Bonus Tax Calculator
Estimate Bonus Withholding & Net Pay
Frequently Asked Questions
- It applies your selected main tax rate, state or local rate, and any fixed other deductions to the gross bonus. Net bonus = gross bonus - total taxes - other deductions.
- In the U.S., bonuses are generally treated as supplemental wages for withholding. Employers may use a flat-rate method or an aggregate method described by the IRS in Publication 15 and Publication 15-T.
- No. Withholding is only a prepayment. Your final tax is settled when you file your return, so payroll withholding on a bonus can differ from the tax you ultimately owe.
- Use other deductions for payroll taxes, retirement contributions, benefit premiums, garnishments, or any fixed amounts taken from the bonus but not covered by the two percentage tax fields.
- Start with Publication 15, Publication 15-T, and the general IRS tax withholding guidance.