Wisconsin Bonus Tax Calculator 2025
Step 1: Enter your bonus amount in the first field.
Step 2: Input your annual gross income to determine the correct tax bracket.
Step 3: Select your filing status (single, married filing jointly, etc.).
Step 4: Enter your regular pay period wages if using the aggregate method.
Step 5: Choose your pay frequency (bi-weekly, weekly, etc.).
Step 6: Select the calculation method - use "Percentage Method" for bonuses paid separately from regular wages, or "Aggregate Method" for bonuses combined with regular pay.
Results: The calculator will show your Wisconsin state tax, federal tax, FICA taxes, total deductions, and net take-home bonus amount in real-time.
Wisconsin Bonus Tax Rates and Withholding Methods in 2025
Wisconsin supplemental wage taxation follows specific IRS guidelines while incorporating state-specific withholding requirements. For tax year 2025, Wisconsin treats bonus payments as supplemental income subject to both federal and state payroll taxes.
Wisconsin State Bonus Tax Calculation Methods
Wisconsin employers can choose between two supplemental wage withholding methods for bonus taxation:
- Method 1: Aggregate Withholding Method: Combine the bonus with regular wages, then apply Wisconsin's standard withholding tables to the total compensation to calculate the tax on the combined gross amount.
- Method 2: Flat Rate Supplemental Withholding: Use a flat percentage based on the employee's annual income.
| Annual Income Threshold | Wisconsin Flat Rate | Employee Tax Bracket |
|---|---|---|
| Under $12,760 | 3.54% | Lowest income tier |
| $12,760 - $25,519 | 4.65% | Lower-middle income |
| $25,520 - $280,949 | 5.30% | Middle to upper-middle |
| $280,950+ | 7.65% | High-income earners |
Federal Bonus Tax Withholding Requirements
Federal supplemental wage rates for 2025 bonus payments include:
- 22% withholding rate on bonuses up to $1,000,000.
- 37% withholding rate on bonus amounts exceeding $1,000,000.
- FICA tax obligations: 7.65% total (6.2% Social Security + 1.45% Medicare).
- Additional Medicare Tax: 0.9% on wages over $200,000 (for individual filers).
For detailed information, refer to the IRS Publication 15, Employer's Tax Guide, which outlines comprehensive withholding procedures.
Bonus Tax Calculation Example
Scenario: A Wisconsin employee earning $75,000 annually receives a $10,000 year-end bonus.
Wisconsin State Tax Withholding:
- Applicable rate: 5.30% (based on the $25,520 - $280,949 income bracket)
- State tax withheld: $10,000 × 5.30% = $530
Federal Tax Withholding:
- Federal income tax: $10,000 × 22% = $2,200
- Social Security tax: $10,000 × 6.2% = $620
- Medicare tax: $10,000 × 1.45% = $145
- Total federal withholding: $2,965
Combined Tax Withholding: $530 (State) + $2,965 (Federal) = $3,495 (a 34.95% effective rate).
Wisconsin Payroll Tax Structure and Withholding Tables
2025 Wisconsin Income Tax Brackets for Payroll
Wisconsin's progressive tax system applies the following marginal tax rates for payroll withholding:
| Taxable Income Range | Marginal Rate | Calculation |
|---|---|---|
| $0 - $12,760 | 3.54% | 3.54% of taxable income |
| $12,760 - $25,520 | 4.65% | $451.70 + 4.65% over $12,760 |
| $25,520 - $280,950 | 5.30% | $1,045.04 + 5.30% over $25,520 |
| $280,950+ | 7.65% | $14,582.83 + 7.65% over $280,950 |
For the most current information, consult the Wisconsin Department of Revenue's official withholding tax tables.
Wisconsin Payroll Tax Components
- State-Level Deductions: Wisconsin income tax withholding (variable rates). There is no state disability insurance (SDI) or paid family medical leave (PFML). State unemployment insurance is employer-paid only.
- Federal Payroll Taxes: Federal income tax, Social Security (6.2% on wages up to $176,100 for 2025), and Medicare (1.45% on all wages, plus an additional 0.9% for high earners).
Your take-home pay is affected by filing status, W-4 elections, and pre-tax deductions (401k, health insurance, HSA) or post-tax deductions (Roth 401k, life insurance).
Tax Planning Strategies for Wisconsin Bonus Recipients
Wisconsin residents face a moderate state tax burden, with combined federal and state marginal rates reaching up to 44.65%. Fortunately, there are ways to optimize your bonus.
- Timing Strategies: If possible, defer bonus payments to manage tax brackets across different years.
- Maximize Pre-Tax Contributions: Contribute a portion of your bonus directly to your 401(k), HSA, or other pre-tax accounts to lower your immediate taxable income.
- Withholding Adjustments: File an updated Form W-4 to adjust your regular payroll withholding to account for a large bonus, preventing a surprise tax bill or a large refund.
- Estimated Tax Payments: If you expect a bonus to create an underpayment risk, consider making estimated tax payments.
For comprehensive planning, consider resources from the Wisconsin Institute of Certified Public Accountants (WICPA).
Frequently Asked Questions
How are bonuses taxed in Wisconsin?
Wisconsin treats bonuses as supplemental income. Employers can either use the "aggregate method" (combining the bonus with regular pay and using standard withholding tables) or a flat withholding rate that varies from 3.54% to 7.65% depending on your annual income.
What federal taxes are taken from a Wisconsin bonus?
Your bonus is subject to a 22% federal withholding rate for supplemental income under $1 million. Additionally, a 7.65% FICA tax is withheld for Social Security (6.2%) and Medicare (1.45%).
What is the flat tax rate for bonus withholding in Wisconsin?
Wisconsin uses a tiered flat rate system for supplemental pay. The rate is 3.54% for incomes under $12,760, 4.65% for incomes between $12,760-$25,519, 5.30% for incomes between $25,520-$280,949, and 7.65% for incomes over $280,950.
Can I lower the taxes on my Wisconsin bonus?
Yes. You can lower the taxable amount of your bonus by increasing pre-tax contributions to accounts like a 401(k) or Health Savings Account (HSA). You can also adjust your Form W-4 to change your overall withholding for the year, but this does not change your final tax liability.
Does Wisconsin have city or local taxes on bonuses?
No, most municipalities in Wisconsin do not impose local income taxes on bonuses or regular wages.
What is the total tax on a $10,000 bonus in Wisconsin for a mid-range earner?
The total estimated tax is approximately $3,495, or 34.95%. This includes a 5.30% state tax ($530), 22% federal tax ($2,200), and 7.65% FICA tax ($765).