Everyday ToolboxBonus Tax Calculator
How much of your bonus will you actually keep? Enter your bonus, how much you have already earned this year, and your state tax rate — and see the federal withholding, Social Security, Medicare, and state tax taken out, plus your take-home pay.
Frequently Asked Questions
How much tax is taken out of a bonus?
For most employees: federal supplemental withholding at 22% (37% on supplemental wages over $1 million in the year), Social Security at 6.2% up to the $184,500 wage base for 2026, Medicare at 1.45% plus an extra 0.9% on wages over $200,000 (single) or $250,000 (married filing jointly), plus your state tax. Example: a $10,000 bonus with $50,000 already earned this year, single, 5% state rate → about $3,465 withheld, $6,535 take-home.
Why is my bonus taxed so much?
Bonuses are "supplemental wages," and employers usually withhold federal tax at a flat 22% instead of your regular paycheck rate. That flat rate is often higher than the rate on your normal pay, so the bonus check looks heavily taxed. It is withholding, not your final tax — your actual tax is settled when you file, and you may get some of it back as a refund.
Is a bonus taxed at 40%?
No — there is no 40% tax on bonuses. The top federal supplemental withholding rate is 37%, and it only applies to supplemental wages over $1 million in a year. For a typical bonus, the combined withholding (federal + Social Security + Medicare + state) lands around 30–40% in total, which is where the myth comes from.
How can I reduce the tax on my bonus?
The main lever is increasing your 401(k) contribution from that paycheck, if your plan allows it — pre-tax contributions shrink the taxable amount. HSA contributions help too. Timing matters as well: a bonus deferred into next year is taxed next year, but your employer controls the timing. This calculator shows withholding, not tax advice — check with a tax professional for your situation.
Does Social Security tax stop after a certain amount?
Yes. Social Security tax (6.2%) applies only to the first $184,500 of wages in 2026. If you have already passed that amount before your bonus arrives, no Social Security tax is taken from the bonus. Medicare tax has no cap — it applies to all wages.
Is this bonus tax calculator free?
Yes — completely free, no signup, no downloads. It runs 100% in your browser, so your answers never leave your device. Results are estimates based on 2026 federal rules and the state rate you enter, not tax advice.