Bonus tax calculator: estimate take-home pay from a bonus using the 22% flat federal rate, FICA, and state tax, or find the gross bonus for a target net.
Bonus Tax Formula
The calculator estimates the tax withheld from a bonus using the percentage (flat rate) method that most employers apply to supplemental wages:
W = federal supplemental withholding + state withholding + Social Security + Medicare + Additional Medicare
Your take-home bonus is what remains after withholding:
N = B - W - C
Variables:
- W is the total tax withheld from the bonus
- B is the gross bonus amount
- F is the permitted optional 22% federal supplemental withholding rate up to $1,000,000 of supplemental wages for the year; the excess is subject to 37%. The entered prior supplemental wages determine the split. A custom rate below the threshold approximates employer withholding
- S is your combined state and local tax rate as a decimal
- Social Security is 6.2% of bonus wages up to the remaining 2026 $184,500 wage base; Medicare is 1.45% of all bonus wages, plus employer withholding of 0.9% above $200,000 of Medicare wages. Prior wages entered are used to split a bonus at those thresholds
- N is the net (take-home) bonus and C is any 401(k) contribution taken from the bonus
Choose what you want to solve for at the top. In gross-to-net mode you enter the bonus from your offer or payout notice and the tool shows the estimated deposit. In net-to-gross mode you enter the take-home you want and the tool works backward to the gross bonus your employer would need to pay, which is useful for negotiating a relocation payment or a make-whole bonus. A traditional 401(k) contribution entered under Advanced reduces federal and state withholding but not Social Security or Medicare.
Bonus Withholding by State Tax Rate
This table shows the estimated take-home from a $5,000 bonus using the 22% flat federal rate plus 7.65% FICA at different state tax rates.
| State rate | Total withholding | Take-home bonus | Effective rate |
|---|---|---|---|
| 0% | $1,482.50 | $3,517.50 | 29.65% |
| 3% | $1,632.50 | $3,367.50 | 32.65% |
| 5% | $1,732.50 | $3,267.50 | 34.65% |
| 7% | $1,832.50 | $3,167.50 | 36.65% |
| 9% | $1,932.50 | $3,067.50 | 38.65% |
| 11% | $2,032.50 | $2,967.50 | 40.65% |
Common gross bonuses and their approximate take-home with no state tax:
| Gross bonus | Federal (22%) | FICA (7.65%) | Take-home |
|---|---|---|---|
| $1,000 | $220.00 | $76.50 | $703.50 |
| $2,500 | $550.00 | $191.25 | $1,758.75 |
| $5,000 | $1,100.00 | $382.50 | $3,517.50 |
| $10,000 | $2,200.00 | $765.00 | $7,035.00 |
| $25,000 | $5,500.00 | $1,912.50 | $17,587.50 |
| $50,000 | $11,000.00 | $3,825.00 | $35,175.00 |
Example Problems
Example 1: Take-home from a $5,000 bonus in a state with a 5% income tax.
Federal withholding is 5,000 * 0.22 = $1,100. State withholding is 5,000 * 0.05 = $250. Social Security and Medicare take 5,000 * 0.0765 = $382.50.
N = 5,000 – 1,100 – 250 – 382.50 = $3,267.50, an effective withholding rate of about 34.7%.
Example 2: Gross bonus needed to take home $10,000 with no state tax.
The combined withholding rate is 0.22 + 0.0765 = 0.2965, so the net factor is 1 – 0.2965 = 0.7035.
B = 10,000 / 0.7035 = $14,214.64. Checking forward: 14,214.64 minus 22% federal and 7.65% FICA leaves $10,000.
Frequently Asked Questions
Are bonuses really taxed at a higher rate?
No. Bonuses are withheld at a flat 22% federal rate, which can be higher or lower than your normal paycheck withholding, but when you file your return the bonus is taxed as ordinary income at your regular brackets. If 22% was more than your true marginal rate, the difference comes back as a refund; if it was less, you may owe the difference.
What is the aggregate method?
If your bonus is paid inside a regular paycheck rather than as a separate check, the employer may withhold using the aggregate method: the combined paycheck is annualized and withheld as if it were your normal wage. This often withholds more up front than the 22% flat method, but your final tax bill for the year is identical either way. Use the custom federal rate option to approximate it.
Why is my bonus check missing more than 22%?
Because federal income tax is only one piece. Social Security (6.2%) and Medicare (1.45%) come out of a bonus just like regular wages, plus any state and local income tax and any 401(k) percentage you have set to apply to bonuses. Together these commonly push total withholding to 30% to 40%.
Rules reviewed October 20, 2026. 2026 payroll limits and supplemental-wage methods follow IRS Publication 15, sections 7 and 9. Social Security and Medicare wage histories may differ. This tool estimates one employer payment and does not determine final Additional Medicare liability or enforce retirement-plan contribution limits.
