Bonus Tax Calculator: How Much Will My Bonus Be After Taxes?
What actually lands in your account from a bonus, and why the 22% your employer withholds usually isn't the tax you really owe.
Updated October 2026
Data verified for 2026. Educational estimates only, not financial or tax advice.
| Withheld now | Actual tax on the bonus | |
|---|---|---|
| Federal income tax | $1,100.00 | $1,100.00 |
| Social Security + Medicare | $382.50 | $382.50 |
| State income tax | $0.00 | $0.00 |
| Total | $1,482.50 | $1,482.50 |
Withholding is a prepayment, not the final tax. Any difference is settled on your return.
| Bonus | Withheld | Take-home |
|---|---|---|
| $1,000 | $297 | $704 |
| $2,500 | $741 | $1,759 |
| $5,000 | $1,483 | $3,518 |
| $10,000 | $2,965 | $7,035 |
| $25,000 | $7,413 | $17,588 |
Are bonuses taxed at a higher rate?
No. A bonus is ordinary income and is taxed at exactly the same rates as your salary when you file. What confuses people is withholding: the IRS treats bonuses as *supplemental wages*, and employers are allowed to withhold a flat 22% federal tax on them (37% on supplemental wages above $1 million in a year) instead of using your W-4. That flat rate is often higher than what the bonus actually costs you, which is why bonuses feel over-taxed and often produce a bigger refund.
On top of federal withholding, a bonus always carries Social Security (6.2%) and Medicare (1.45%), plus state income tax where your state has one. That's why the total bite is usually 30%–40% even though the federal piece is 22%.
Percentage method vs. aggregate method
- Percentage (flat-rate) method. Used when the bonus is paid as a separate check. Federal withholding is a flat 22%, regardless of your salary. Simple, and the most common.
- Aggregate method. Used when the bonus is added to a regular paycheck. Payroll adds the bonus to that period's wages, annualises the total, works out withholding on that amount, and subtracts what would normally be withheld. For high earners this can withhold *more* than 22%; for lower earners, less.
Switch the toggle above to see the difference for your numbers. If you're not sure which your employer uses, look at a previous bonus pay stub: exactly 22% federal means the percentage method.
Will you get some of it back?
The comparison table shows withholding next to the tax the bonus actually adds at your income. If your marginal federal rate is 12% and 22% was withheld, the difference comes back as a refund. If you're in the 24%, 32%, or 35% bracket, flat 22% withholding leaves you short, and the balance is due in April. High earners are often surprised by this; the calculator flags it.
Legal ways to keep more of a bonus
- Defer part of it into your 401(k). Most plans allow a separate bonus deferral election. It removes the amount from federal and state income tax now (Social Security and Medicare still apply). Use the 401(k) slider above.
- HSA contribution, if you're on a high-deductible plan: exempt from income tax *and* FICA when done through payroll.
- Timing. If a bonus is discretionary and you expect a lower-income year ahead, ask whether it can be paid in January instead of December.
- Don't count on a flat 22% being the end of the story: check the table, and if you're under-withheld, set the difference aside.
Frequently asked questions
How much of a $5,000 bonus will I take home?+
With the flat 22% federal method and 7.65% FICA, about $3,518 in a state with no income tax. In a state with a 5% income tax it's closer to $3,268. Enter your state above for an exact figure.
Why was 22% taken out of my bonus?+
That's the IRS flat supplemental withholding rate for bonuses paid separately from regular wages. It's a withholding rule, not a tax rate; your actual tax is settled when you file.
Are bonuses taxed twice?+
No. A bonus is taxed once, as ordinary income. It can feel double-taxed because withholding is higher than your usual paycheck rate, but any excess comes back as a refund.
Do I pay Social Security and Medicare on a bonus?+
Yes, 6.2% Social Security (up to the $184,500 wage base for 2026) and 1.45% Medicare, plus 0.9% additional Medicare above $200,000. Putting the bonus in a 401(k) does not avoid these.
Can I put my whole bonus into my 401(k)?+
Often yes, up to the annual deferral limit ($24,500 in 2026) and whatever your plan allows. It eliminates income tax withholding on that portion, though FICA still applies.