Bonus Tax Calculator
Estimate your net bonus after federal taxes.
Enter your bonus amount and filing status to see what you'll actually take home.
Bonus tax withholding is calculated differently from regular salary withholding in the US. The IRS allows two methods: the flat rate method (simplest) and the aggregate method (more precise). Understanding which your employer uses helps you predict your take-home amount after bonus withholding.
Flat rate method formula: Federal Withholding = Bonus Amount × 22% (for bonuses up to $1 million) Federal Withholding = $220,000 + (Bonus − $1,000,000) × 37% (for bonuses over $1 million)
Aggregate method formula:
- Add bonus to regular paycheck for the pay period
- Calculate withholding on the combined amount using normal tax tables
- Subtract the withholding already calculated on the regular paycheck
- The remainder = bonus withholding
Total deductions from bonus: Net Bonus = Gross Bonus − Federal Withholding − State Withholding − Social Security − Medicare
Where:
- 22% flat rate — the supplemental wage flat rate (2024)
- Social Security = 6.2% (on wages up to $168,600 for 2024)
- Medicare = 1.45% (plus additional 0.9% on wages over $200,000)
- State withholding — varies by state (0% in TX, FL, NV; up to 13.3% in CA)
Worked example: Employee in California receives a $10,000 year-end bonus. Already earning $85,000/year.
- Federal withholding (flat 22%): $10,000 × 0.22 = $2,200
- California state tax (approx. 9.3%): $10,000 × 0.093 = $930
- Social Security (6.2%): $10,000 × 0.062 = $620
- Medicare (1.45%): $10,000 × 0.0145 = $145
Total withheld: $3,895 Net bonus received: $10,000 − $3,895 = $6,105
Note: The 22% flat withholding may over- or under-withhold depending on your actual marginal tax bracket. Any difference is reconciled when you file your tax return.