Bonus Tax Calculator
Calculate how much of your bonus you'll take home after federal withholding, FICA taxes, and state taxes. See the difference between withholding and actual tax owed.
Bonus Details
Calculate tax on your bonus for 2025
Bonus After Tax
Your bonus breakdown for 2025
Net Bonus (Actual Tax)
$6,105
From $10,000 gross bonus
Effective Tax Rate
39.0%
Marginal Rate
22%
Withholding vs Actual Tax
Employer Withholding (Flat Rate)
What You Actually Owe
The flat 22% withholding is less than your actual tax rate. You may owe additional taxes when you file.
Total Income
$85,000
Salary + Bonus
You Keep
61.1%
Of your bonus
Total Tax
$3,895
Federal + State + FICA
Understanding Bonus Tax in the US
How Bonuses Are Taxed
Bonuses are classified as "supplemental wages" by the IRS. Employers can either withhold at a flat rate or use the aggregate method (adding bonus to regular wages and calculating tax on the total).
Bonus Tax Rates 2025:
- • Federal withholding: 22% flat rate
- • Bonuses over $1M: 37% flat rate
- • Social Security: 6.2% (up to wage base)
- • Medicare: 1.45% (+ 0.9% over $200k)
- • State taxes: varies by state
Tips to Reduce Bonus Tax
401(k) Contributions
Increase your 401(k) contribution to reduce taxable income. Some employers let you direct bonus amounts directly to retirement accounts.
HSA Contributions
If you have a high-deductible health plan, HSA contributions reduce both income tax AND FICA taxes, unlike 401(k).
Defer to Next Year
If possible, request your bonus be paid in January if you expect lower income next year.
Frequently Asked Questions
How are bonuses taxed in the United States?
The IRS considers bonuses "supplemental wages." Employers typically withhold at a flat 22% rate for federal taxes (37% for amounts over $1 million). FICA taxes (Social Security 6.2% + Medicare 1.45%) are also deducted. Your actual tax liability is determined when you file your return.
Why does my bonus seem more heavily taxed than my salary?
Your regular paycheck withholding accounts for your standard deduction spread across the year. Bonuses are often withheld at the flat 22% supplemental rate regardless of your actual bracket. If you're in a lower bracket, you'll get a refund. If you're in a higher bracket (32% or more), you may owe additional tax.
What is the 22% bonus withholding rate?
The IRS allows employers to use a flat 22% withholding rate for supplemental wages (bonuses, commissions, overtime) up to $1 million per year. This simplifies payroll but may not match your actual tax bracket. For bonuses over $1 million, the rate increases to 37%.
Can I reduce tax on my bonus?
Yes! Contribute more to your 401(k) - traditional 401(k) contributions reduce taxable income. You can also contribute to an HSA if eligible, or time your bonus to a year when your income is lower. Some employers allow you to direct part of your bonus to retirement accounts.
Will I get a refund if my bonus was over-withheld?
Yes. If the 22% withholding rate is higher than your actual marginal tax rate, you'll receive a refund when you file your tax return. For example, if you're in the 12% bracket but had 22% withheld, you'll get the 10% difference back.