See what actually hits your bank account after a bonus — both IRS withholding methods, FICA, and state tax modeled.
Free bonus-tax calculator. Compare the flat 22% percentage method and the aggregate (bracket-based) method side-by-side, with FICA and a configurable state rate.
Direct answers to the most common questions, in plain language. Skim if you're in a hurry; dig deeper below.
As ordinary income — but withheld differently.
At filing time, a bonus is taxed exactly like the rest of your wages. What's different is the withholding: employers use either a flat 22% federal rate or the "aggregate" method, which adds the bonus to your regular paycheck and withholds at the resulting bracket rate.
Withholding is not your final tax — it's usually higher than your actual rate.
The 22% federal flat rate, plus FICA (7.65%) and state tax, can push withholding above 30% even for moderate earners. At filing time the IRS reconciles based on your actual bracket — if too much was withheld, you get it back as a refund.
Only if your employer chooses it. The other option is the aggregate method.
IRS Publication 15 lets employers pick. The flat 22% (37% above $1M) is most common because it's simpler. Some employers use the aggregate method, which combines the bonus with regular wages and withholds at the resulting bracket.
Defer it into a 401(k), HSA, or other pre-tax account.
Bonuses can usually be directed to your 401(k), reducing the taxable amount this year. Some employers let you choose at the time the bonus is paid. HSA contributions, charitable gifts, and dependent-care FSA top-ups are other options.
The mechanics in short answers — no jargon, no upsell.
The IRS lets employers withhold a flat 22% federal on bonuses up to $1M, and 37% on amounts above. It's simple, but often more or less than your actual marginal rate.
The employer combines the bonus with your regular paycheck for that period and withholds federal income tax based on the resulting bracket. More accurate, but unpredictable.
Both methods add 6.2% Social Security (up to the wage base) and 1.45% Medicare. Once you've crossed the SS wage cap, only the 1.45% Medicare applies to the bonus.
Whatever was withheld is just a deposit. At filing time, your bonus is taxed as regular income — over-withholding becomes a refund, under-withholding becomes a balance due.
Designed so anyone can model their situation in under a minute, with or without a finance background.
Flat 22% percentage method vs. aggregate method, side by side.
The full breakdown — not just one line of withholding.
See exactly what hits your bank account, not just the gross bonus number.
See the bracket your bonus actually fills, so you can plan deferrals or charitable gifts.
If you're past the SS wage base, FICA on the bonus is just Medicare — and the calculator reflects that.
Brackets, FICA limits, and supplemental flat rates use the most recent figures.
Everything you might ask before, during, or after using this tool.
It isn't — at filing time, bonus and salary are both ordinary income. The withholding for bonuses is just calculated differently (the IRS's "supplemental wages" rules), and it usually withholds more than your actual marginal rate. The over-withholding comes back as a refund.
If you're below the annual contribution limit and want to defer current taxes, yes — many employers allow it. It reduces both federal and FICA-eligible wages, and it locks in the bonus as long-term invested capital.
For 2026, it's 22% federal on supplemental wages up to $1M per year, and 37% on amounts above $1M. State supplemental rates vary; some states (CA, NY) have their own supplemental flat rates.
Same as regular wages — 6.2% Social Security up to the $176,100 (2026) wage base, plus 1.45% Medicare on all wages. High earners may also owe an additional 0.9% Medicare on wages above $200,000 (single) or $250,000 (MFJ).
Yes. Enter your year-to-date wages — if the bonus pushes you past $176,100, the SS portion of FICA is calculated only on the portion below the cap.
For tax purposes, almost all employer cash bonuses are supplemental wages and follow the same rules. Non-cash relocation benefits (moving expenses paid directly to a vendor) have their own rules — consult IRS Publication 521.
Yes. IRS rules allow either the flat percentage method or the aggregate method. Most large employers default to the flat 22% for simplicity. The calculator shows both so you know which one applies and what to expect.
Probably some, unless you're in a 32%+ bracket. The 22% flat withholding plus 7.65% FICA covers a 22% bracket precisely, but most bonuses go to people in the 12% or 24% bracket — so over- or under-withholding becomes a refund or balance due at filing.
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The IRS calls bonuses "supplemental wages" and gives employers two ways to handle them. The percentage method (flat 22%) is administratively simple — the same rate for everyone, no payroll-system gymnastics. The aggregate method approximates your actual bracket by pretending the bonus is regular wages.
Neither is "right." Both are estimates of what you'll owe. At filing, your bonus is taxed as ordinary income just like your salary, and any over- or under-withholding is reconciled.
For most people in the 12% bracket, the flat 22% method over-withholds — meaning you'll see a smaller deposit but get a bigger refund later. For people in the 24% or 32% bracket, the aggregate method usually withholds more.
The calculator above shows both numbers. If you have a strong cash-flow preference, you can request that your employer use the other method, though many payroll systems don't make this easy.
Once your year-to-date wages cross $176,100 (2026), no more Social Security is withheld on that year's remaining wages — including bonuses. For high earners getting a Q4 bonus, this can mean 6.2% more in net than the same bonus earlier in the year.
Use the YTD wages field in the calculator to model this accurately.
1) Direct the bonus to your 401(k) (pre-tax). 2) Top up an HSA. 3) Fund an FSA for next plan year if rules allow. 4) Donate to charity in the same calendar year. 5) Bunch deductions (state taxes, mortgage interest) if you can itemize.
These aren't loopholes — they're the same options that work on regular wages, but a bonus is a great time to use them because the dollars are "extra" and easier to set aside.
Two short notes worth reading before you trust any number on this page.
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Results are not financial, legal, or tax advice. Please consult a qualified professional before any decision about your loan, investments, or personal finances. Actual loan terms and charges depend on your bank and individual circumstances.
