Bonus Tax Calculator 2025

Estimate tax withheld from a bonus with the free bonus tax calculator for 2025. Enter your bonus, salary and filing status.

Bonus Tax Calculator

Enter your bonus above and press Calculate.

Key Notes

  • This is a simplified estimate for tax year 2025 — not the official IRS bonus tax calculation and not tax advice.
  • Example: $5,000 bonus, $52,000 salary, Single = about $1,100 federal withholding, $310 Social Security, $72.50 Medicare — take-home bonus about $3,517.50.
  • Most employers withhold federal income tax on a bonus at a flat 22% — the IRS supplemental wage rate.
  • Supplemental wages above $1,000,000 in a year are withheld at 37%.
  • The 22% is withholding, not your final tax — a bonus is ordinary income taxed at your own rates when you file.

How the bonus tax calculator works

Enter your bonus amount, your regular annual salary, any supplemental wages already paid this year, and your filing status. The calculator applies the IRS percentage method: a flat 22% federal withholding on the bonus up to $1,000,000 of supplemental wages in the year, and 37% on the amount above that. It then adds Social Security at 6.2% up to the $176,100 wage base for 2025, Medicare at 1.45%, and the 0.9% Additional Medicare Tax where it applies, and shows your take-home bonus.

This is an estimate for planning only. It is not the IRS bonus tax calculation and it is not tax advice. State tax is not included, and your employer may use the aggregate method instead, which can give a different withholding figure. Your final tax on the bonus is settled when you file your return.

What affects your bonus tax

Your bonus amount, your regular salary, how much supplemental pay you have already received this year, and your filing status all change the result. A larger bonus does not change the 22% flat withholding rate, but it can push your total income into a higher tax bracket when you file, and it can push you over the Social Security wage base or the Additional Medicare threshold.

Related guides on MyTaxGurus

Frequently asked questions

How much tax is taken out of a bonus?

For “how much tax is taken out of a bonus”, a $5,000 bonus with a $52,000 salary has about $1,482.50 withheld — $1,100 federal, $310 Social Security, and $72.50 Medicare — leaving about $3,517.50. This bonus tax calculator works out the exact figure for your bonus.

For “what is the bonus tax rate for 2025”, most employers withhold federal income tax on a bonus at a flat 22%. That is the IRS supplemental wage rate, and it applies to bonuses up to $1,000,000 of supplemental wages in the year. Above that, the rate is 37%.

For “is a bonus taxed at 22%”, the 22% is withholding, not your final tax. Your employer withholds 22% for federal income tax, but a bonus is ordinary income, so when you file it is taxed at your own marginal rate. If that rate is lower than 22%, you get the difference back as a refund.

To calculate tax on a bonus, apply 22% federal withholding to the bonus, then add Social Security at 6.2% and Medicare at 1.45%. This bonus tax calculator does that calculation for you, including the Social Security wage base and the Additional Medicare Tax.

Yes. For “does a bonus count as income”, a bonus is ordinary income. It is added to your wages on your tax return and taxed at your marginal rate, even though only 22% was withheld from the cheque.

If you ask “why is my bonus taxed so much”, it is usually the flat 22% federal withholding plus Social Security, Medicare, and state tax on top — total withholding often lands at 30% to 40% of the bonus. Your final tax may be lower, and the difference comes back when you file.

No, this is not the official IRS bonus calculator. This is a simplified bonus tax calculator estimate made by MyTaxGurus, using the IRS percentage method. For the official figure, use your payslip and your filed return.

Yes. For “does the bonus tax calculator include Social Security and Medicare”, both are shown separately in the results. Social Security is 6.2% up to the $176,100 wage base for 2025, and Medicare is 1.45% on all of the bonus.

For “what happens if my bonus is over $1 million”, supplemental wages above $1,000,000 in a calendar year must be withheld at 37% federal income tax — the top rate. The first $1,000,000 is withheld at 22%.

For “how can I reduce tax on my bonus”, the main ways are asking your employer to put part of it into a pre-tax 401(k), if your plan allows it, and timing the bonus in a lower-income year. Check with a tax professional before changing your plan.

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