What your bonus actually pays you.

How bonus withholding works

The IRS treats a bonus as supplemental wages. Most employers withhold federal income tax at a flat 22%, whatever your W-4 says. Once your supplemental pay passes $1 million in a calendar year, the excess must be withheld at 37%.

State withholding is added on top. This calculator uses a rough top rate for each state at high incomes, and Medicare at 1.45%.

What this doesn’t include

• Social Security (6.2%). It also comes out of a bonus until your wages for the year pass the Social Security wage base ($184,500 in 2026). Many high earners are past it by bonus season; if you aren’t, expect less.
• Additional Medicare Tax (0.9%) on wages above $200,000 in the year.
• 401(k) deferrals your plan may take from the bonus, and city taxes.

Withholding isn’t your tax bill

If your top federal bracket is 24% or higher, 22% withheld is less than the tax you’ll owe on the bonus. The gap shows up in April. Keeping part of the cushion bucket for that is the quiet way to avoid a surprise.

Self-employed instead? Try the quarterly tax set-aside calculator.

An estimate, not tax advice. It uses flat rates and doesn’t know your full tax picture; check your pay stub or a tax professional before you act on it.