Bonus Tax Calculator

Don't be surprised by your paycheck. Estimate the federal and payroll taxes on your bonus using the IRS supplemental tax methods.

Flat 22% is the most common for bonuses under $1 million.
Estimated Net Bonus (Take-Home)
$3,267

Total Tax: $1,733 (34.7%)

Federal Tax
$1,100
FICA (Social/Med)
$383

Why is my bonus taxed so high?

I genuinely believe that "bonus shock" is a real thing. Many people see a huge chunk of their bonus missing and think they're being "overtaxed." In reality, bonuses are classified as **supplemental wages**. Employers use different methods to withhold taxes, which often results in a higher withholding rate than your normal paycheck.

Common Methods:

  • Percentage Method: The IRS allows a flat 22% federal withholding rate for supplemental wages under $1 million. This is simple and what most companies use.
  • Aggregate Method: Your employer adds your bonus to your regular pay and calculates the tax as if it were one big paycheck. This often pushes you into a higher tax bracket for that specific pay period, resulting in higher withholding.

Remember: These are just **withholdings**. If your employer withholds too much, you will get the difference back as a tax refund when you file your returns!