Bonus Tax Calculator
Bonuses are supplemental wages, so employers usually withhold a flat 22% for federal income tax (37% on the portion of supplemental wages above $1 million in a year), plus 7.65% FICA and your state's supplemental rate. That withholding is not your final tax bill — it is a prepayment that gets trued up when you file — but it decides how much of the bonus hits your account on payday.
Quick answer: A $10,000 bonus is withheld at 22% federal ($2,200), 7.65% FICA ($765) and your state's supplemental rate — leaving roughly $6,200–$7,000 net in most states, and about $7,035 in the nine states with no income tax.
| Gross bonus | $10,000.00 |
| Federal supplemental withholding (22%)prepayment — your real tax is set at filing | − $2,200.00 |
| FICA (6.2% SS + 1.45% Medicare) | − $765.00 |
| State supplemental (custom 5%) | − $500.00 |
| Net bonus | $6,535.00 |
Withholding-level estimate. The 22% federal rate is a prepayment, not your final tax — excess withholding is refunded when you file. FICA of 7.65% assumes you are under the Social Security wage base for the year. Not tax advice.
| Federal withholding | Flat 22% supplemental rate (37% above $1M cumulative supplemental wages) |
|---|---|
| FICA | 7.65% of the full bonus (6.2% Social Security + 1.45% Medicare) |
| State | 0% in AK/FL/NV/NH/SD/TN/TX/WA/WY; ~2.5%–10.23% elsewhere (estimate) |
| Not your tax bill | 22% is withholding — your actual tax is computed on your return |
The 22% rule and the $1 million threshold
Under the percentage method for supplemental wages, employers withhold 22% of a bonus for federal income tax. Once an employee's supplemental wages exceed $1 million in a calendar year, the excess must be withheld at 37%. Both rates are pure withholding: your actual liability is whatever your total income produces on Form 1040, so employees whose effective bracket is below 22% recover the difference at filing.
What this calculator estimates
We apply the 22% federal supplemental rate, 7.65% FICA (Social Security 6.2% up to the annual wage base plus Medicare 1.45% uncapped), and your state's supplemental withholding rate where one is published. Nine states levy no wage income tax and are shown as 0%. Progressive-tax states are approximated with an editable rate. The output is a paycheck-level estimate — the number your employer's payroll is most likely to show — not tax advice.
Common uses
- Preview the net amount of a year-end or performance bonus before it lands
- Compare a bonus offer against the equivalent raise after tax
- Check a bonus paycheck that looked smaller than expected
- Plan estimated tax if you are a contractor paid bonuses gross