Bonus Tax Calculator
Estimate federal withholding on a bonus using the standard supplemental wage rules. Calculations run locally in your browser. No account. No stored data.
This tool provides a narrow estimate only. Verify final withholding with payroll records or official IRS guidance.
Calculator Tool
When This Calculator Is Useful
This calculator is useful when you want a fast federal-only estimate for a bonus, incentive payment, retention payment, commission payout, or another supplemental wage item that may be withheld differently from regular salary. It is built for users who want a simple answer before the payroll date arrives.
It is especially useful when you are comparing multiple bonus amounts, checking how year-to-date supplemental wages affect the federal withholding rate, or reviewing a rough after-withholding estimate before talking to payroll.
What This Calculator Does
This calculator estimates the federal withholding on a bonus or other supplemental wage payment using the standard flat supplemental wage rate. For most bonuses under the federal threshold, the estimate uses 22%. When total supplemental wages exceed the high-threshold level, the estimate uses 37% on the current bonus for a deterministic top-line estimate.
It answers the narrow question, “How much federal withholding might come out of my bonus?” It does not try to model state taxes, payroll system customizations, retirement contributions, or every employer-specific pay configuration.
Example Calculation
Suppose you receive a $10,000 bonus and your year-to-date supplemental wages before this payment are $0. Under the standard flat federal supplemental rate, the withholding estimate is:
- Federal withholding rate: 22%
- Estimated federal withholding: $2,200
- Estimated net after federal withholding: $7,800
If the current bonus plus prior supplemental wages pushes the annual total above the high federal threshold, the estimate switches to 37% for the current bonus amount.
Formula
Estimated federal withholding = Current bonus amount × Federal supplemental wage rate
Estimated net bonus = Current bonus amount − Estimated federal withholding
Federal supplemental wage rate used here:
- 22% when total supplemental wages do not exceed $1,000,000
- 37% when total supplemental wages exceed $1,000,000
Calculation Methodology
This calculator applies the flat federal supplemental wage withholding method in a deterministic way. It adds the current bonus to the year-to-date supplemental wages entered by the user. If that total is above $1,000,000, the calculator applies a 37% federal withholding estimate to the current bonus. Otherwise, it applies 22%.
The output is federal-only by design. It does not include state income tax, Social Security, Medicare, retirement deductions, insurance deductions, or employer-specific payroll adjustments. Filing status is displayed for user context but is not used to change the flat federal supplemental rate in this tool.
Example Scenarios
- Year-end bonus review: Estimate the federal withholding on a one-time bonus before the payment date.
- Retention payment planning: Check a rough federal-only estimate for a retention or sign-on payout.
- High-income threshold check: See whether prior supplemental wages may push the current bonus estimate to the 37% rate.
Understanding Bonus Withholding
Bonus withholding often looks higher than expected because employers commonly use the supplemental wage rules for federal withholding rather than the same process used for regular salary. That withholding amount is not always the same thing as your final annual tax liability.
This is why a clean estimate tool is useful: it gives you a quick federal-only preview of what may be withheld from the payment itself, while still keeping the explanation narrow and verifiable.
Common Scenarios
- Annual bonus: Estimate how much federal withholding may come out of a standard year-end bonus.
- Commission or supplemental pay: Use a quick federal-only estimate for taxable supplemental wages paid outside normal salary.
- Threshold check: Test whether high total supplemental wages may push the current bonus estimate to the higher federal rate.
FAQ
Does this calculator include state taxes?
No. This is a federal-only estimate.
Does this calculator include Social Security or Medicare?
No. It focuses on federal supplemental wage withholding only.
Why does the rate switch to 37%?
That higher rate is used when total supplemental wages exceed the high-threshold level used by federal withholding rules.
Is this my final bonus take-home pay?
No. Actual payroll outcomes may differ because of state taxes, deductions, and employer payroll handling.