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Bonus Tax Calculator

Take-home from a bonus, flat method vs aggregate.

Take-home from bonus (flat method)
$6,535
Withheld: $3,465

Flat (supplemental) method

Federal 22% flat

  • Federal: $2,200
  • FICA (7.65%): $765
  • State: $500
  • Net: $6,535

Aggregate / true tax method

Treated as additional ordinary income

  • Federal: $2,400
  • FICA (7.65%): $765
  • State: $500
  • Net: $6,335

Likely under-withheld by $200 (refunded or owed at tax time)

IRS rules let employers withhold supplemental wages at a flat 22% (37% above $1M) or aggregate the bonus into your normal paycheck. Your actual tax owed is the same either way - the difference settles when you file.

About

Bonuses get withheld at a flat 22 percent federal (37 percent above 1M), regardless of your bracket. Most people see a bigger paycheck on a bonus than expected. This tool compares the flat-withholding amount to what you'd actually owe at tax time.

How to use

  1. Enter the bonus amount.
  2. Enter your federal marginal rate.
  3. Add state tax.

FAQ

Is my bonus taxed at a higher rate?+

No. It's withheld at a flat rate. Your actual tax is the same as on regular wages, settled when you file.

Why does my paycheck look so cut?+

Federal flat withholding is 22 percent. Add FICA (7.65 percent) and state tax. If your marginal rate is below 22 percent, the over-withholding comes back as a refund.