See how much of your bonus you actually keep after federal withholding, Social Security, Medicare, and optional state tax — using the IRS supplemental method. Built by the Salaryitis Editorial Team on published 2025 figures · Reviewed against our editorial standards · Last reviewed 2026
The IRS treats bonuses as supplemental wages, and most employers withhold federal income tax on them using the percentage method: a flat 22% on bonuses up to $1 million, and 37% on any portion above that. On top of that come Social Security (6.2%) and Medicare (1.45%), plus state income tax if your state has one. That stack is why a bonus can feel like it shrinks fast between the announcement and your bank account.
The most important thing to understand is that the 22% is withholding, not your final tax bill. It is a flat estimate the payroll system applies up front. When you file your return, your bonus is taxed at your actual marginal rate along with the rest of your income. If 22% was more than you owed, the excess comes back as a refund; if it was less, you may owe a little.
You cannot avoid Social Security and Medicare, but you can shrink the taxable portion by routing part of the bonus into a pre-tax 401(k) or HSA. That defers income tax on the contributed amount until you withdraw it later, and it lowers the withholding taken now. Enter a 401(k) percentage above to see exactly how much that changes your take-home figure.
The flat 22% supplemental rate is often higher than the effective rate on a normal paycheck, especially for lower and middle earners whose regular withholding benefits from allowances and the standard deduction. A bonus gets none of that at withholding time, so proportionally more is taken out. It usually evens out at tax time — but seeing the breakdown here helps you plan for the take-home amount rather than the headline number.
Estimates for informational purposes only — not professional tax advice. Withholding uses the IRS percentage method; your final tax is settled when you file. Confirm specifics with a tax professional.