Bonus Tax Calculator
Estimate how much of your bonus gets withheld for taxes, using the IRS flat-rate "percentage method" most employers use.
How bonus withholding works
When your employer pays a bonus separately from your regular paycheck, the IRS allows them to use the "percentage method": a flat 22% federal withholding rate on the bonus, regardless of your actual tax bracket. This is on top of standard FICA (Social Security + Medicare) and any state tax.
This flat rate is just withholding — not your final tax bill. If your actual marginal tax rate is lower than 22%, you'll likely get some of that back as a refund when you file. If it's higher, you may owe more at tax time. Some employers instead use the "aggregate method" (combining the bonus with a regular paycheck), which can withhold a different amount.
Worked example
A $5,000 bonus, paid separately, no state tax (e.g. Texas):
| Item | Amount |
|---|---|
| Gross bonus | $5,000.00 |
| Federal withholding (22%) | $1,100.00 |
| Social Security (6.2%) | $310.00 |
| Medicare (1.45%) | $72.50 |
| Net bonus | $3,517.50 |
Frequently asked questions
Will I get some of the withholding back?
Possibly. The 22% flat rate is just an estimate baked into your paycheck — it's not necessarily your real tax rate on that money. If your overall marginal tax rate for the year is below 22%, the extra amount withheld from your bonus typically comes back to you as part of your tax refund when you file. If your marginal rate is above 22% (common for higher earners), you may owe more at tax time rather than getting money back. Either way, the 22% withheld is a prepayment toward your total annual tax bill, not a separate "bonus tax."
Bonus timing strategies
Some employees ask their employer to split a large bonus across two pay periods, or to delay a bonus into the following calendar year, hoping to reduce the tax impact. In reality, since income tax is calculated on your annual total regardless of which paycheck it lands in, timing rarely changes your final tax bill — it mainly shifts when the cash arrives in your account. The one exception is if shifting a bonus into a different year would keep you under a key income threshold (like the additional Medicare tax threshold) — a scenario worth discussing with a CPA if your bonus is unusually large.