PersonalCFO

Bonus Tax Calculator

See the true tax impact of your bonus. Your bonus stacks on top of your salary in progressive brackets — the actual tax depends on your total income, not a flat 22% withholding rate.

Your Income

$
W-2 wages before bonus
$
Bonus, commission, or supplemental wages

Tax on Your Bonus

Total Tax on Bonus
$4,712
Incremental tax from bonus
Effective Rate on Bonus
31.4%
Actual % of bonus paid in tax
Marginal Bracket
32%
Federal marginal rate
Take-Home from Bonus
$10,289
After all taxes

Bonus Tax Breakdown

Bonus Amount$15,000
Federal Income Tax on Bonus$3,564
Social Security + Medicare (FICA)$1,148
Total Tax on Bonus$4,712
Take-Home from Bonus$10,289

22% Withholding vs. Actual Tax

22% Flat Withholding
$3,300
What payroll withholds
Actual Tax on Bonus
$4,712
What you really owe
Underpaid by
$1,412
You'll owe more at tax time

Note: The 22% withholding is just an estimate your employer uses for payroll. It does not include FICA or state tax. Your actual tax is determined when you file.

How Your Bonus Stacks in the Brackets

10% bracket$12,400 total
12% bracket$38,000 total
22% bracket$55,300 total ($1,800 bonus)
24% bracket$13,200 total ($13,200 bonus)
SalaryBonus

The “Bonuses Are Taxed at 22%” Myth

Withholding is not taxation.Employers are required to withhold federal tax on bonuses at a flat 22% rate (or 37% for amounts over $1 million). This is a convenience for payroll — it has nothing to do with how much tax you actually owe.

Bonuses are taxed as ordinary income. When you file your tax return, your bonus is added to your salary and taxed through the same progressive brackets. If your salary already puts you in the 24% bracket, most of your bonus will be taxed at 24% (or higher, if it pushes you into the next bracket). The 22% withholding might leave you underpaid.

The marginal rate on your bonus depends on your salary. Someone earning $50,000 with a $10,000 bonus will pay a different effective rate on that bonus than someone earning $200,000 with the same bonus. This calculator shows the real math: how your bonus stacks on top of your salary in each bracket.

State taxes add up. The 22% withholding myth ignores state income tax entirely. In high-tax states like California or New York, your combined marginal rate on that bonus could exceed 50%.

FICA applies too. Your bonus is subject to Social Security tax (6.2%, up to the wage base of $176,100 in 2026) and Medicare tax (1.45%, plus 0.9% additional above $200,000). These payroll taxes are often overlooked when estimating bonus take-home pay.