CalcHelm

Bonus Tax Calculator

Estimate federal withholding on a bonus using the IRS's flat-rate method (22%, or 37% above $1,000,000 in a year), with an optional comparison to the aggregate method. Calculations run in your browser.

Other bonuses, commissions, etc. paid to you earlier in the calendar year — only matters if your total supplemental wages exceed $1,000,000.

Compare with the aggregate method

Federal withholding (flat rate method)

$1,100

22.0% effective rate on this bonus

At 22%

$5,000

This is federal withholding only. Social Security, Medicare, and state tax also apply to bonuses the same as regular wages. Withholding is an estimate toward what you'll owe at filing, not a final tax amount.

Bonus tax calculator FAQs

Why is my bonus taxed at 22%?

The IRS allows employers to withhold a flat 22% on supplemental wages like bonuses, instead of running them through your regular W-4 withholding — it's a withholding shortcut, not your actual tax rate. Your bonus is taxed at your normal marginal rate when you file; if 22% withheld too much or too little compared to your real rate, you get it back (or owe it) at tax time.

Can my employer choose not to use the flat rate?

Yes — the IRS also allows the 'aggregate method,' combining your bonus with a regular paycheck and withholding on the total as if it were one payment. This can withhold more or less than the flat 22% depending on your income level, and is required if income tax wasn't withheld from your regular wages in the current or immediately preceding calendar year.

Does the 22% rate ever change?

It can, since it's tied to the second-lowest federal tax bracket. It's held at 22% since 2018 and remains 22% for 2026. If your total supplemental wages from one employer exceed $1,000,000 in a calendar year, the excess is withheld at 37% (the top rate) regardless of your W-4.

Read the full explanation of why bonuses are withheld this way →