See exactly how much of your bonus you'll actually take home — and whether your employer's withholding method is working in your favor.
Results update as you type.
Enter your gross bonus before any taxes
Affects how some states calculate withholding
See both methods side-by-side to understand the difference.
Used to calculate aggregate method withholding
The IRS treats bonuses as "supplemental wages" and requires employers to withhold at a flat 22% federal rate (or add them to regular pay and withhold based on combined income). Add Social Security (6.2%), Medicare (1.45%), and state income tax, and it's common to see 35–45% withheld from a bonus before it hits your bank account.
The flat rate method withholds 22% federal tax on your bonus independently. The aggregate method adds your bonus to a regular paycheck and withholds based on the combined amount — which can result in higher withholding if it temporarily pushes you into a higher bracket. Neither method changes your actual annual tax liability — the difference settles when you file your return.
For withholding purposes, yes — employers use different methods. But for your actual tax liability, no. At year-end, the IRS taxes all income at the same rates regardless of whether it came from salary or bonuses. Over-withholding results in a refund; under-withholding means you owe.
Yes. Social Security (6.2%) and Medicare (1.45%) apply to bonus income the same way as regular wages. Social Security only applies up to the $184,500 annual wage base — so if your regular salary already exceeds that, no Social Security is withheld from your bonus.
Yes — if your employer allows 401(k) contributions on bonus checks (not all do), contributing to your traditional 401(k) reduces your federal and state taxable bonus income. A $5,000 bonus with a 20% 401(k) contribution means only $4,000 is subject to income tax.
California taxes supplemental wages including bonuses at a flat 10.23% state rate, in addition to federal withholding. Combined with the federal flat rate (22%), FICA (7.65%), and CA SDI (1.3%), California employees can see over 40% withheld from a bonus.