Bonus Tax Calculator

The IRS treats bonuses as supplemental wages. Employers typically withhold a flat 22% federal rate on bonuses up to $1 million. FICA taxes (Social Security and Medicare) also apply, bringing total withholding to roughly 30% before any state taxes.

The federal supplemental withholding rate is 22% for bonuses up to $1 million. Bonuses exceeding $1 million are withheld at 37% on the excess. These are withholding rates, not final tax rates — your actual liability depends on your total annual income.

You cannot change the withholding rate your employer uses, but you can reduce your overall tax liability by maximizing 401(k) contributions, HSA contributions, or other pre-tax deductions. If too much was withheld, you get the difference back when you file your return.

Yes. The 22% is the federal supplemental wage withholding rate. Most states add their own withholding on top — rates vary from 0% in states with no income tax (like Texas and Florida) to over 13% in California. Use the state withholding field above to estimate the combined impact.

Yes. Bonuses are added to your total ordinary income when you file. The flat 22% is only a withholding convenience — your actual tax rate depends on your tax bracket. You may owe more or receive a refund depending on your full-year earnings.