Bonus Tax Withholding Calculator
When employers pay supplemental wages such as bonuses separately from regular paychecks, the IRS allows the flat-rate withholding method: 22% on bonus amounts up to $1 million and 37% on any amount above $1 million in the calendar year. Social Security and Medicare (FICA) taxes are also withheld at their standard rates. This calculator shows the federal income tax withheld, FICA taxes withheld, and your net bonus take-home after all withholding. It does not include state income tax withholding, which varies by state.
Bonus withholding formula
Federal tax = min(bonus, max(0, $1,000,000 - prior wages)) * 0.22
+ max(0, bonus + prior wages - $1,000,000) * 0.37
SS withheld = min(bonus, max(0, $176,100 - prior wages)) * 0.062
Medicare withheld = bonus * 0.0145
Net bonus = bonus - federal tax - SS withheld - Medicare withheld
The 22% rate applies to the portion of the bonus within the $1 million threshold; the 37% rate applies to any overage. Social Security is only withheld on bonus wages that fall within the annual SS wage base of $176,100.
Supplemental wage withholding rules
- Bonuses are considered supplemental wages when paid separately from a regular paycheck and the employer identifies the payment as a bonus.
- Employers may alternatively use the aggregate method, which applies the payroll withholding tables to the combined regular-plus-bonus payment.
- Your actual tax owed on a bonus may be higher or lower than 22%, depending on your total annual income and marginal bracket.
- State income tax is not included in this calculator. Many states withhold at a flat supplemental rate (e.g., California at 10.23%, New York at 11.7%).
- Non-cash bonuses such as gift cards and employer-provided awards are generally also subject to supplemental wage withholding at their fair market value.
Bonus tax withholding: frequently asked questions
What is the federal supplemental withholding rate for bonuses?
The IRS flat supplemental withholding rate is 22% for bonus payments up to $1 million. For the portion of a bonus exceeding $1 million in a calendar year, the rate rises to 37%. These rates apply under the flat-rate method described in IRS Publication 15.
Are there other methods for withholding on bonuses?
Yes. The aggregate method combines your bonus with your most recent regular paycheck and applies the payroll withholding tables to the total, then subtracts the tax already withheld. The flat-rate method (22% or 37%) is simpler and is the most common approach employers use for separately identified supplemental wages.
Does my state also withhold tax on my bonus?
Most states with an income tax also withhold on bonuses. State rates vary widely; some use a flat supplemental rate while others apply the same graduated tables used for regular wages. This calculator covers federal withholding only.
Will my bonus be taxed at 22% on my tax return?
Withholding at 22% does not set your actual tax rate on the bonus. At year end, your bonus is added to all other income and taxed at your marginal rate. If your marginal rate is lower than 22%, you may receive a refund of over-withheld amounts.
What other taxes are withheld from a bonus?
In addition to federal income tax withholding, Social Security (6.2%) and Medicare (1.45%) are withheld from bonuses, subject to the same annual wage base limits that apply to regular wages.
Official sources
- IRS: Publication 15 (Employer's Tax Guide), Supplemental Wages.
- IRS: Topic 751 - Social Security and Medicare Withholding Rates.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.