Bonus tax calculator
Getting a bonus? Find out what you'll actually take home after HMRC or the IRS takes their cut. This is an educational estimate, not legal advice.
How your bonus is taxed
A bonus almost never lands in your account at full value, and the reason is withholding. In the United States, bonuses count as supplemental wages, and employers commonly withhold a flat 22% for federal tax — separate from how your regular paycheck is taxed. On top of that come Social Security and Medicare (FICA) and any state income tax. This calculator lets you set a single combined deduction rate and shows what actually reaches you.
The key thing to understand is that withholding is not the same as your final tax bill. The 22% is a flat rate the employer applies up front; your true liability depends on your total income for the year and is reconciled when you file your return. If too much was held back, the excess comes back as a refund. Outside the US the mechanics differ — a bonus is usually taxed at your marginal rate plus social contributions — so you can enter your own effective percentage to model it.
Treat the result as a planning estimate rather than an exact net figure, since real-world deductions depend on your full circumstances. Download the PDF summary to keep a record of the estimate when budgeting around a bonus.
Frequently asked questions
How much tax will I pay on my bonus?+−
In the US, employers commonly withhold a flat 22% federal rate on bonuses (the supplemental wage rate), with Social Security, Medicare and any state tax on top. This tool estimates your take-home from the deduction rate you enter.
Why is so much taken out of my bonus?+−
Bonuses are treated as supplemental wages and are often withheld at a flat rate that may be higher than your usual paycheck withholding. It can look like the bonus is 'taxed more', but it is withholding — your real tax is settled when you file.
Is a bonus taxed at a higher rate?+−
Not in terms of your actual tax rate. The 22% US figure is a withholding rate, not your final tax rate. If too much was withheld, you get it back as a refund; if too little, you owe the difference at filing.
What is the 22% bonus tax rate?+−
It is the IRS flat federal withholding rate for supplemental wages such as bonuses, up to $1 million. Above $1 million, the excess is withheld at the top federal rate. This is the default in the calculator for the US.
How do I estimate my take-home bonus in other countries?+−
Outside the US, bonuses are usually taxed at your marginal income-tax rate plus social contributions. Enter your combined effective deduction percentage to estimate the net amount.
Will my bonus push me into a higher tax bracket?+−
Only the portion of income above a bracket threshold is taxed at the higher rate — not your whole income. A bonus can increase withholding for that period, but it does not retroactively raise the tax on your other earnings.
Legal basis and primary sources
All statutory figures are sourced directly from official government legislation and guidance. See our methodology →