estimate what is withheld and what you keep.
All three rates are editable so the tool fits different states and tax years; set the federal rate to 37% for the portion of very large bonuses above the $1 million threshold. Remember that withholding is not the same as your final tax: if the flat rate is higher or lower than your true marginal rate, the difference is reconciled when you file your return. The Social Security wage cap is not modeled, so a bonus that pushes year-to-date wages over the cap may have slightly less payroll tax than shown.
Reviewed by the AbraCalc Tax Desk. This calculator provides general information, not tax advice; confirm current rates and rules with your tax authority (for the United States, the IRS).
Worked example
$10,000 bonus, 22% federal, 5% state, 7.65% payroll
- Federal withholding = 10,000 × 22% = 2,200.
- State withholding = 10,000 × 5% = 500.
- Payroll tax = 10,000 × 7.65% = 765.
- Total withheld = 2,200 + 500 + 765 = 3,465.
- Take-home = 10,000 − 3,465 = 6,535.
Bonus take-home = $6,535.00 (total withheld $3,465.00)
Bonus take-home by amount (22% federal, 5% state, 7.65% payroll)
| Bonus | Total withheld | Take-home |
|---|---|---|
| $1,000 | $346.50 | $653.50 |
| $2,500 | $866.25 | $1,633.75 |
| $5,000 | $1,732.50 | $3,267.50 |
| $10,000 | $3,465.00 | $6,535.00 |
| $15,000 | $5,197.50 | $9,802.50 |
| $20,000 | $6,930.00 | $13,070.00 |
| $50,000 | $17,325.00 | $32,675.00 |
Key terms
- Supplemental wages
- Pay outside regular wages, such as bonuses, commissions, and severance.
- Flat supplemental rate
- A fixed withholding rate applied to supplemental wages (22% federal in the US).
- Withholding vs. tax owed
- Withholding is an estimate collected upfront; your actual tax is settled when you file.
- Aggregate method
- An alternative where the bonus is added to regular pay and withheld using normal tables.
Frequently asked questions
- Why is so much withheld from my bonus?
- Bonuses use the flat supplemental method (22% federal in the US) plus state and payroll taxes, which can exceed your everyday paycheck withholding. If that rate is higher than your true marginal rate, you get the excess back when you file.
- Is the 22% the actual tax on my bonus?
- No, it is a withholding rate, not your final tax. Your bonus is ordinary income taxed at your marginal rate; any over- or under-withholding is reconciled on your tax return.
- What if my bonus is over $1 million?
- In the US, supplemental wages above $1 million in a year are withheld at the top federal rate of 37%. Set the supplemental rate to 37% for that portion to estimate it.