Calculate how much of your bonus you'll actually take home
Standard IRS flat rate is 22%
401(k), HSA, etc.
Bonus After Tax (Take-Home)
$0.00
0% of bonus
Bonus Amount
$0.00
Total Tax
$0.00
Federal Tax
$0.00
State Tax
$0.00
FICA Tax
$0.00
Effective Tax Rate
0%
A bonus tax calculator is a specialized financial tool that helps you determine exactly how much of your bonus you'll actually receive after all applicable taxes and deductions are subtracted. Bonuses are taxed differently from regular wages, and many employees are surprised when their $5,000 bonus results in only $3,500 hitting their bank account.
Understanding bonus taxation is crucial for financial planning. Whether you receive an annual performance bonus, a sign-on bonus, a holiday bonus, or a retention bonus, knowing your actual take-home amount helps you make informed decisions about spending, saving, and investing.
Bonus tax calculators account for the unique IRS rules that apply to supplemental wages. These rules can result in a flat 22% federal withholding rate or an aggregate rate based on your regular income, depending on how your employer processes the bonus payment.
Bonuses are classified by the IRS as "supplemental wages" — income paid in addition to your regular wages. The IRS provides two methods for employers to calculate federal tax withholding on supplemental wages:
Under this method, employers withhold a flat 22% on bonuses up to $1 million. Any bonus amount above $1 million is subject to a higher 37% withholding rate. This is the most common method because it's simpler for employers to implement and doesn't require combining bonus with regular pay.
This method combines your bonus with your regular pay for the pay period and calculates withholding on the total amount using standard IRS tax tables. This can result in higher or lower withholding depending on your regular income level and the bonus amount. Some employers use this method when paying small bonuses alongside regular paychecks.
Beyond federal withholding, bonuses are also subject to other deductions:
Supplemental wages include bonuses, commissions, overtime pay, severance pay, back pay, and certain fringe benefits. The IRS treats these differently from regular wages because they're irregular and unpredictable. The 22% flat rate is designed to simplify withholding for both employers and employees.
However, it's important to understand that withholding is not the same as actual tax liability. When you file your tax return, your bonus is simply added to your total income and taxed at your marginal rate. If the 22% flat withholding was too high, you'll receive a refund. If it was too low (e.g., you're in the 35% bracket), you may owe additional taxes.
Let's calculate the take-home from a $5,000 bonus using the flat rate method:
| Bonus Amount | $5,000.00 |
| Federal Tax (22%) | −$1,100.00 |
| State Tax (5%) | −$250.00 |
| Social Security (6.2%) | −$310.00 |
| Medicare (1.45%) | −$72.50 |
| Total Deductions | −$1,732.50 |
| Take-Home Bonus | $3,267.50 |
This means you'll keep approximately 65.35% of your $5,000 bonus.
The percentage of your bonus you actually keep depends on several factors:
In general, you can expect to keep 60-70% of your gross bonus amount. For example, a $10,000 bonus typically results in $6,000-$7,000 take-home. A $1,000 bonus results in approximately $600-$700 take-home.