Bonus Tax Calculator
- Take-home
- Federal income tax
- Social Security + Medicare
- State
Withholding is a prepayment, not the final tax. At filing the bonus is taxed with the rest of your income, so you may get some back or owe more.
How the bonus tax calculation works
How much tax is withheld from a bonus and what you take home, or the gross bonus an employee needs to net a set amount.
Federal tax: a flat rate on the bonus
With the percentage method, the employer withholds a flat 22% on supplemental wages. On a $5,000 bonus that is $1,100. Above $1 million in a year, the rate is 37%.
Social Security: 6.2% up to the wage base
On $5,000 that is $310. Once your wages for the year pass the wage base, no more is withheld.
Medicare: 1.45% on all of it
$72.50 on $5,000. Wages over $200,000 in the year have another 0.9% withheld.
State tax: your state's rate
Many states have a flat supplemental rate; some have no income tax. At 5%, $5,000 has $250 withheld.
Grossing up: solve for the gross
To net $5,000 at a 34.65% total rate, the bonus must be $5,000 ÷ (1 − 0.3465) = $7,651.11.
Worked example. A $5,000 bonus with $60,000 already paid this year has $1,100 federal, $310 Social Security, $72.50 Medicare and $250 state tax withheld at 5%. The employee nets $3,267.50, and the bonus costs the employer $5,382.50.
Bonus Tax FAQ
How much tax is taken out of a bonus?
Usually 22% federal plus 7.65% for Social Security and Medicare, plus any state tax. That is about 30% before state tax, more if you earn over the thresholds.
What is the difference between the percentage and aggregate method?
With the percentage method, the bonus is paid separately and withheld at a flat 22%. With the aggregate method, the bonus is added to a regular paycheck and withholding is figured on the total as if you earned that much every period, which often withholds more.
Why was my bonus taxed so much?
Usually because the employer used the aggregate method, which treats the bonus as a regular paycheck and applies a higher bracket. The extra withholding is credited when you file your tax return.
Are bonuses taxed at a higher rate?
No. A bonus is ordinary income and is taxed at your normal rates when you file. Only the withholding differs, and it may be more or less than your actual tax.
How do I gross up a bonus?
Divide the net amount you want by 1 minus the total withholding rate. Choose net amount in the calculator and it solves this, including the wage base and $1 million limits.
What is the supplemental tax rate for 2026?
The federal flat rate on supplemental wages such as bonuses and commissions is 22% up to $1 million in a year and a mandatory 37% on the part above $1 million (IRS Pub. 15, section 7). Social Security (6.2% up to the wage base) and Medicare (1.45%, plus 0.9% over $200,000) apply on top.
How is a bonus taxed in California?
California withholds a flat supplemental rate on bonuses on top of federal withholding. Enter the current California rate in the state field; check the EDD site for it.
Sources: IRS: Publication 15 (2026), section 7 Supplemental Wages · IRS: Topic 751, Social Security and Medicare withholding rates · SSA: Contribution and benefit base · IRS: Questions and answers for the Additional Medicare Tax