🎁 Bonus Tax Calculator
Calculate how much of your bonus you'll actually take home after federal, state, and FICA taxes.
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Frequently Asked Questions
How much tax will I pay on my bonus?
Bonuses are typically taxed at a flat 22% federal rate (37% for bonuses over $1 million) using the percentage method. You also pay state tax and 7.65% FICA tax. Total tax is usually 30-40% depending on your state.
What is the percentage vs. aggregate method?
The percentage method taxes bonuses at a flat 22% federal rate. The aggregate method adds your bonus to a regular paycheck and calculates tax based on that total, which can result in higher or lower withholding depending on your tax bracket.
Will I get a refund if too much tax was withheld?
Yes! Bonus withholding is just an estimate. When you file your tax return, the IRS calculates your actual tax liability based on your total annual income. If too much was withheld from your bonus, youll get a refund.
Can I reduce taxes on my bonus?
Yes, you can reduce taxable income by maximizing 401(k) contributions, contributing to an HSA, making charitable donations, or having your employer split the bonus across multiple pay periods (though withholding rates remain the same).
Why does my bonus tax seem so high?
Bonuses use a simplified withholding method that often overwithhholds. Your bonus isnt actually taxed at a higher rate - its just supplemental income. At tax time, your actual tax is calculated on total income and you may get a refund.
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.