Bonus Tax Calculator

This bonus tax calculator estimates the net amount of a supplemental wage payment (bonus, commission, or one-time award) after federal flat-rate withholding, state income tax, and the employee share of FICA (Social Security and Medicare). The IRS requires employers to withhold a flat 22% on supplemental wages up to $1 million annually using the percentage method, which means the bonus is taxed at a fixed rate rather than added to your regular paycheck and pushed into higher brackets. The 22% rate is a withholding rate, not your actual final tax rate: if your marginal bracket is lower than 22%, you will receive a refund of the over-withheld amount when you file; if your marginal bracket is higher, you may owe additional tax. FICA (6.2% Social Security + 1.45% Medicare) also applies to bonuses as a flat additional withholding on top of the federal rate. Use this calculator to estimate what you will actually receive when you receive a bonus and to decide whether it is worth spending or saving. Key limitations include treating the flat 22% as your actual tax rate rather than a withholding mechanism, not accounting for other income that might already be near the $1M threshold, and ignoring state-specific bonus tax rules that may differ from the assumed flat state rate.