Bonus Tax Calculator 2025
Accurately calculate federal and state taxes on your bonus payment across all 50 U.S. states.
Enter Your Bonus Details
State Tax Information:
Select a state to see tax information.
Your Bonus Tax Breakdown
Gross Bonus:
$0.00
Federal Income Tax:
$0.00
State Income Tax:
$0.00
Social Security Tax:
$0.00
Medicare Tax:
$0.00
Total Tax Withholding:
$0.00
Net Bonus Payment:
$0.00
Bonus Tax Calculator 2025: All 50 U.S. States
USE Our U.S. STATE Specific Calculator to Calculate your bonus taxes quickly and accurately
FAQs about Bonus Tax in 2025
How is a bonus taxed in 2025?
Bonuses in 2025 are taxed as supplemental income at a federal rate of 22% up to $1 million, or 37% above that, based on current IRS rules. State taxes may also apply depending on where you live. Check with a calculator or employer for exact amounts, as rates could shift with new laws.
What is the bonus tax rate for 2025?
The federal bonus tax rate for 2025 is expected to be 22% for amounts up to $1 million and 37% beyond that, unless updated by legislation. State rates vary, like 0% in Florida or 10.3% in California. Monitor IRS announcements for changes by year-end.
How do I calculate tax on a bonus?
Multiply your bonus by the federal supplemental rate (22% or 37%), then add your state tax rate if applicable. For a $5,000 bonus at 22% federal and 5% state, you’d pay $1,350 total tax. Use an online calculator for accuracy with your specific income.
Why is my bonus taxed so high?
Bonuses are taxed at a flat 22% or 37% federal rate as supplemental income, plus state taxes, without immediate deductions. This makes withholding seem high, but your actual rate adjusts on your tax return. Refunds may lower the net impact later.
Does a bonus tax calculator include Social Security and Medicare?
A good bonus tax calculator includes Social Security (6.2% up to $168,600 in 2025) and Medicare (1.45%, no cap) alongside income taxes. For a $5,000 bonus, that’s $382.50 extra in FICA taxes. Check the tool’s settings to ensure these are factored in.
How much tax will I pay on a $10,000 bonus in 2025?
A $10,000 bonus at 22% federal tax is $2,200, plus state tax (e.g., $500 at 5%), totaling $2,700 withheld. Your net would be $7,300 before adjustments. Exact amounts vary by state and income—use a calculator for precision.
Can I lower my bonus tax withholding?
You can adjust your W-4 with your employer to lower bonus withholding if you expect a lower overall tax rate. This won’t change the tax owed, just what’s taken upfront. Consult a tax pro to avoid underpayment penalties.
What’s the difference between bonus tax and regular income tax?
Bonuses are taxed at a flat 22% or 37% federal rate as supplemental income, while regular pay uses graduated rates based on your tax bracket. Both include Social Security and Medicare, but bonuses often feel over-taxed upfront. Your final tax evens out on your return.
Will bonus tax rates change in 2025?
As of March 19, 2025, bonus tax rates are set at 22% or 37% federally, but new laws could adjust this by year-end. State rates might also shift with local policy changes. Check IRS updates closer to December for confirmation.
How do I find my state bonus tax rate?
Look up your state’s income tax rate online—some like Texas have 0%, while California hits 10.3% for high earners. Bonuses follow the same state rate as regular income unless specified otherwise. Your payroll department or a tax site can confirm.
Is there a flat tax rate for bonuses in 2025?
Yes, the IRS applies a flat 22% federal rate to bonuses up to $1 million and 37% above that in 2025. State taxes may add a variable rate depending on your location. This flat rate simplifies withholding but adjusts later on your return.
How does a bonus affect my tax bracket in 2025?
A bonus increases your total income, which might push you into a higher tax bracket for the year. However, only the portion above each bracket’s threshold is taxed at the higher rate. Withholding on the bonus itself stays at 22% or 37% regardless.
Can I use a bonus tax calculator for multiple states?
Yes, many calculators let you input different state tax rates to compare results. Enter your bonus, federal rate, and each state’s rate for accurate totals. Check tools like SmartAsset or TurboTax for multi-state options.
What happens if too much tax is withheld from my bonus?
If too much tax is withheld, you’ll get a refund when you file your 2025 tax return based on your total income. The flat 22% or 37% rate often overestimates for lower earners. Adjust your W-4 to reduce this in the future.
Are holiday bonuses taxed differently in 2025?
No, holiday bonuses are taxed the same as other bonuses—22% or 37% federally plus state rates. They’re still supplemental income under IRS rules. Timing doesn’t change the calculation, just when you receive it.
How do I calculate my net bonus after taxes?
Subtract federal (22% or 37%), state, Social Security (6.2%), and Medicare (1.45%) taxes from your bonus amount. For a $5,000 bonus, you’d lose about $1,732.50 total, leaving $3,267.50 net. A calculator simplifies this with your exact rates.
Do bonuses have a separate tax rate from salary?
Yes, bonuses use a flat 22% or 37% federal rate, while salary is taxed progressively based on brackets. Both include Social Security and Medicare, but bonus withholding doesn’t factor in deductions upfront. Your final tax combines them annually.
How much tax is taken out of a $5,000 bonus?
For a $5,000 bonus, federal tax at 22% is $1,100, plus state (e.g., $250 at 5%) and FICA ($382.50), totaling $1,732.50 withheld. Your net would be $3,267.50. Rates depend on your state and income cap for Social Security.
Can I avoid taxes on my bonus by putting it in a 401(k)?
Yes, if your employer allows, you can defer part or all of your bonus to a 401(k), avoiding income tax up to the 2025 limit ($23,000). You’ll still pay Social Security and Medicare taxes on it. Check with HR to set this up before payout.
Why don’t bonus tax calculators match my paycheck?
Calculators might miss your specific deductions, state rates, or updated FICA caps, causing discrepancies. Your employer may also adjust withholding based on your W-4 settings. Double-check the tool’s inputs against your pay stub for accuracy.