Bonus Amount
$3,000
Total Withheld
$1,014
Net Bonus
$1,986
Effective Rate
33.8%
Why are bonuses taxed at 22%?
The IRS treats bonuses as "supplemental wages." Under the flat percentage method (most commonly used), employers withhold federal tax at a flat 22% for bonuses up to $1 million. For bonus amounts exceeding $1 million, the rate is 37%. This is a withholding rate, not the final tax -- your actual tax may differ when you file your return.
What is the difference between the aggregate and flat method?
The flat method withholds a flat 22% on the bonus. The aggregate method combines your bonus with your regular paycheck and withholds tax on the total at your marginal rate, then subtracts what was already withheld from your regular pay. The aggregate method can result in higher withholding if the combined amount pushes you into a higher bracket.
Will I get my bonus tax back?
If your effective tax rate is lower than the 22% flat withholding rate, you may receive a refund when you file your tax return. Conversely, if your total income puts you in a higher bracket, you might owe additional tax. The 22% is just a withholding estimate, not the final tax amount.
Are bonuses subject to FICA taxes?
Yes, bonuses are subject to Social Security tax (6.2%) up to the wage base limit of $176,100 in 2025, and Medicare tax (1.45%) on all amounts. If your combined salary and bonus exceed $200,000 (single), an additional 0.9% Medicare surtax applies to the excess.
IRS-Aligned: Uses the flat percentage method for supplemental wage withholding per IRS guidelines. Actual tax liability may differ when you file your annual return.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- IRS Publication 15-T — Federal Income Tax Withholding Methods
- IRS Publication 525 — Taxable and Nontaxable Income
- IRS Topic 751 — Social Security and Medicare Withholding Rates
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.