Paychecks & taxes
Bonus Tax Calculator
Why a bonus looks so heavily taxed
Your regular paycheck is withheld based on your yearly income, which spreads the low brackets across the whole year. A bonus gets a flat 22% instead, so the bite looks bigger in the moment. Nothing is actually taxed at a special bonus rate. When you file your return, the bonus is just income like any other, and if 22% was too much, the difference comes back as a refund. If you are a high earner, 22% can be too little, and you may owe a bit more.
Federal supplemental withholding is 22% on bonuses under $1 million. This is an estimate of withholding, not your final tax, and it is not tax advice.
Common questions
Why is so much taken out of my bonus?
Employers withhold bonuses at a flat 22% federal rate, plus 7.65% payroll tax and any state tax. It is withholding, not your final bill, so an overpayment comes back when you file.
How much of a $10,000 bonus do I keep?
In Texas, about $7,035 after $2,200 federal and $765 payroll tax. A state income tax lowers it further.