Bonus Tax Calculator
Bonuses are 'supplemental wages' in IRS language, and employers usually withhold them with a simple flat federal rate of 22% (for bonuses under $1 million). Add FICA and here is exactly what lands in your account.
If your year-to-date wages already exceeded the $184,500 Social Security cap, your real take-home will be higher than shown here - the calculator assumes the common case.
How the calculation works
Take-home = bonus − (22% federal + 6.2% Social Security + 1.45% Medicare)
Worked example on a $7,500 bonus: $1,650 federal, $465 Social Security, $108.75 Medicare - total deductions $2,223.75, leaving $5,276.25. The combined deduction is 29.65 cents per dollar, before any state tax your state adds on top.
Frequently asked questions
Why is my bonus taxed so high?
The 22% flat federal withholding feels steep compared with your normal bracket, especially under the 22% line. But withholding is not the final tax - when you file your return, the bonus is taxed as ordinary income and anything over-withheld comes back as a refund.
What is the supplemental tax rate for bonuses in 2026?
Employers may withhold a flat 22% federal on supplemental wages under $1 million (IRS Publication 15-A). Bonuses above $1M use the highest marginal rate of 37% on the excess.
How much of a $10,000 bonus do I actually get?
With the flat method: 22% federal ($2,200), 6.2% Social Security ($620), 1.45% Medicare ($145). Total $2,965, leaving a take-home of about $7,035.
Can I avoid taxes on my bonus?
You cannot skip them, but you can redirect them: ask to defer the bonus into a 401(k)/HSA where allowed, or simply adjust your W-4 elsewhere since the over-withholding returns at filing time.