Bonus Tax Calculator
Estimate your after-tax bonus pay using either the IRS flat percentage method or the aggregate method based on your filing status and state tax rate. Use it when your employer pays a bonus and you want to know your actual take-home amount.
About this calculator
The IRS allows two methods for withholding taxes on supplemental wages like bonuses. Under the percentage method, the federal withholding is a flat 22%, plus 7.65% for FICA (Social Security + Medicare), plus your state tax rate. The formula for net bonus (percentage method) is: Net = bonusAmount × (1 − (22 + stateTaxRate + 7.65) / 100). Under the aggregate method, your bonus is added to your regular wages and taxed at your marginal bracket rate (24% for single filers, 22% for married filing jointly). The aggregate method can result in a slightly different withholding depending on your total income. Neither method changes your ultimate tax liability — only your withholding timing differs. The true tax owed is reconciled when you file your annual return.
How to use
Suppose you receive a $5,000 bonus, choose the percentage method, your state tax rate is 5%, and you file as single. Step 1: Total withholding rate = 22% (federal) + 5% (state) + 7.65% (FICA) = 34.65%. Step 2: Total taxes withheld = $5,000 × 0.3465 = $1,732.50. Step 3: Net bonus = $5,000 − $1,732.50 = $3,267.50. Using the aggregate method as a single filer: federal rate becomes 24%, so total rate = 24 + 5 + 7.65 = 36.65%, and net = $5,000 × (1 − 0.3665) = $3,167.50.
Frequently asked questions
What is the difference between the percentage method and aggregate method for bonus taxes?
The percentage method applies a flat 22% federal withholding rate directly to your bonus, regardless of your income level. The aggregate method combines your bonus with your most recent regular paycheck and withholds based on your marginal tax bracket, which can be higher or lower than 22%. For most middle-income earners, the results are similar, but high earners in the 32%+ bracket may actually prefer the aggregate method if it better reflects their true rate. Neither method changes the total taxes you ultimately owe — only the amount withheld upfront differs.
Why is FICA (7.65%) included in bonus tax withholding?
FICA taxes — comprising 6.2% for Social Security and 1.45% for Medicare — apply to all earned wages, including bonuses. The 7.65% combined rate is withheld from your bonus just as it is from your regular paycheck. Note that the Social Security portion (6.2%) only applies up to the annual wage base ($168,600 in 2024); if you've already exceeded that threshold, your bonus won't be subject to Social Security tax. Medicare tax has no wage cap, so the 1.45% always applies.
How can I reduce the taxes withheld from my bonus?
One strategy is to contribute a portion of your bonus to a pre-tax retirement account like a 401(k) before it is paid, reducing the taxable amount. You can also adjust your W-4 withholding allowances temporarily, though this affects your regular paychecks too. Keep in mind that withholding is not the same as actual tax liability — if too much is withheld, you'll receive a refund when you file. Consulting a tax professional before your bonus is paid can help you optimize your net take-home legally.