Bonus Tax Withholding on a $100,000 Executive Bonus
Estimates withholding on a $100,000 bonus using the supplemental method for high-income executives.
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.
High-value bonuses above $1 million are taxed at 37%, but up to $1 million the 22% supplemental rate applies at the federal level.
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.