Bonus Tax Calculator 2026 - How Much of Your Bonus Will You Actually Keep?
The formula: Net Bonus = Gross Bonus - (Gross x 22%) - State Tax - FICA. Bonuses are classified as supplemental wages and withheld at a flat 22% federal rate when paid separately (for bonuses under $1 million).
How Bonuses Are Taxed
Method 1 - Flat Rate (most common): Federal withholding at 22% flat on bonuses up to $1 million. 37% on amounts over $1 million in the tax year.
Method 2 - Aggregate Method: When bonus is included in same paycheck as regular wages - combined amount taxed using normal withholding tables, often resulting in higher withholding.
FICA always applies: Social Security 6.2% (up to SS wage base), Medicare 1.45%, Additional Medicare 0.9% above $200,000 YTD.
The Formula Explained
Worked example ($15,000 bonus, single, California, $65,000 YTD wages): Federal (22%): $3,300. SS (6.2%): $930. Medicare (1.45%): $217.50. CA state supplemental (6.6%): $990. Total withholding: $5,437.50. Net bonus: $9,562.50. Keep: 63.8%.
| Gross Bonus | Federal (22%) | FICA (7.65%) | State (5% example) | Net Bonus | Keep % |
|---|---|---|---|---|---|
| $5,000 | $1,100 | $383 | $250 | $3,267 | 65.3% |
| $10,000 | $2,200 | $765 | $500 | $6,535 | 65.4% |
| $25,000 | $5,500 | $1,913 | $1,250 | $16,337 | 65.3% |
| $50,000 | $11,000 | $3,825 | $2,500 | $32,675 | 65.4% |
How to Use This Calculator on CalcAdvisor.com
Calculate your net bonus at https://www.calcadvisor.com/calculators/bonus-tax-calculator.
3 Real-World Examples
Example 1: Tom, $8,000 Year-End Bonus, Texas (No State Tax)
Federal (22%): $1,760. SS (6.2%): $496. Medicare (1.45%): $116. State: $0. Net: $5,628. Tom keeps 70.3% - a better outcome than colleagues in high-tax states.
Example 2: Amanda, $35,000 Signing Bonus, New York City
Federal (22%): $7,700. SS: $2,170. Medicare: $507.50. NY state (11.7%): $4,095. NYC (3.876%): $1,357. Total withholding: $15,830. Net: $19,170. She keeps only 54.8% due to combined NY/NYC rates.
Example 3: Richard, $75,000 Performance Bonus, High Earner (32% Bracket)
Federal (22%): $16,500 withheld. But Richard's actual rate is 32% - under-withheld by $7,500. He makes an additional estimated tax payment in December to avoid a balance due in April.
Common Mistakes to Avoid
- Assuming the 22% flat rate is your true tax on the bonus.
- Not planning for the under-withholding gap for high earners in the 24-37% brackets.
- Forgetting that FICA applies to bonuses the same as regular wages.
- Not checking whether the Social Security wage base affects your bonus.
- Receiving a signing bonus without planning for the full FICA hit at a new employer.
- Not considering pre-tax 401(k) contributions from bonus proceeds.
- Comparing gross bonus offers across states without accounting for state tax differences.
Final Thoughts
Calculate your exact net bonus right now at https://www.calcadvisor.com/calculators/bonus-tax-calculator.