Bonus Tax Calculator
Got a bonus coming? Estimate the 2025 federal withholding under the IRS percentage method — the flat 22% supplemental rate plus Social Security and Medicare — and see what actually lands in your account.
Reviewed by the CalcCafe editorial team · Last updated 18 July 2026 · How we test our tools
Example
An employee with $85,000 of year-to-date wages receives a $10,000 bonus. Federal supplemental withholding is 22% of the bonus: $2,200. The whole bonus still sits below the 2025 Social Security wage base of $176,100, so 6.2% ($620) is withheld, plus 1.45% Medicare ($145) — $765 of FICA in total. Combined withholding is $2,965, leaving a net bonus of about $7,035 — an effective withholding rate of roughly 29.7%. Whether any of that comes back depends on your actual marginal tax rate at filing time.
How it works
This tool applies the IRS percentage method for supplemental wages: a flat 22% federal withholding on the first $1,000,000 of bonus in a year, and a mandatory 37% on any amount above that. Social Security (6.2%) is withheld only on the slice of the bonus that fits under the 2025 wage base of $176,100 given your year-to-date wages — once you have crossed the cap, no more is taken. Medicare is 1.45% on the full bonus, plus the 0.9% Additional Medicare Tax on whatever portion of the bonus pushes your total wages past $200,000. Net bonus = bonus − federal withholding − FICA. Federal only, 2025 tax year, educational estimate — state withholding and paycheck deductions like 401(k) are excluded.
Good to know
The most important thing to understand: withholding is not your tax. A bonus is ordinary income, taxed at filing time at your regular marginal rate alongside salary. The 22% taken today is just a prepayment. If your marginal rate is 12%, the flat 22% over-withholds and you get the difference back as a refund; if you are in the 32% or 35% bracket, 22% under-withholds and you will owe the gap in April. High earners expecting a big bonus should consider adjusting their W-4 or making an estimated payment so the shortfall does not turn into an underpayment penalty.
Employers can withhold on bonuses two ways. The percentage method modeled here treats the bonus separately at the flat supplemental rate — simple and by far the most common when the bonus is paid on its own check. The aggregate method instead adds the bonus to a regular paycheck and withholds as if you earned that combined amount every period, which often grabs more up front because it briefly treats you as a much higher earner. Either way the final tax is identical; only the timing of the cash differs.
Two thresholds change the math. Above $1,000,000 of supplemental wages in a calendar year, the law requires a flat 37% withholding on the excess — no W-4 election can lower it. And FICA never takes a holiday for bonuses: Social Security at 6.2% applies until your year-to-date wages hit the 2025 cap of $176,100 (a late-year bonus after crossing the cap escapes it entirely), while Medicare's 1.45% applies to every dollar, joined by the 0.9% Additional Medicare Tax on wages above $200,000 regardless of filing status at the withholding stage.
Remember the scope: this is a federal-only, 2025 tax year, educational estimate of withholding, not of your final liability. Most states also withhold on bonuses — some at their own flat supplemental rates, some via aggregate methods — and pre-tax 401(k) deferrals, HSA contributions or other elections on the bonus check can change the take-home figure. If the bonus is large relative to your salary, a quick projection of your full-year return (or a session with a tax professional) tells you whether to expect a refund or a bill.
Frequently asked questions
Are bonuses taxed at a higher rate than regular pay?
No — that is a myth. Bonuses are ordinary income taxed at your normal marginal rate when you file. What differs is withholding: the flat 22% supplemental rate may be higher or lower than your usual paycheck withholding, and any difference washes out as a refund or balance due on your return.
Why was 22% withheld from my bonus?
Under the IRS percentage method for supplemental wages, employers withhold a flat 22% federal income tax on bonuses up to $1,000,000 per year, plus Social Security and Medicare. Above $1,000,000 of supplemental wages, a mandatory 37% applies to the excess and cannot be reduced by your W-4.
Does this calculator include state taxes on my bonus?
No — it estimates 2025 federal withholding only. Most states also withhold on bonuses, often at their own flat supplemental rates, so your actual net check may be smaller than shown. It also excludes 401(k) deferrals and other paycheck deductions. Treat the result as an educational estimate.
Is this calculator free, and is my bonus data uploaded anywhere?
Yes, it is completely free with no sign-up, and no — it runs entirely in your browser. Your bonus and wage figures never leave your device.
People also ask
What is the difference between the percentage and aggregate methods?
The percentage method withholds a flat 22% (37% above $1 million) on the bonus alone, typically when it is paid as a separate check. The aggregate method adds the bonus to a regular paycheck and withholds as if that total were your normal pay, which often takes more up front. Your final tax is the same either way — only the withholding timing differs.
Will I get some of my bonus withholding back as a refund?
If your marginal tax rate is below 22%, likely yes — the flat rate over-withheld and the excess returns as a refund at filing. If you are in the 24%, 32%, 35% or 37% bracket, the 22% probably under-withheld and you may owe the difference, so consider extra W-4 withholding or an estimated payment.
Do bonuses have Social Security and Medicare taken out?
Yes. Social Security at 6.2% applies to the portion of the bonus under the 2025 wage base of $176,100 counting year-to-date wages, and Medicare at 1.45% applies to every dollar with an extra 0.9% on wages above $200,000. A bonus paid after you have crossed the Social Security cap skips the 6.2% entirely.
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Sources & references
These tools follow our methodology and provide educational estimates only — verify important figures with a qualified professional.