Bonus Take-Home Estimator
Estimate a bonus after federal withholding, payroll tax, state withholding, and deductions.
01
Withholding and tax are different
Withholding is money sent toward expected tax during the year. Final income tax is calculated on the tax return using annual income, deductions, credits, filing status, and other factors. A bonus check can therefore withhold more or less than the tax ultimately attributable to that income.
This is the central reason a bonus may feel heavily taxed even though it is not automatically subject to a special final income-tax rate.
02
How employers may withhold
IRS Publication 15 identifies bonuses as supplemental wages. For separately identified supplemental wages of $1 million or less, an employer that meets the rule may use a flat 22% federal withholding method in 2026. An employer may instead use an aggregation method that treats the bonus with regular wages for withholding calculations.
The check may also show Social Security and Medicare tax, state or local withholding, retirement contributions, or other deductions. Social Security wage-base and Additional Medicare rules can change payroll tax for some workers.
03
Plan with a range, not a promise
Use the employer’s prior bonus check or payroll explanation when possible. If nothing is available, the calculator’s 22% federal default provides one reasonable 2026 scenario for a separately identified bonus, but the fields should remain editable.
After payment, compare the estimate with the earnings statement. If total annual withholding appears significantly off, the IRS provides a withholding estimator. Do not change a Form W-4 based only on one surprising check without considering the entire year.
WORKED EXAMPLE
Put it into practice
A $5,000 bonus with 22% federal withholding, 7.65% employee Social Security and Medicare tax, and 3% state withholding would produce an estimated $3,367.50 check before other deductions.
ACTION PLAN
What to do next
- Ask payroll whether the bonus is separate or combined with regular wages.
- Review last year’s bonus earnings line if available.
- Edit state and other deductions in the calculator.
- Evaluate annual withholding rather than judging final tax from one check.
FAQ
Common questions
Are bonuses taxed more than salary?
They are included in taxable wages, but the withholding method can make the check look different. Final income tax depends on the annual return.
Why did my employer not use 22%?
The flat method is not the only permitted method, and eligibility depends on the payment and withholding circumstances.
SOURCES
Official references
Sources support the rules and definitions discussed. Examples and planning interpretations are produced by Earn Plan Save.
Educational information only. This guide is not financial, tax, legal, or employment advice. Verify important decisions with official documents and an appropriate qualified professional.