Introduction
A bonus feels great until you see how much is taken out. This bonus calculator shows you what you actually keep. Type in your bonus amount, pick your state, and see your take-home pay right away.
The IRS calls a bonus a "supplemental wage." That means it can be taxed in a different way than your normal paycheck. This tool covers all three common ways employers do it:
- Flat Rate: A straight 22% federal tax on your bonus (37% on any part over $1 million). Most employers use this one.
- Aggregate: Your bonus is added to your last paycheck, then taxed as one lump sum.
- Marginal: Your bonus sits on top of your yearly pay and is taxed at your real tax bracket.
The calculator also takes out Social Security, Medicare, and state tax. You can add 401(k) contributions, health insurance, and other deductions too. You get a full breakdown, a chart, and step-by-step math so you can see exactly where each dollar goes.
How to use our Bonus Calculator
Enter your bonus amount, pick how your employer taxes it, and add your tax details. The calculator shows your federal tax, state tax, FICA, deductions, and your net take-home bonus, plus a step-by-step breakdown.
Calculation Method: Pick how your bonus is taxed. Choose Flat Rate for the standard 22% IRS supplemental rate, Aggregate if your bonus is paid with your regular check, or Marginal (Annual) to tax the bonus on top of your yearly pay.
Bonus Amount: Type the full gross bonus you were promised, before any tax or deductions.
Quick-select buttons: Tap a preset amount like $1,000 or $10,000 to fill the bonus box fast.
Pay Period Frequency: Choose how often you get paid: weekly, bi-weekly, semi-monthly, monthly, or yearly. This shows only for the Aggregate and Marginal methods.
Gross Earnings Per Pay Period: Enter your normal paycheck amount before deductions. This tells the calculator which tax bracket your total pay lands in.
Filing Status: Pick Single, Married Filing Jointly, or Head of Household. This sets your federal tax brackets.
State: Choose the state you live in. Bonus tax rates change by state, and some states take no income tax at all.
My W-4 Form Version: Pick Post-2020 W-4 if you filled out the newer form. Pick Pre-2020 W-4 if your form still uses allowances.
Withholding Allowances: If you use a pre-2020 W-4, enter how many allowances you claimed. More allowances mean less federal tax is withheld.
Pre-Tax Deductions: Enter money taken out before tax, like health insurance or an FSA. This lowers your taxable bonus. Health savings dollars work the same way.
Retirement Contribution (Pre-Tax %): Enter the percent of your bonus going to a 401(k), 403(b), or 457 plan.
Post-Tax Deductions: Enter money taken out after tax, like Roth 401(k), union dues, or garnishments.
Post-Tax Reimbursements: Enter any expense money added to your check. It is not taxed and is added to your take-home pay. Mileage payments are a common example.
Calculate and Reset: Results update as you type, but you can press Calculate any time. Press Reset to start over with the default values.
What Is a Bonus?
A bonus is extra money your employer pays you on top of your normal wages. It can be a holiday bonus, a signing bonus, a performance award, commission, or back pay. The IRS calls this money supplemental wages, and it is taxed just like your regular pay. The difference is how the tax is taken out of your check.
How Bonus Taxes Work
Your employer must hold back money from your bonus for taxes. That money is called withholding. It is only an estimate of what you owe. When you file your tax return, the IRS adds your bonus to the rest of your income and figures your real tax bill with the income tax calculator rules. If too much was held back, you get a refund. If too little was held back, you pay the rest.
The Three Ways a Bonus Can Be Taxed
- Flat rate (percentage method): Your employer takes a flat 22% federal tax from the bonus. Any part of a bonus over $1,000,000 in one year is taxed at 37%. This is the most common method because it is simple. It works best when the bonus is paid on its own check.
- Aggregate method: Your employer adds the bonus to your last regular paycheck, treats the whole thing like one normal check, and figures the tax on that bigger amount. Then it subtracts the tax on your normal pay. What is left is the bonus tax. This method often holds back more money, because the combined check looks like a much bigger paycheck.
- Marginal (annual) method: The bonus is stacked on top of your yearly income. The tax is based on the bracket your total income lands in. This is the closest guess at what you will really owe at tax time.
Other Money Taken Out of a Bonus
Federal income tax is not the only bite. Your bonus is also hit by:
- Social Security tax: 6.2% of your wages, up to the yearly wage base ($184,500 for 2026). After you pass that limit, this tax stops for the year.
- Medicare tax: 1.45% of all wages, with no limit. An extra 0.9% is added once your wages pass $200,000.
- State income tax: Rates change a lot by state. Some states use a special supplemental rate for bonuses. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming take nothing from your wages.
Deductions That Change Your Take-Home Bonus
Pre-tax deductions like health insurance or an FSA come out before income tax is figured, so they lower your taxable bonus. 401(k) or 403(b) contributions also lower your federal and state taxable pay, but you still pay Social Security and Medicare on that money. Post-tax deductions, such as Roth 401(k) or union dues, come out after taxes and do not lower your tax. Reimbursements are added back to your check and are not taxed at all.
Why Your Bonus Feels Smaller Than Expected
A $10,000 bonus rarely puts $10,000 in your bank account. Between the 22% federal rate, 7.65% for FICA, and state tax, it is normal to keep only about 60% to 70% of the gross amount. Nothing is wrong with your check. Bonuses are not taxed at a higher rate than your other income in the end. The effective tax rate calculator shows what you truly pay across all your income. They just have more money held back up front, and much of it can come back as a refund.