Enter your bonus and see the federal 22% supplemental withholding, Social Security, Medicare, and state tax taken out — and what actually lands in your account.
How bonus withholding works
federal = bonus × 22% (37% on amounts over $1M/year)
FICA = bonus × 6.2% (Social Security) + bonus × 1.45% (Medicare)
take-home = bonus − federal − FICA − state withholding
The 22% is the IRS percentage method for supplemental wages — the most common way employers handle standalone bonus checks. It's a withholding rate, not your real tax rate: at filing time the bonus is just ordinary income. If your marginal rate is below 22%, you'll get the difference back; if you're in a higher bracket, you may owe a bit more.
A worked example
On a $10,000 bonus in a 5% state: federal withholding is $2,200, Social Security $620, Medicare $145, and state $500 — $3,465 withheld, for a take-home of $6,535. If your actual federal bracket is 24%, expect to owe roughly another $200 at filing; if it's 12%, roughly $1,000 comes back.
Why the check is smaller than you expected
Two common surprises: employers using the aggregate method (bonus added to a normal paycheck) often withhold at a much higher effective rate, and 401(k) or other percentage-based deductions may apply to the bonus too, depending on your plan. Neither changes your final tax bill — only the timing of when you see the money.
Frequently asked questions
Why is my bonus taxed at 22%?
It usually isn't taxed at 22% — it's withheld at 22%. The IRS lets employers withhold a flat 22% federal rate on supplemental wages like bonuses (the percentage method). Your bonus is ultimately taxed as ordinary income when you file; if 22% was too much, the difference comes back as a refund.
How much tax is taken out of a $5,000 bonus?
Using the percentage method: $1,100 federal (22%), $310 Social Security (6.2%), and $72.50 Medicare (1.45%) — about $1,483 plus any state withholding, leaving roughly $3,500 in most states.
What is the aggregate method?
Instead of the flat 22%, some employers add the bonus to a regular paycheck and withhold as if you earned that much every period. This often over-withholds for large bonuses. Which method applies is your employer's payroll choice, not yours.
Are bonuses over $1 million treated differently?
Yes. Federal withholding on supplemental wages above $1 million in a year is a mandatory 37% on the excess.
Can I reduce the tax on my bonus?
You can't avoid withholding, but directing part of the bonus into a traditional 401(k) (if your plan allows bonus deferrals) reduces the taxable amount, and an HSA contribution can offset it at filing time.