Frequently Asked Questions
Why is so much tax taken out of my bonus?
Bonuses are supplemental wages, so employers withhold federal tax at a flat 22 percent (37 percent on amounts over 1 million dollars) plus Social Security and Medicare, which can feel higher than your normal paycheck rate.
Is the 22 percent my final tax on the bonus?
No, it is withholding. Your true tax is settled when you file. If 22 percent is more than your marginal rate, the excess comes back as a refund; if less, you may owe more.
Does the calculator handle the Social Security wage base?
Yes. It applies the 6.2 percent Social Security tax only to the portion of the bonus that still fits under the annual wage base, based on the wages you already earned this year.
Is this tax advice?
No. It is a general estimate of bonus withholding and is not tax, financial, or legal advice. Confirm details with a tax professional.
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General information only. Not tax advice.
Tax Disclaimer: General information only. Not tax advice.
This calculator provides general tax information for educational purposes and is not tax advice. Tax laws change and vary by jurisdiction and individual circumstances. Consult a qualified tax professional or CPA for advice on your specific situation.