Washington Bonus Tax Calculator 2025
Calculate your take-home bonus in seconds with 2025 Washington tax rates.
Gross Bonus
$0.00
The total bonus amount before taxes.
Federal Tax
$0.00
Federal tax withheld at the 2025 supplemental rate of 22%.
Medicare Tax
$0.00
Medicare tax withheld at the 2025 rate of 1.45%.
Social Security Tax
$0.00
Social Security tax withheld at the 2025 rate of 6.2%, up to the wage base limit of $176,100.
Total Tax Withheld
$0.00
The sum of all taxes withheld from your bonus.
Net Bonus (Take-Home)
$0.00
The amount you receive after all taxes are deducted.
How to Use This Calculator
1
Step 1: Enter Your Bonus Amount
Type your gross bonus amount (e.g., $5,000) in the first field. Use numbers only.
2
Step 2: Select Pay Frequency
Choose how often you’re paid (e.g., Monthly) from the dropdown. This is for context.
3
Step 3: Click Calculate
Hit the 'Calculate' button to instantly see your estimated net bonus after taxes.
Example: For a $5,000 bonus with Monthly pay frequency, you’ll see results like: Gross Bonus: $5,000.00, Federal Tax: $1,100.00, Medicare Tax: $72.50, Social Security Tax: $310.00, Total Tax Withheld: $1,482.50, Net Bonus (Take-Home): $3,517.50.
Need more details on 2025 tax rates? Check out the official IRS guidelines.
Disclaimer: This calculator provides an estimate for informational purposes only based on the provided 2025 supplemental tax rates (Federal 22%, Medicare 1.45%, Social Security 6.2% up to $176,100). Washington State does not have state income tax. These calculations do not account for pre-tax deductions, state-specific withholdings (other than income tax), local taxes, Additional Medicare Tax, or individual tax situations. Consult with a qualified tax professional for personalized advice. The rates used are based on projections and information available as of early 2025 and are subject to change.
FAQs about Bonus Tax in Washington for 2025
1. What is the Washington state income tax rate on bonuses for 2025?
Washington state does not have a state income tax, so there is no Washington state tax on bonuses in 2025. However, federal taxes will still apply to your bonus income, including the federal supplemental tax rate of 22% for bonuses under $1 million, plus Medicare and Social Security taxes. Washington residents only need to account for federal withholding on their bonus payments.
2. How are bonuses taxed in Washington state in 2025?
Bonuses in Washington state are only subject to federal taxation in 2025, as Washington has no state income tax. The IRS typically withholds at the 22% supplemental wage rate for bonuses under $1 million, plus the standard 7.65% for FICA taxes (6.2% for Social Security and 1.45% for Medicare). This means approximately 29.65% will be withheld from your bonus payment before you receive it.
3. Does Washington have a supplemental tax rate for bonuses in 2025?
Washington state does not have a supplemental tax rate for bonuses in 2025 because it has no state income tax. Only federal taxes apply to bonuses in Washington, with the IRS requiring 22% withholding for supplemental wages (including bonuses) under $1 million. For bonuses exceeding $1 million, the federal supplemental rate increases to 37% for the amount over $1 million.
4. What is the federal supplemental tax rate for bonuses in 2025?
The federal supplemental tax rate for bonuses in 2025 is 22% for amounts up to $1 million. For bonus amounts exceeding $1 million, the rate increases to 37% for the portion above $1 million. These rates are specifically for supplemental wages, which include bonuses, commissions, overtime pay, and other payments separate from regular wages.
5. How can I calculate my take-home bonus amount in Washington for 2025?
To calculate your take-home bonus in Washington for 2025, start with your gross bonus amount and subtract 22% for federal income tax withholding, 6.2% for Social Security tax (up to the wage base limit of $176,100), and 1.45% for Medicare tax. For example, on a $10,000 bonus, approximately $2,965 would be withheld ($2,200 for federal income tax, $620 for Social Security, and $145 for Medicare), leaving you with around $7,035 as your take-home amount.
6. Are year-end bonuses taxed differently than regular bonuses in Washington in 2025?
Year-end bonuses are not taxed differently than other bonuses in Washington in 2025. All bonuses are subject to the same federal supplemental wage withholding rate of 22% (for amounts under $1 million), regardless of when they're paid during the year. However, if your year-end bonus pushes your cumulative annual income into a higher tax bracket, you might owe additional taxes when filing your federal tax return for the year.
7. Is there a way to reduce taxes on my bonus in Washington state for 2025?
To reduce taxes on your 2025 bonus in Washington state, consider contributing to tax-advantaged accounts like a 401(k) or HSA before receiving your bonus, which can lower your taxable income. Another strategy is requesting your employer to combine your bonus with regular wages for potentially lower withholding if your regular tax rate is below 22%. Additionally, timing your bonus receipt between tax years might be advantageous depending on your expected income in each year.
8. What is the Social Security wage base limit for 2025 and how does it affect bonus taxation?
The Social Security wage base limit for 2025 is $176,100, meaning Social Security tax (6.2%) only applies to the first $176,100 of wages and bonuses combined. If your year-to-date income has already reached this threshold before receiving your bonus, your bonus will not be subject to the 6.2% Social Security tax, only the 1.45% Medicare tax and 22% federal income tax withholding. This can effectively reduce your tax rate on the bonus by 6.2%.
9. Do I need to pay Washington state B&O tax on bonuses received in 2025?
No, individual employees do not pay Washington Business & Occupation (B&O) tax on bonuses received in 2025. The B&O tax applies to businesses operating in Washington, not to personal income such as salaries or bonuses. As an employee receiving a bonus, you only need to consider federal taxes on your bonus income, as Washington has no state income tax on personal earnings.
10. Will bonus tax rates change in Washington for 2025?
There are no expected changes to bonus tax rates in Washington for 2025 since Washington state doesn't impose an income tax on wages or bonuses. The federal supplemental wage withholding rate is expected to remain at 22% for bonuses under $1 million. Any changes to federal tax rates would require legislation from Congress, and no such changes specific to supplemental wages have been announced for 2025.
11. How does Washington's lack of state income tax benefit bonus recipients in 2025?
Washington's lack of state income tax significantly benefits bonus recipients in 2025 because they avoid state-level taxation that employees in other states face. For example, neighboring Oregon has a top marginal tax rate of 9.9%, meaning Washington residents receiving a $10,000 bonus could save up to $990 compared to Oregon residents. This tax advantage makes Washington one of the most favorable states for receiving bonus compensation.
12. Are performance bonuses taxed the same as holiday bonuses in Washington 2025?
Yes, performance bonuses and holiday bonuses are taxed identically in Washington in 2025. Both types of bonuses are classified as supplemental wages by the IRS and subject to the same 22% federal withholding rate (for amounts under $1 million), plus Medicare and Social Security taxes. The purpose or timing of the bonus does not affect its tax treatment under current federal tax regulations.
13. What documentation should I keep for bonus tax purposes in Washington for 2025?
For bonus tax purposes in Washington for 2025, keep your final paystub showing the bonus amount and all tax withholdings, your W-2 form which will include your bonus in Box 1 (wages) and the taxes withheld in Boxes 2, 4, and 6, and any documentation from your employer specifying the bonus amount and purpose. These records are crucial for accurate tax filing and may be needed if there are discrepancies or if you're audited by the IRS.
14. How does working remotely from Washington affect bonus taxation in 2025?
Working remotely from Washington in 2025 means your bonus is only subject to federal taxes since Washington has no state income tax. However, if you work for an out-of-state employer, taxation can become complex if you physically work in multiple states during the year. Some states may try to tax a portion of your bonus based on the number of days worked in their jurisdiction, so keep detailed records of your work locations throughout the year.
15. Is the Medicare surtax applicable to bonuses in Washington for high earners in 2025?
Yes, the Additional Medicare Tax of 0.9% applies to bonuses for high earners in Washington in 2025 when their yearly income exceeds $200,000 for single filers or $250,000 for married filing jointly. This surtax is in addition to the regular 1.45% Medicare tax, bringing the total Medicare tax rate to 2.35% on income above these thresholds. Employers must begin withholding this additional amount once an employee's wages exceed $200,000 for the year.