Bonus Tax Calculator (2025)
See how much of a bonus you keep after federal supplemental withholding, FICA and optional state tax.
Supplemental wages taxed by the IRS percentage method.
For the $1,000,000 (37%) rule — leave 0 if none.
Take-home
70%
Net bonus take-home
Total withholding
$2,965.00
Effective rate
29.6%
Federal (supplemental)
$2,200.00
Net bonus $7,035Federal $2,200Social Security $620Medicare $145
This is withholding (money held back), not your final tax. Your actual tax is settled when you file; if too much was withheld you get it back as a refund.
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How bonus withholding is calculated (2025)
A bonus is a supplemental wage. The IRS percentage method uses a flat federal rate, then payroll taxes are added on top.
2025 supplemental wage withholding rates
| Component | Rate | Applies to |
|---|---|---|
| Federal (standard) | 22% | Supplemental wages up to $1,000,000 |
| Federal (high) | 37% | Portion above $1,000,000 |
| Social Security | 6.2% | Wages up to $176,100 |
| Medicare | 1.45% | All wages (+0.9% above $200,000) |
Net bonus = bonus − federal withholding − Social Security − Medicare − state tax.
Withholding is not your final tax — it is settled when you file. This is an estimate, not tax advice.
Frequently Asked Questions
- How are bonuses taxed?
- Bonuses are "supplemental wages." Under the IRS percentage method, employers withhold a flat 22% federal tax on supplemental wages up to $1,000,000 in a year, and 37% on the portion above $1,000,000. Social Security and Medicare also apply.
- Why is so much taken out of my bonus?
- The 22% federal flat rate plus Social Security (6.2%) and Medicare (1.45%) is withholding, not your final tax. When you file your return, your bonus is taxed at your real rate and any over-withholding comes back as a refund.
- When does the 37% rate apply?
- Only when your cumulative supplemental wages for the year exceed $1,000,000. The portion above $1M is withheld at 37%; everything up to $1M stays at 22%. Enter your year-to-date supplemental wages to model this.
- What about Social Security and Medicare on a bonus?
- Social Security (6.2%) applies until you reach the $176,100 wage base for the year — toggle "already maxed" to skip it. Medicare (1.45%) always applies, with an extra 0.9% once total wages pass $200,000.
- Is the aggregate method different?
- Yes. Employers may instead lump the bonus with a regular paycheck and withhold at your normal rate (the aggregate method). This calculator uses the simpler, more common flat percentage method.
📅 Last updated: June 2026 · Formulas follow standard banking / tax conventions · Results are for reference only.