Bonus Tax Calculator
Calculate how your bonus will be taxed. Bonuses are considered supplemental wages and can be withheld differently than regular pay.
Bonus Withholding Methods
| Method | How It Works | When Used |
|---|---|---|
| Flat Rate (22%) | Employer withholds flat 22% federal | Most common method |
| Aggregate | Bonus added to regular pay, taxed as one | Some payroll systems |
| 37% Rate | Flat 37% for bonuses over $1 million | High compensation |
Bonus Tax Calculator
``javascript
function calculateBonusTax(bonusAmount, method = 'flat', annualSalary = 0) {
// Flat rate method (22% federal)
if (method === 'flat') {
const federalWithholding = bonusAmount * 0.22;
const socialSecurity = bonusAmount * 0.062;
const medicare = bonusAmount * 0.0145;
const totalWithholding = federalWithholding + socialSecurity + medicare;
return {
bonusAmount,
federalWithholding: federalWithholding.toFixed(2),
socialSecurity: socialSecurity.toFixed(2),
medicare: medicare.toFixed(2),
totalWithholding: totalWithholding.toFixed(2),
netBonus: (bonusAmount - totalWithholding).toFixed(2)
};
}
// Aggregate method (combined with salary)
const payPeriodSalary = annualSalary / 12;
const combinedPay = payPeriodSalary + bonusAmount;
// Tax calculated on combined pay, then subtract regular withholding
// (Simplified calculation)
return { method: 'aggregate', combinedPay };
}
``
Bonus Tax Breakdown ($10,000 Bonus)
| Tax Type | Rate | Amount |
|---|---|---|
| Federal Income | 22% | $2,200 |
| Social Security | 6.2% | $620 |
| Medicare | 1.45% | $145 |
| Total Federal | 29.65% | $2,965 |
| State (varies) | 0-13% | $0-$1,300 |
| Net Bonus | ~70-78% | $7,035-$7,735 |
Why Bonuses Seem Heavily Taxed
Bonuses aren't taxed at a higher *rate*, but withholding is often higher because:
- 22% flat rate may exceed your actual marginal rate
- Aggregate method may temporarily push you into higher bracket
- You get excess withholding back as a larger refund