Bonus Tax Calculator
Estimate federal taxes on your bonus and find out your actual take-home amount. Compare withholding methods to understand how your bonus will be taxed.
Bonus Information
Used for aggregate method calculation
Enter your bonus amount to see tax estimates
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Important Disclaimer
This calculator estimates federal withholding only. Actual tax liability may differ based on your total annual income, deductions, and credits. State taxes, Social Security, and Medicare are not included. Your actual take-home amount may vary. The withholding is not the same as the actual tax you owe - you'll settle the difference when filing your tax return.
Understanding Bonus Taxation
Bonuses are considered supplemental income by the IRS and can be taxed in two ways:
Flat 22% Method
The most common method. Your employer withholds a flat 22% for federal taxes on bonuses under $1 million. This is simple and predictable, but may not match your actual tax bracket.
Aggregate Method
Your bonus is combined with your regular paycheck, and withholding is calculated as if that combined amount were your regular salary. This can result in higher or lower withholding depending on your tax bracket.
Key Points
- Withholding is not the same as your actual tax liability
- You'll settle the difference when filing your tax return
- Bonuses over $1 million are taxed at 37% for the amount over $1 million
- State taxes may also apply (not included in this calculator)
- Social Security (6.2%) and Medicare (1.45%) taxes also apply