HesapHanem

Bonus Tax Calculator

Enter the bonus and withholding rate to get the net bonus.

Result

$3,900.00
$1,100.00

How it is calculated

The tool applies one flat withholding percentage to the whole bonus:

withholding = bonus × rate ÷ 100
net bonus = bonus − withholding

The rate is a percentage from 0 to 100; if you leave it empty, the tool uses 22%, the US federal flat supplemental wage rate for bonuses under $1 million. The bonus cannot be negative. Only the single rate you enter is deducted: the tool does not add state tax, Social Security or Medicare on its own, and it does not apply income tax brackets or a different rate above a threshold. To include those, enter one combined rate that adds up the percentages that apply to you. Withholding is only an advance; your final tax is settled when you file your annual return, so it can be higher or lower.

Worked example

A 5,000 bonus is paid with the 22% flat rate. Withholding = 5,000 × 22 ÷ 100 = 1,100. Net bonus = 5,000 − 1,100 = $3,900.00. If the payroll also withheld, say, a flat 5% state rate, you could enter the combined 27% instead: withholding becomes 1,350 and the net bonus 3,650. The first result shows federal withholding only.

Try this example →

Common mistakes

  • Entering the rate as a fraction, such as 0.22. The field is in percent, so 0.22 deducts only 0.22% and the net bonus looks almost untaxed.
  • Treating the withholding as the final tax. It is a flat advance; your real tax depends on your total annual income and may mean a refund or a bill at filing time.
  • Expecting state tax, Social Security and Medicare to be included automatically. Only the rate you type is deducted, so add the other percentages into the rate yourself.
  • Entering the net amount you hope to receive in the bonus field. The bonus field is the gross figure before deductions.
  • Leaving the rate empty without noticing that 22% is then used, which may not be the rate that applies to your country or your employer's method.

Sources

About this calculator

In the US, employers can withhold bonuses at a flat federal supplemental wage rate — 22% for bonuses under $1 million — instead of running them through regular payroll withholding tables, which is why a bonus paycheck often looks smaller than expected relative to the headline amount. State supplemental withholding, plus Social Security and Medicare, come out on top of that flat rate.

This calculator shows the amount left after that flat federal withholding; state withholding, Social Security and Medicare are not deducted here, so the deposit that lands in the account will be smaller. Note it's a withholding estimate, not the bonus's final tax liability, since actual tax owed is reconciled against total annual income when the employee files their return.

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Comments (1)

  • Editorial team

    If you want a closer guess at the deposit, type one combined rate. The flat federal rate of 22 plus Social Security at 6.2 and Medicare at 1.45 gives 29.65, so a 5,000 bonus leaves 3,517.50 before any state withholding. Social Security stops once yearly wages pass its limit, so the real figure can be higher late in the year. This is a US payroll rule only. How does your employer handle bonus withholding?

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