Bonus Paycheck Calculator

Employers commonly withhold bonuses (and other "supplemental wages") at a flat 22% federal rate, separate from your regular paycheck's withholding — plus FICA (6.2% Social Security, 1.45% Medicare) and state tax. That withholding can feel high, but it's just withholding, not your final tax rate — your actual tax liability is based on your total annual income when you file.

No — 22% is just the standard federal withholding rate for supplemental wages under $1 million. Your real tax liability depends on your total annual income and tax bracket, and gets reconciled when you file your return. If your effective tax rate is lower than 22%, you'll get some of that withholding back as part of your refund.

The IRS requires 37% federal withholding on the portion of combined supplemental wages for the year that exceeds $1 million, versus 22% below that threshold.

The percentage method withholds a flat 22%/37% on a bonus paid as its own separate check. The aggregate method applies when a bonus is combined with a regular paycheck — the employer withholds based on the combined total using standard federal bracket tables (annualized), which can result in a different withholding amount than the flat method, especially at income levels away from the 22% bracket. This calculator supports both — select "Aggregate" and enter your regular paycheck details to see the difference.