How the Bonus Take-Home Pay Calculator Works
Unlike your regular paycheck, a bonus in the U.S. is withheld using the IRS "supplemental wage" method rather than your normal W-4 withholding table. Most employers use the simplest version of that method: a flat 22% federal withholding rate on bonuses up to $1 million in a calendar year, and 37% on anything above that. This calculator applies that flat rate plus standard FICA taxes — 6.2% Social Security and 1.45% Medicare, 7.65% combined — to estimate what actually lands in your bank account.
For example, a $5,000 bonus gets $1,100 withheld for federal tax (22%) and $382.50 for FICA, leaving about $3,517.50 as take-home pay — even though nothing was technically "lost," since the IRS just withheld it up front. State income tax is not included here since rates vary widely (and some states have none), so if you live somewhere with state income tax, your actual take-home will be a bit lower than this estimate.
One important nuance: 22% withholding is not necessarily your real tax rate on that money. When you file your return, all your income — salary plus bonus — is combined and taxed at your actual marginal rate. If your marginal rate is lower than 22%, you'll likely get some of that withholding back as part of your refund; if it's higher, you may owe more at tax time.
Frequently Asked Questions
The IRS treats bonuses as supplemental wages and lets employers withhold at a flat 22% federal rate (37% on any amount over $1 million in a year) instead of using your regular W-4 withholding table. This is just withholding — your actual tax liability is settled based on your total income when you file, so you may get some of it back as a refund.
Yes. Bonuses are subject to the same 6.2% Social Security tax (up to the annual wage base) and 1.45% Medicare tax as regular wages, for a combined 7.65% — on top of the 22% federal withholding.