Free 2025 bonus tax calculator. Compare the 22% flat supplemental rate vs. aggregate method to see how your bonus is actually taxed and what you'll take home.
The Tax on Bonus Calculator shows how your bonus is taxed under IRS rules. Most employers withhold at the 22% flat supplemental rate on bonuses up to $1 million. Some use the aggregate method, which combines your bonus with regular pay for a single paycheck and withholds at your marginal rate.
While the flat 22% rate is simple, it may result in over- or under-withholding compared to your actual tax bracket. The aggregate method can withhold more because your combined pay pushes into higher brackets for that paycheck.
Enter your bonus amount, regular pay, and filing details to compare both methods and see your actual take-home from the bonus. Many people are confused when their bonus check seems heavily taxed, but the withholding rate and your actual tax rate are different things. The flat 22% supplemental rate is only a withholding method, and your real tax on the bonus depends on your total annual income and marginal bracket. Any over-withholding comes back as a refund when you file.
Many workers are surprised by how much tax is withheld from bonuses. This calculator demystifies bonus taxation by showing you both IRS-approved methods side by side, so you can estimate your take-home and plan for any refund or shortfall when you file. Knowing the real impact removes the frustration and helps you plan spending and saving accordingly.
Flat Method: Federal Withholding = Bonus × 22% (up to $1M) or 37% (over $1M) Aggregate Method: Tax on (Regular Pay + Bonus) − Tax on (Regular Pay) = Bonus Withholding FICA on Bonus: SS 6.2% (up to wage base) + Medicare 1.45% + add'l 0.9% if applicable
Result: Flat: $2,200 withheld | Aggregate: ~$2,200 | Take-home: ~$7,035
A $10,000 bonus with $80,000 salary (22% bracket). Flat method: 22% = $2,200 federal withholding. FICA adds $620 (SS) + $145 (Medicare) = $765. Take-home ≈ $7,035. The aggregate method yields similar withholding since the marginal bracket is 22%.
Despite the perception that bonuses are “taxed more,” they are ultimately taxed at your marginal rate just like all other income. The apparent higher tax is due to the withholding process. At year-end, your total income (wages + bonus) determines your actual tax liability.
If you receive a large bonus, consider maximizing your 401(k) contribution for that paycheck (some employers allow this). You can also increase charitable donations, contribute to an HSA, or prepay deductible expenses. These reduce your taxable income for the year.
States apply their own withholding rules to bonuses. Some use a flat supplemental rate (like the federal method), while others always use the aggregate method. Check your state's rules to understand total bonus withholding.
Your bonus is typically withheld at 22%, but that's the withholding rate, not your actual tax rate. Your bonus is added to your total income and taxed at your marginal rate. If your marginal rate is lower than 22%, you'll get a refund; if higher, you'll owe more when you file.
The flat method withholds a straight 22% from your bonus. The aggregate method combines your bonus with regular pay for that pay period, calculates tax on the total, subtracts tax already withheld on just the regular pay, and the difference is withheld from the bonus. The aggregate method often results in higher withholding.
This is typically an illusion caused by the withholding method. The flat 22% rate may be higher than your effective tax rate, or the aggregate method bumps your paycheck into a higher bracket for that period. At year-end, bonuses and wages are all taxed the same based on your total income.
Yes. Bonuses are subject to the same FICA taxes as regular wages: 6.2% Social Security (up to the $176,100 wage base) and 1.45% Medicare. If you've already hit the SS wage base through regular earnings, no additional SS tax applies to the bonus.
The first $1 million of supplemental wages (including bonuses) is withheld at 22%. Any amount over $1 million is withheld at the top federal rate of 37%. This higher rate applies to the excess regardless of your actual tax bracket.
You can't change how the bonus is withheld, but you can increase pre-tax retirement contributions (401k, HSA) to offset taxable income. You can also adjust your W-4 to reduce withholding on subsequent paychecks to account for over-withholding on the bonus.