Bonus Tax Calculator: Withholding From a Bonus Payment
Work out the federal tax withheld from a bonus payment under the supplemental wages rule — the reason your bonus check rarely matches the gross figure your employer announced.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Federal supplemental withholding | Bonus net of federal withholding |
|---|---|---|
| 22% of $5,000 | 1,100 | 3,900 |
| 22% of $15,000 | 3,300 | 11,700 |
| 37% of $1,500,000 | 555,000 | 945,000 |
| 22% of $1,200 (small bonus) | 264 | 936 |
How This Calculator Works
Enter the gross bonus and the supplemental withholding rate (22% under US federal rules; 37% on the portion of bonuses above $1M in a year). The calculator multiplies the two to give the federal withholding and shows the net bonus before FICA payroll tax and any state withholding.
The Formula
Percentage of an Amount
Amount is the base value, Percentage is the rate applied to it
Worked Example
On a $5,000 bonus at the 22% federal supplemental rate, $1,100 is withheld for federal income tax, leaving $3,900 before FICA and state. After FICA (7.65%) and a typical 5% state withholding, the actual take-home is closer to $3,260 — about 65% of the gross.
Key Insight
Supplemental withholding at 22% is often higher than the marginal income tax rate of low- and middle-income earners — which is why many people see a 'tax refund' on bonuses at year-end. The flat-rate withholding is just a payment-time estimate; the actual tax owed depends on total income for the year and is reconciled when you file.
Frequently Asked Questions
How is bonus tax withheld?
Most US employers use the percentage method — a flat 22% federal withholding on bonuses up to $1M a year, 37% on the portion above. Some use the aggregate method, which folds the bonus into regular pay and withholds at the implied marginal rate.
Is 22% the actual tax I owe?
No — it is the withholding rate, not the final tax. Your actual federal tax depends on total annual income. Many earners see a 'refund' at year-end if 22% overshoots their marginal rate.
Does this include FICA and state tax?
No. FICA payroll tax (7.65%) and state income tax also apply to a bonus. Add them separately for the full deduction; the calculator covers federal supplemental withholding only.
Why does my bonus feel taxed twice as much?
It is not — the supplemental rate is just higher than many people's marginal rate. The over-withholding usually comes back as a year-end refund when actual tax is calculated.
Can I avoid the supplemental rate?
Not really at withholding time. If the 22% overshoots your bracket, you receive the difference back at tax time. Some employers will use the aggregate method on request, which can lower upfront withholding for low-bracket earners.
Related Calculators
Methodology & Review
US federal supplemental wages — including bonuses — are withheld at a flat 22% (37% over $1 million in a year) under the percentage method. State withholding and FICA payroll tax also apply but are calculated separately. The figure here is the federal supplemental withholding only.
Written by Ugo Candido · Last updated May 17, 2026.