$
Before tax
$
Without the bonus
More options· Single
For the tax you’ll owe when you file
$
Before the bonus, for Social Security
$
Over $1 million, 37% applies
Your bonus after tax
$2,941
$2,059 withheld, 41.18% of your bonus
- Federal tax (22%)
- $1,100
- State & local
- $577
- You keep$2,941
- Federal income tax$1,100
- Social Security & Medicare$383
- State & local$577
What this means
Bonuses aren’t taxed more than other pay. The flat 22% is only withholding, a prepayment: your real tax is worked out on your return, where the bonus is taxed like the rest of your pay.
The 22% withheld is about right: the bonus adds roughly $1,100 to your federal tax for the year.
Breakdown
| Per year | |
|---|---|
| Bonus | $5,000.00 |
| Federal income tax | -$1,100.00 |
| Social Security | -$310.00 |
| Medicare | -$72.50 |
| California income tax | -$511.50 |
| CA SDI | -$65.00 |
| You keep | $2,941.00 |
How your bonus is taxed
- Federal: a flat 22% when your employer pays the bonus separately (37% on bonuses over $1 million in a year).
- Social Security and Medicare: 7.65%, the same as your regular pay.
- California: California withholds 10.23% from bonuses.
- When you file: the bonus is taxed at your normal rates with the rest of your income, so withholding is only a down payment.
Assumptions in this estimate
- Assumes your employer pays the bonus separately and uses the 22% federal flat rate. Some employers add it to a regular paycheck and withhold as if you earned that much every pay period, which can take more or less.
- Withholding isn’t your final tax. When you file, the bonus is taxed at your normal rates with the rest of your income, so you may get some back or owe more.
- The tax you’ll really owe assumes the standard deduction and no other income or credits.
- California lets employers use this flat rate or withhold with the regular tables, so your employer may take a different amount.