Bonus Tax Calculator
Reviewed by Hamza Gujjar, Algorithm Architect & Software Developer
Last updated: July 27, 2026
Disclaimer: This calculator is provided for informational and educational purposes only and does not constitute financial, medical, legal, or other professional advice. Always consult a qualified professional before making decisions based on these results.
Why bonuses get taxed differently on your paycheck
The IRS allows employers to withhold a flat 22% federal rate on supplemental wages like bonuses (for amounts up to $1 million in a calendar year), separate from the regular paycheck withholding tables used for standard wages.
Worked example
For a $5,000 bonus:
Federal Withholding = 5000 x 22% = 1,100.00
Net Bonus = 5000 - 1100 = 3,900.0 net (after 1,100.0 federal withholding)
This flat 22% rate is a withholding method only, not necessarily your actual final tax rate on that bonus income - your true tax liability on the bonus is reconciled when filing your annual tax return, where it may come out higher or lower than the 22% withheld depending on your overall tax situation.
This figure does not include state tax withholding, which varies by state. This is informational only, not tax advice - consult a tax professional for your specific situation.