FREE CALCULATOR · MONEY

Bonus Tax Calculator

A $10,000 bonus is not a $10,000 deposit. Employers withhold federal tax at a flat 22%, then Social Security and Medicare take their cut, then your state — before you see a dollar. Enter your numbers to see exactly where every dollar of the bonus goes.

How much of your bonus survives taxes?

Enter the bonus, your filing status, and your marginal federal rate — the bar splits every dollar into what you keep and what each tax takes, and the comparison shows whether the 22% withholding is too much or too little for you.

Bonus amount (gross)

Annual, performance, or sign-on bonus before any tax.

Wages earned so far this year

Excluding this bonus. Drives the Social Security cap math.

SingleMarried filing jointly

Your federal marginal rate

Tax on your next dollar of income — sets your actual bill.

State tax rate %

Your state's income tax rate. Flat planning estimate.

Pre-tax 401(k) % of bonus

Bonus routed to your 401(k). Cuts income tax, not FICA.

State rate:

Estimated net bonus take-home$7,035.00Of a $10,000 bonus you keep $7,035.00 (70.3%) · federal withheld at the flat 22% supplemental rate — estimated.

Where every dollar of the bonus goes. Change any input and watch the money move.

Withheld$2,200Flat 22% supplemental rate

+$0withholding vs. actual bill

Actual tax$2,200At your marginal rate

Your estimated net bonus is $7,035.00 — about 70.3% of the gross $10,000. Enter your numbers above for a verdict on your withholding.

Estimated bonus stub

$10,000.00

Pre-tax 401(k)−$0.00

Federal tax withheld (22%)−$2,200.00

Social Security (6.2%)−$620.00

Medicare (1.45%)−$145.00

State tax−$0.00

Net bonus (estimated)$7,035.00

Simplified US supplemental-wage estimate for planning only — not tax advice.

How it works: net bonus = bonus − federal withholding − Social Security − Medicare − state tax − pre-tax 401(k). Federal withholding uses the flat 22% supplemental-wage rate (for total supplemental wages under $1M per employer). Social Security is 6.2% of the bonus up to the 2026 $184,500 wage base — wages you have already earned this year count toward the cap. Medicare is 1.45% of the full bonus, plus 0.9% on wages over $200,000 single / $250,000 joint. A pre-tax 401(k) contribution lowers the amount subject to federal and state withholding, but it does not reduce Social Security or Medicare tax. The 22% is withholding, not your actual tax — your real bill is the bonus × your marginal rate, settled when you file. All figures are estimates for planning, not tax advice.

How bonus taxes are calculated

Bonuses feel overtaxed because two separate systems take their cut at once. First, your employer must withhold federal income tax on the bonus as "supplemental wages" — a flat 22% (up to $1M in supplemental pay per year per employer). Second, payroll taxes apply to the bonus exactly like regular pay: 6.2% Social Security on the part under the wage base, 1.45% Medicare on every dollar. Then your state takes its share. None of this is your actual tax bill — the 22% is a prepayment, and the real number is whatever your marginal bracket says, settled at filing.

The formulas

net bonus = bonus − 22% withholding − Social Security − Medicare − state tax − pre-tax 401(k) · Social Security = 6.2% × bonus under the $184,500 wage base · Medicare = 1.45% × full bonus (+0.9% over $200k single / $250k joint)

Because 401(k) money is still subject to payroll taxes, only the federal and state slices shrink when you route bonus dollars to retirement — Social Security and Medicare do not care. That is why the 401(k) bar in the chart is smaller than it looks at first glance.

Worked example: $5,000 bonus, single, no state tax

Start with a $5,000 gross bonus, filing single, $0 earned so far this year, 0% state tax, and no 401(k) contribution.

1. Federal withholding: 22% of $5,000 = $1,100.

2. Social Security: 6.2% of $5,000 = $310 (far under the $184,500 wage base).

3. Medicare: 1.45% of $5,000 = $72.50.

4. The deposit: $5,000 − $1,100 − $310 − $72.50 = $3,517.50. You keep 70.3% of the headline number — and if your marginal rate is only 12%, about $500 of that withholding comes back at filing.

Where this comes in handy

Reading your bonus letter: translate a $10,000 bonus into the deposit before you spend it in your head — then feed the net into the savings goal calculator to see what it can actually fund.
Timing a big year: if your salary has already passed the $184,500 Social Security wage base, the bonus skips the 6.2% hit entirely — enter your year-to-date wages above to see.
401(k) planning: routing bonus dollars to retirement cuts the federal and state withholding on them — the take-home pay calculator shows the same trick on regular pay.
Comparing offers: a $15,000 bonus is not $15,000 of value — pair the net figure with your true hourly rate to price an offer honestly.
Learning the rules: the free how bonuses are taxed guide walks through withholding methods, the 22% rule, and the refund math — step by step.

Bonus Tax Calculator — frequently asked questions

Is the 22% on my bonus my actual tax, or just withholding?

Just withholding — a prepayment. The IRS lets employers withhold a flat 22% on supplemental wages (bonuses, commissions, severance) instead of figuring your bracket. Your actual tax on the bonus is whatever your marginal rate says, and the difference is settled at filing: too much withheld means a refund, too little means you owe.

Does the 22% cover Social Security and Medicare too?

No — those are separate and come out on top. A bonus pays the same payroll taxes as regular wages: 6.2% Social Security (up to the $184,500 wage base for 2026) and 1.45% Medicare with no cap. The calculator above applies both, which is why the net is well below 78% of the gross.

Why was more withheld when my bonus came in my regular paycheck?

Two methods, same final bill. A bonus paid on a separate check gets the flat 22% treatment; a bonus lumped into a regular paycheck is run through the aggregate method, which annualizes the bigger check and can withhold much more up front. Either way it all reconciles at filing — the separate-check method just stings less in the moment.

What if my salary plus bonus is already over the Social Security cap?

Then no Social Security tax on the excess — Social Security stops at $184,500 of total wages for 2026, while Medicare never stops. Enter your wages earned so far this year in the calculator and it applies the cap automatically: a late-year bonus for a high earner can dodge the 6.2% entirely.

Can I put bonus money in my 401(k) to pay less tax?

Usually yes — if your employer's plan document lets you contribute from a bonus, routing bonus dollars into a pre-tax 401(k) shrinks the federal and state withholding on them. But it does not reduce Social Security or Medicare tax, so the savings are income tax only. Try it above: add 10% and watch the income-tax bars shrink while the FICA bars stay put.

What if my marginal rate is lower than 22%?

Then you are over-withheld and the extra comes back at filing. A 12% bracket on a $5,000 bonus owes $600 of federal tax but has $1,100 withheld — about $500 of free money in the refund, minus the interest-free loan you gave the government in the meantime.

What if my marginal rate is higher than 22%?

Then the flat withholding under-covers you and you will owe at filing. At a 32% marginal rate a $10,000 bonus carries a $3,200 real federal bill against $2,200 withheld — a $1,000 shortfall to plan for, unless your regular-paycheck withholding already covers it.

Are bonuses over $1 million taxed differently?

For withholding, yes: the flat rate jumps to 37% on supplemental wages above $1 million per year per employer. Your actual tax is still whatever your marginal bracket says. This calculator uses the 22% rate, which covers virtually every bonus that is not C-suite sized.

Learn the method: the free how to calculate taxes on a bonus guide walks through the supplemental-wage rules, the 22% flat rate, FICA math, and the refund-at-filing mechanics — step by step.