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Salary & Taxes
Bonus Tax Calculator — Federal, FICA & State Withholding on Your Bonus
Why your bonus check looks so much smaller than the number on the offer letter
Getting a bonus feels great — until the check lands and a big chunk is gone. That's because the IRS treats a bonus as supplemental wages, and employers withhold tax on it differently than on your regular paycheck. This calculator estimates the federal, FICA (Social Security + Medicare) and state withholding on a U.S. bonus so you can see your real take-home amount before payday.
The most common method is the percentage (flat-rate) method. The IRS sets a flat 22% federal supplemental rate on bonuses up to $1 million, and 37% on any portion above $1 million. On top of federal income tax, your bonus is still wages, so FICA applies: 6.2% Social Security (up to the annual wage base) and 1.45% Medicare (no cap). Many states also withhold their own supplemental rate.
The formula (percentage method):
• Federal withholding = bonus × 22% (or 37% on the part over $1M) • Social Security = bonus × 6.2% • Medicare = bonus × 1.45% • State = bonus × your state rate • Take-home = bonus − all of the above
Worked example: On a $10,000 bonus in a state with a 5% supplemental rate, federal is 10,000 × 0.22 = $2,200, Social Security is 10,000 × 0.062 = $620, Medicare is 10,000 × 0.0145 = $145, and state is 10,000 × 0.05 = $500. Total withheld = $3,465, so you take home $6,535 — an effective withholding rate of 34.65%.
The second option is the aggregate method, where the employer lumps the bonus into a regular paycheck and withholds based on your W-4 and tax brackets. This often withholds more up front because it bumps the combined amount into a higher bracket for that pay period.
Here's the mistake almost everyone makes: withholding is not your final tax bill. That 22% flat rate is just an estimate your employer sends to the IRS. When you file your return, your bonus is taxed at your real marginal rate. If 22% was too much, you get it back as a refund; if your bracket is higher (say 24%, 32% or 35%), you may owe the difference. Use this tool to plan around the check you'll actually receive — not to predict your final tax owed. The figures here are estimates for general guidance, not tax advice.
📖 See also: How Are Bonuses Taxed in 2025?
Calculator
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📰 Formula
• Federal = bonus × 22% (and 37% on any portion over $1,000,000) • Social Security = bonus × 6.2% • Medicare = bonus × 1.45% • State = bonus × state rate (%) • Total withheld = Federal + Social Security + Medicare + State • Take-home = bonus − Total withheld
📰 Formula
• Federal = bonus × 22% (and 37% on any portion over $1,000,000) • Social Security = bonus × 6.2% • Medicare = bonus × 1.45% • State = bonus × state rate (%) • Total withheld = Federal + Social Security + Medicare + State • Take-home = bonus − Total withheld
🧪 Worked examples
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⚠️ Common mistakes
- Thinking the 22% flat rate is your final tax — it's only withholding; you reconcile at filing.
- Forgetting FICA: 6.2% Social Security + 1.45% Medicare apply on top of income tax.
- Applying 37% to the whole bonus — the higher rate only hits the portion above $1 million.
- Ignoring state supplemental withholding, which several states add on top of federal.
💡 Tips
- If your real marginal bracket is above 22%, set aside extra cash so you're not surprised at tax time.
- Maxing your 401(k) or HSA from a bonus can lower the income tax that applies to it.
- The aggregate method can withhold more up front — but any over-withholding comes back as a refund.
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❓ Frequently asked questions
How much tax is taken out of a bonus?
Under the IRS percentage method, employers withhold a flat 22% for federal income tax (37% on amounts over $1 million), plus 6.2% Social Security and 1.45% Medicare. State withholding may also apply, so total withholding is often 30%+ of the bonus.
Why is my bonus taxed at 22%?
The IRS classifies bonuses as supplemental wages and lets employers withhold a flat 22% on them rather than running them through your normal W-4 brackets. It's a withholding rate, not your final tax rate.
Is a bonus taxed higher than regular pay?
Not necessarily. It's often withheld at a flat 22%, which can be more or less than your regular paycheck withholding. Your actual tax owed on the bonus is settled when you file, based on your total income and bracket.
What is the difference between the percentage and aggregate methods?
The percentage method applies a flat 22% federal rate to the bonus alone. The aggregate method adds the bonus to a regular paycheck and withholds using your W-4 and brackets, which usually pulls more tax up front.
Will I get some of my bonus tax back?
Possibly. The 22% flat withholding is just an estimate. If your real marginal rate is lower — or if too much was withheld — you'll get the difference back as a refund when you file your return.
Does Social Security and Medicare come out of a bonus?
Yes. A bonus is still wages, so FICA applies: 6.2% for Social Security (up to the annual wage base) and 1.45% for Medicare with no cap. High earners may also owe an extra 0.9% Medicare surtax.
How is a bonus over $1 million taxed?
The first $1 million of supplemental wages is withheld at 22% federal; any amount above $1 million is withheld at 37%. FICA and state rules still apply to the full amount.
Do all states tax bonuses?
No. States with no income tax — such as Texas, Florida and Washington — don't withhold state tax on bonuses. Others apply a flat supplemental rate or use their regular withholding tables.
Can I avoid tax on my bonus?
You can't avoid it, but you can reduce the income tax that applies by directing some of the bonus into pre-tax accounts like a 401(k) or HSA. FICA still applies, and this is general info — not tax advice.