Bonus

Bonus calculator

Two different questions get mixed together. What tax does the bonus create, and what will the employer withhold on the check?

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Aggregate versus 22%

The aggregate method adds the bonus to the year and subtracts the tax on salary alone. That is the difference in the annual bill under this estimate. Many employers instead withhold federal tax on supplemental wages at a flat 22%. That is a withholding convention, not a special tax bracket. If you are already in the 22% federal bracket, the two federal numbers often match. State and local tax still follow the aggregate difference here.

Questions

Is a bonus taxed at 40%?

Not as a special rate. Withholding can look heavy because it is a lump sum on top of wages that have already used the standard deduction. The return uses the same brackets as the rest of your income.

Sponsored

Reserved placement

This slot stays under the estimate. It is not a recommendation, and the paycheck above does not depend on it. No offer is sold here yet.

Partner

Reserved placement

A partner card would be labeled like this and would not sit between the salary field and the net number. There is no email gate.

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