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Bonus Calculator

Estimate your bonus paycheck: gross bonus, common withholding methods and the estimated take-home amount.

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Estimate only — FICA and actual withholding vary; your tax return settles the difference.

From bonus number to bonus paycheck

A "$5,000 bonus" is a gross number — the check that lands is smaller, and by how much confuses almost everyone the first time. Bonuses are supplemental wages in U.S. payroll terms, and employers commonly withhold federal tax on them at a flat 22% (for amounts under $1 million), plus 7.65% FICA and any state tax. This calculator estimates the take-home using that standard method so a bonus offer, year-end payout or signing bonus no longer surprises you.

The formula (flat 22% method)

Net ≈ Gross − (22% federal) − (7.65% FICA) − (state %)
Example: $5,000 → $5,000 − $1,100 − $382.50 − $250(5%) ≈ $3,268

Two details matter. First, 22% flat withholding is not your final tax: bonuses are ordinary income, so the true bill is settled on your return — if your real bracket is lower, you get the over-withholding back as a refund; if higher, you may owe. Second, the aggregate method (bonus added to a regular paycheck) can push that check's withholding higher; many payroll systems still land near the flat method for moderate bonuses.

Reference: take-home at 22% federal, 7.65% FICA, 5% state

Gross bonusFederal (22%)FICAState (5%)Est. net
$1,000$220$76.50$50~$654
$5,000$1,100$382.50$250~$3,268
$10,000$2,200$765$500~$6,535
$25,000$5,500$1,912.50$1,250~$16,338

Above $1 million in supplemental wages in a year, the federal flat rate rises to 37% — a good problem to have, and a different calculation.

When you need this number

  • Evaluating offers: compare a $10,000 bonus to $10,000 of salary — the salary side also carries taxes, but it compounds into raises and 401k contributions; the bonus is one-time.
  • Planning a bonus spend: budget the net, not the gross, and consider directing a slice to retirement before lifestyle creep.
  • Withholding checks: if your total income is modest, a 22% flat withhold may over-collect — plan for a refund, or adjust your W-4 in December.
  • Signing bonuses: many are clawback-protected; the net you keep if you leave early can differ from day one.
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Frequently asked questions

Why is my bonus taxed so much more than my salary?
It usually is not taxed more overall — it is withheld at the flat 22% supplemental rate, which can exceed or undershoot your true bracket. The annual return trues everything up; over-withholding comes back as a refund.
Do bonuses pay Social Security and Medicare?
Yes — bonuses are wages for FICA purposes, so 6.2% Social Security (up to the annual wage base) and 1.45% Medicare apply, plus the employer's matching share.
Can I avoid taxes on my bonus?
You cannot skip income tax, but pre-tax deferrals help: contributing part of a bonus to a traditional 401(k) (within limits) or an HSA reduces the taxable amount now. Ask payroll before the bonus runs.
What is a clawback on a signing bonus?
A repayment obligation if you leave within a set period. If you might exit early, budget for returning part of the net you received — clawbacks usually reference the gross.
How do RSUs and performance shares differ from a cash bonus?
Equity vests on a schedule and is taxed as income at vesting value; cash bonuses land at once. RSU withholding is often at the flat rate too, but share sales make the cash timing different.

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