A bonus withheld at 22% is not the same as a bonus taxed at 22% — this is a withholding rate, reconciled against your actual tax at filing.
How it works
Supplemental wages (including bonuses) are withheld at a flat 22%, rising to 37% on the portion of a person’s cumulative supplemental wages in a calendar year that exceeds $1,000,000.
What this does not include
Withholding is not the same as your final tax bill — a bonus is ultimately taxed at your actual marginal rate when you file, which can be higher or lower than the 22% withheld, producing either a smaller refund or a balance due.
How to use this calculator
- Enter the bonus amount.
- Enter any supplemental wages already paid to you this calendar year, if relevant to the $1,000,000 threshold.
Frequently asked questions
Why does my bonus feel over-taxed?
The flat 22% withholding is often higher than a lower earner’s actual marginal rate, which shows up as a larger refund (not a lower total tax) at filing — the withholding and the final tax are two different numbers.
Can my employer withhold differently?
Yes — employers can also use the aggregate method (combining the bonus with regular wages and withholding as if it were one paycheck), which often withholds a different amount than the flat 22% rate.
Does the 37% rate apply often?
Only to the portion of a single employee’s supplemental wages that crosses $1,000,000 in one calendar year — rare outside very high earners or large one-time payouts.
