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Military Bonus Tax Calculator 2025

Gross Bonus Amount: $0.00
Federal Tax Withheld (22%): $0.00
State Tax Withheld: $0.00
Social Security (6.2%): $0.00
Medicare (1.45%): $0.00
Additional Medicare (0.9%): $0.00
Total Taxes Withheld: $0.00
Net Bonus (Take-Home): $0.00
Try Army Reenlistment Bonus Calculator to estimate 2025 bonus tax
How to Use This Calculator
1
Enter Bonus Amount
Input the total gross amount of your military bonus before any deductions.
2
Select Filing Status
Choose your tax filing status to ensure accurate withholding calculations.
3
Add Annual Pay
Enter your regular annual military pay to calculate additional Medicare tax if applicable.
4
Set State Tax Rate
Enter your state income tax rate, or 0 if your state doesn't tax military income.
5
Combat Pay Status
Select if you served in a combat zone, which may provide tax exclusion benefits.
6
Review Results
View your detailed tax breakdown and net take-home bonus amount instantly.

How Much Are Military Bonuses Taxed in 2025?

Military bonuses are taxed at a 22% federal rate in 2025. You also pay Social Security and Medicare taxes. State taxes depend on where you live.

Federal Tax on Military Bonuses

Your military bonus gets taxed differently than regular pay. The government takes out a flat 22% for federal taxes. This happens automatically when you receive your bonus.

Here’s what gets withheld:

  • 22% federal income tax (under $1 million)
  • 37% federal income tax (over $1 million)
  • 6.2% Social Security tax
  • 1.45% Medicare tax

So a $10,000 bonus loses about $2,970 to taxes. You can’t change this withholding rate. This is set by federal law.

State Taxes on Military Bonuses

State taxes vary by where you live. Some states don’t tax bonuses at all.

No State Tax:

  • Alaska, Florida, Nevada, South Dakota
  • Texas, Washington, Wyoming
  • New Hampshire, Tennessee

 

States With Income Tax:

Most other states tax your bonus as regular income. California takes up to 13.3%. New York takes up to 10.9%.

If you live in Texas, you only pay federal taxes. If you live in California, you pay both federal and state.

How Withholding Works

When you get your bonus, taxes come out immediately. This is called automatic withholding. You can’t opt out of this.

The total depends on:

  1. Your bonus amount
  2. Your state of residence
  3. Current tax laws

Combat Zone Exception

If you receive your bonus in a combat zone, different rules apply. Combat pay can be completely tax-free. This saves you thousands on large bonuses.

You must be in a designated combat zone. This includes deployments to qualifying areas.

Frequently Asked Questions

How much tax is taken from military bonuses in 2025?

Military bonuses are taxed at a flat 22% federal rate for amounts up to $1 million. Your employer withholds this tax automatically from your bonus payment. You also pay Social Security and Medicare taxes on bonus money. State taxes may apply based on your home state.

Are military bonuses taxed differently than regular pay?

Military bonuses use different withholding rules than regular military pay. Bonuses get taxed at the flat 22% rate for federal taxes. Regular military pay uses your normal tax bracket rate. Both types of pay are subject to the same final tax rate on your tax return.

Will I get my military bonus tax money back?

You may get some bonus tax money back when filing your tax return. The 22% withholding rate might be higher than your actual tax bracket. If you paid too much tax, you receive a refund. If you paid too little, you owe more money.

How do I calculate taxes on my military enlistment bonus?

Use a military bonus tax calculator to estimate your net bonus amount. Multiply your bonus by 22% for federal taxes. Add 7.65% for Social Security and Medicare taxes. Subtract both amounts from your total bonus to find your take-home pay.

Do military reenlistment bonuses count as income?

Yes, military reenlistment bonuses count as taxable income for the year received. The IRS treats bonus payments the same as regular wages. You must report the full bonus amount on your tax return. Combat pay exclusions do not apply to most bonus payments.

What is the military bonus tax rate for 2025?

The military bonus tax rate is 22% for federal income tax withholding in 2025. This rate applies to bonuses under $1 million dollars. Bonuses over $1 million face a 37% withholding rate. These are withholding rates, not your final tax rate.

How are military signing bonuses paid and taxed?

Military signing bonuses are often paid in installments over several years. Each payment gets taxed in the year you receive it. The military withholds 22% federal tax from each bonus payment. You pay taxes on the bonus amount in your current tax bracket.

Can I reduce taxes on my military bonus?

You cannot avoid paying taxes on military bonus income completely. However, you can increase 401(k) or TSP contributions to lower taxable income. Combat pay exclusions may apply to some special pay bonuses. Consult a military tax professional for specific strategies.

Do state taxes apply to military bonuses?

State tax rules for military bonuses vary by state and military member status. Some states do not tax military pay at all. Others tax bonuses the same as regular income. Your state of legal residence determines which tax rules apply.

What happens if my military bonus puts me in a higher tax bracket?

Moving to a higher tax bracket only affects income above the bracket threshold. The tax system uses marginal rates, not flat rates on total income. Your bonus might push some income into the next bracket. Only that excess amount gets taxed at the higher rate.

How do I report military bonuses on my tax return?

Military bonuses appear on your W-2 form in Box 1 as wages. Include the full bonus amount when filing your tax return. The withholding amount shows in Box 2 for federal taxes withheld. Use standard tax forms like 1040 to report bonus income.

Are military special duty assignment bonuses taxable?

Most military special duty assignment bonuses are fully taxable income. These include hazardous duty pay, flight pay, and submarine duty bonuses. Combat pay exclusions may apply in designated combat zones. Check with military finance for specific bonus tax treatment.