Bonus Tax Calculator
Enter your bonus and state to see how much you keep after taxes.
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How bonuses are taxed
The IRS treats bonuses, commissions and other one-off payments as supplemental wages. When they are paid separately from your regular pay, most employers use the flat-rate method:
- Federal: 22% up to $1 million in supplemental wages for the year, 37% above that.
- Social Security: 6.2% until your total wages reach the annual wage base.
- Medicare: 1.45%, plus 0.9% on wages above $200,000.
State bonus withholding rates
| State | Supplemental rate |
|---|---|
| Alabama | 5% |
| Arkansas | 3.7% |
| California | 10.23% |
| Georgia | 4.99% |
| Idaho | 5.3% |
| Illinois | 4.95% |
| Indiana | 2.95% |
| Iowa | 3.8% |
| Kansas | 5% |
| Maine | 5% |
| Michigan | 4.25% |
| Minnesota | 6.25% |
| Missouri | 4.7% |
| Montana | 5% |
| Nebraska | 3.5% |
| New Mexico | 5.9% |
| New York | 11.7% |
| North Carolina | 4.09% |
| North Dakota | 1.5% |
| Ohio | 2.75% |
| Oklahoma | 4.5% |
| Oregon | 8% |
| Pennsylvania | 3.07% |
| Rhode Island | 5.99% |
| Vermont | 6.6% |
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Frequently asked questions
How much tax is taken out of a bonus?
If your bonus is paid separately, federal withholding is a flat 22% (37% on bonuses above $1 million in a year). Social Security (6.2%) and Medicare (1.45%) also apply, plus state tax.
Why is so much of my bonus withheld?
The 22% flat rate is withholding, not your final tax. If your actual tax rate is lower, you get the difference back when you file; if it is higher, you owe more.
Is a bonus taxed more than regular pay?
No. Bonuses are taxed as ordinary income. Only the withholding method differs.