How the calculator works
- Federal income tax: the flat 22% rate on a bonus paid separately, or 37% on the part of the year’s bonuses over $1 million.
- Social Security and Medicare: 6.2% Social Security, up to the yearly limit, and 1.45% Medicare, plus 0.9% on pay over $200,000.
- State and local tax: your state’s flat bonus rate where it has one, or an estimate of the extra state tax where it doesn’t. Local taxes such as New York City’s and state programs such as disability insurance come out too.
- When you file: the calculator also works out the federal tax the bonus really adds at your own rates, with the standard deduction, and compares it with the 22% withheld.
What comes out of a bonus, by state
On a $5,000 bonus, $1,100 of federal income tax and $383 of Social Security and Medicare come out in every state. What the state takes, for a single filer earning $75,000:
| State | State and local | You take home |
|---|---|---|
| Texas | – | $3,518 |
| Florida | – | $3,518 |
| Arizona | $100 (2.00% flat rate) | $3,418 |
| Ohio | $138 (2.75% flat rate) | $3,380 |
| Pennsylvania | $157 (3.07% flat rate) | $3,361 |
| North Carolina | $205 (4.09% flat rate) | $3,313 |
| Colorado | $242 | $3,276 |
| Illinois | $248 (4.95% flat rate) | $3,270 |
| Georgia | $250 (4.99% flat rate) | $3,268 |
| Massachusetts | $273 (5.00% flat rate) | $3,245 |
| New Jersey | $352 | $3,165 |
| California | $577 (10.23% flat rate) | $2,941 |
| New York | $632 (11.70% flat rate) | $2,886 |
Will you get some back?
A $5,000 bonus for a single filer, against the federal income tax it really adds when you file:
| Salary | Withheld | Tax it adds | At tax time |
|---|---|---|---|
| $30,000 | $1,100 | $600 | $500 back |
| $50,000 | $1,100 | $600 | $500 back |
| $75,000 | $1,100 | $1,100 | About even |
| $120,000 | $1,100 | $1,164 | $64 more to pay |
| $250,000 | $1,100 | $1,600 | $500 more to pay |
| $500,000 | $1,100 | $1,750 | $650 more to pay |
The 22% withheld is a flat rate, but the tax a bonus really adds depends on your own bracket. In the 10% and 12% brackets you’ll usually get some back when you file; in the 24% bracket and above, you may owe a little more.
Can I lower the tax on my bonus?
You can’t change the withholding rate, but you can lower your tax:
- Put it in your 401(k). If your plan allows contributions from bonuses, the money goes in before income tax, up to the yearly limit ($24,500 in 2026).
- Check your withholding. If you’ll get a big refund anyway, you could give your employer a new Form W-4 to take less from your regular paychecks.
Bonus vs paycheck
A bonus isn’t taxed at a higher rate than your salary. It just looks that way because of how it’s withheld. To see your regular take-home pay, use our paycheck calculator, and to estimate your refund for the year, our tax refund calculator.