Bonus After Tax Calculator 2026 - Net Bonus Estimator

Estimate your bonus paycheck after federal supplemental withholding, state withholding, and payroll taxes. Enter the bonus amount, Social Security wages already earned this year, and supplemental wages already paid by your employer this year to account for the relevant thresholds.

Bonus amount ($) State Social Security wages already earned this year (optional)Supplemental wages already paid this year (optional)

Federal supplemental withholding is a flat 22% (37% above $1M). State uses simplified 2026 formulas. FICA is 7.65% on the bonus, but the 6.2% Social Security portion stops at the $184,500 wage base — enter your year-to-date wages above and we will apply that limit. Your actual tax follows your bracket — withholding is reconciled at tax time.

estimated net bonus

How bonus withholding works

Bonuses are “supplemental wages.” Employers usually withhold a flat 22% federal (37% on amounts over $1 million) instead of using your W-4 — plus state withholding and FICA. This is just withholding: your actual tax is whatever your marginal bracket says, and the difference settles when you file.

Why bonuses feel heavily taxed

A $10,000 bonus can lose ~35–40% to withholding in high-tax states. If the 22% federal withholding is below your marginal rate, expect to owe more in April; if above, expect a bigger refund.

FAQs

How much tax is taken from a bonus?

Typically 22% federal withholding plus state tax and 7.65% FICA — roughly 30–40% total withholding depending on your state. Actual tax follows your marginal bracket.

Why is the bonus tax rate 22%?

The IRS lets employers withhold a flat 22% on supplemental wages (bonuses, commissions) up to $1 million instead of applying W-4 tables. Above $1M it is 37%.

Do bonuses get taxed more than salary?

No — not in the end. Withholding may be higher or lower, but a bonus dollar is taxed at the same marginal rate as a salary dollar. The difference washes out at tax filing.

How can I reduce tax on my bonus?

Increase 401(k) contributions from the bonus paycheck (if your plan allows), or time the bonus year strategically. There is no special bonus loophole — it is ordinary income.

Estimates only — not tax advice. Withholding estimate using IRS supplemental rates (22%/37%). State formulas simplified; FICA at 7.65%, with the $184,500 Social Security wage base applied when year-to-date wages are entered. Actual liability depends on your total income.

Planning estimate only, not tax, legal, or financial advice. Tax rules, withholding, deductions, local taxes, and personal circumstances can change your actual result. Review the methodology and verify important decisions with official sources or a qualified professional.