Payroll & contractors
Bonus Tax Withholding Calculator
What actually comes off a bonus, and why 22% is a withholding rate rather than the tax you owe — the difference is refunded or billed at filing.
| Bonus | $10,000.00 |
|---|---|
| Federal withholding22% flat | −$2,200.00 |
| Social Security6.2% | −$620.00 |
| Medicare1.45%, no cap | −$145.00 |
| State withholding | −$0.00 |
| Net | $7,035.00 |
This is withholding, not tax owed. Your bonus is ordinary income and is settled at your real marginal rate when you file — if that rate is below 22% the difference comes back as a refund, and if it is above you will owe more. No part of a bonus is taxed at a special rate.
Details people get wrong
- Is my bonus taxed at 22%?
- No. 22% is a withholding rate, not a tax rate. Your employer sets that much aside; your actual liability is worked out on your return, where the bonus is simply part of your income. If your marginal rate is below 22% you get the difference back. If it is above, you owe more. Nothing about a bonus is taxed at a special rate.
- Why did so much come off?
- Beyond the 22% federal withholding, a bonus is also subject to Social Security and Medicare, plus state and local withholding where applicable. Those stack, which is why a bonus can arrive looking almost halved even though the eventual tax on it is far lower.
- What triggers the 37% rate?
- Cumulative supplemental wages above $1,000,000 in a calendar year. Only supplemental wages count toward the threshold — bonuses, commissions, severance — so a large regular salary does not push you into it.
- Is there another method?
- Yes. Employers may instead use the aggregate method, combining the bonus with regular wages and withholding as though it were one payment. That usually withholds more, and it depends on your W-4. This calculator uses the flat percentage method, which is what most employers apply to a separately identified bonus.