Are bonuses taxed at a higher rate than salary?

No. A bonus is ordinary income taxed at the same rates as any other wages. What differs is withholding: employers commonly apply a flat supplemental rate, which often takes more up front than your eventual liability, and the excess returns as a larger refund.

What is the flat supplemental rate?

Under IRS Publication 15, an employer may withhold supplemental wages such as bonuses at a flat 22% for amounts up to $1,000,000 in a year, and 37% on the portion above that. This calculator does not use that method, which is why your payslip differs.

Why does this calculator show a lower federal tax?

It runs the bonus through the brackets as though it were your only income for the year, so the first dollars land in the 10% and 12% bands. In reality the bonus stacks on top of your salary and is taxed at your top marginal rate.

Do I get the over-withheld amount back?

Generally yes. Withholding is a prepayment rather than a final tax, so if the flat rate took more than your actual liability the difference is settled when you file, as either a larger refund or a smaller balance due.

Is Social Security withheld from a bonus?

Yes, at 6.2%, but only until your total wages for the year reach the Social Security wage base. If your salary has already passed the cap, a later bonus carries no Social Security tax, which this page cannot know unless you account for it.

Can I reduce the tax on a bonus?

Directing part of a bonus into a pre-tax retirement plan or health savings account reduces the taxable amount, subject to annual limits and your plan rules. That option is not modelled here, so compare the net figure against the contribution by hand.

Does it include state tax?

No, only federal income tax and FICA are estimated. Many states apply their own supplemental withholding rate to bonuses, which can take several further percentage points off the net figure shown on this page.

Is this relevant to a bonus paid in Pakistan?

No. The rates and thresholds here are US federal rules expressed in dollars. Bonus taxation in Pakistan falls under FBR rules and is covered by TaxEase paid services, which are entirely separate from these free US calculators.

Bonus Tax Calculator: Your Net Bonus After Withholding

Bonus Tax Calculator: Your Net Bonus After WithholdingThe Bonus Tax Calculator is a free browser-based tool that estimates the federal income tax and FICA withheld from a US bonus payment and shows the net amount left over. Bonuses feel punitively taxed because employers usually withhold them at a flat supplemental rate rather than at your normal payroll rate, so the deduction on the payslip looks unlike anything else you see all year. Enter the bonus amount, filing status, and any prior withholding, and the tool returns federal tax, Social Security, Medicare, total withheld, and take-home bonus, alongside the flat-rate comparison that explains most of the gap.

What people use it for

Budgeting a bonus that is already spoken for

An employee planning to clear a credit card with an announced $5,000 bonus needs the net figure rather than the gross one. Seeing roughly $4,100 arrive instead of $5,000 changes whether the balance clears in a single payment, and that is far better learned in advance than discovered on the payslip itself.

Understanding why a bonus looked over-taxed

Someone whose $20,000 bonus arrived far lighter than expected wants to know whether payroll made a mistake worth challenging. Comparing this calculator against the flat supplemental rate shows the withholding was mechanical rather than an error, and that most of the difference is recovered when the return is filed.

Choosing between cash and a retirement contribution

An employee offered the choice of taking a bonus in cash or directing part of it into a retirement plan compares the net cash figure shown here against the full untaxed contribution amount. The gap between those two numbers is what the decision genuinely turns on, rather than the headline bonus.

A manager quoting an offer honestly

A hiring manager quoting a signing bonus can show the candidate a realistic net figure rather than the gross headline number during the offer conversation. Setting that expectation at offer stage avoids an awkward exchange on the first payday and makes the rest of the package easier to discuss.

How it works

Enter the bonus amount The gross bonus before any deduction at all. The tool treats it as a standalone amount rather than stacking it on top of your regular salary for the year, which is the main simplification to keep in mind.
Select your filing status It chooses which bracket table applies to the bonus and sets the threshold for the Additional Medicare Tax, which only starts to matter on unusually large bonus amounts paid in one go.
Enter prior withholding if relevant Any amount already withheld that you want credited against this calculation. It reduces the total tax shown, and the result is floored at zero rather than being allowed to go negative.
Press Calculate Tax Federal tax comes from the bracket table, Social Security is applied at 6.2% up to the annual wage base, and Medicare at 1.45% with no ceiling of any kind on the amount.
Read the net bonus card The green figure at the bottom is the estimated take-home amount. Compare it against the flat supplemental rate described below to understand what your employer will most likely withhold instead.

Worked examples

Input: Bonus $5,000, single, no prior withholding

Result: Federal tax about $500, Social Security $310.00, Medicare $72.50, total about $883, net bonus about $4,117. Your employer will more likely apply the flat 22% supplemental rate, which is $1,100 of federal tax and a net closer to $3,517.

Input: Bonus $20,000, single, no prior withholding

Result: Federal tax about $2,168, Social Security $1,240.00, Medicare $290.00, total about $3,698, net bonus about $16,302. At the flat 22% rate the federal withholding would instead be $4,400, leaving roughly $14,070 in the bank.

Input: Bonus $5,000, single, prior withholding $400

Result: The same $882.60 of tax less the $400 already withheld leaves about $483 more to withhold and a net bonus near $4,517. The prior withholding field credits against the calculation rather than adding to it.

Frequently asked questions

Are bonuses taxed at a higher rate than salary?: No. A bonus is ordinary income taxed at the same rates as any other wages. What differs is withholding: employers commonly apply a flat supplemental rate, which often takes more up front than your eventual liability, and the excess returns as a larger refund.
What is the flat supplemental rate?: Under IRS Publication 15, an employer may withhold supplemental wages such as bonuses at a flat 22% for amounts up to $1,000,000 in a year, and 37% on the portion above that. This calculator does not use that method, which is why your payslip differs.
Why does this calculator show a lower federal tax?: It runs the bonus through the brackets as though it were your only income for the year, so the first dollars land in the 10% and 12% bands. In reality the bonus stacks on top of your salary and is taxed at your top marginal rate.
Do I get the over-withheld amount back?: Generally yes. Withholding is a prepayment rather than a final tax, so if the flat rate took more than your actual liability the difference is settled when you file, as either a larger refund or a smaller balance due.
Is Social Security withheld from a bonus?: Yes, at 6.2%, but only until your total wages for the year reach the Social Security wage base. If your salary has already passed the cap, a later bonus carries no Social Security tax, which this page cannot know unless you account for it.
Can I reduce the tax on a bonus?: Directing part of a bonus into a pre-tax retirement plan or health savings account reduces the taxable amount, subject to annual limits and your plan rules. That option is not modelled here, so compare the net figure against the contribution by hand.
Does it include state tax?: No, only federal income tax and FICA are estimated. Many states apply their own supplemental withholding rate to bonuses, which can take several further percentage points off the net figure shown on this page.
Is this relevant to a bonus paid in Pakistan?: No. The rates and thresholds here are US federal rules expressed in dollars. Bonus taxation in Pakistan falls under FBR rules and is covered by TaxEase paid services, which are entirely separate from these free US calculators.

Tips

Plan against the flat supplemental rate rather than this estimate if you need the money on payday. Assuming 22% federal plus 7.65% FICA is the safer budgeting assumption for most bonuses.
Check where your year-to-date wages sit before assuming Social Security will be withheld at all. Past the wage base that 6.2% disappears and the net bonus is correspondingly larger.
If a bonus lands late in the year, consider whether raising a pre-tax retirement contribution across the remaining pay periods absorbs part of it before it is taxed.
Do not read heavy withholding as a higher tax rate on bonuses. It is a timing difference, and the reconciliation happens when the return is filed.

Written by Ahsan Mahmood. Last updated 2026-07-21. This calculator runs entirely in your browser and produces estimates, not tax advice.TaxEase — Bonus Tax Calculator: Your Net Bonus After Withholding