How a bonus is calculated
There are two everyday ways a bonus is set. A percentage bonus is your base salary times a rate — a 10% bonus on a $60,000 salary is $6,000. A flat bonus is just a dollar figure your employer decides, like a $2,500 holiday bonus, with no link to your salary. The calculator above handles both: pick the type, enter the number, and it shows the gross bonus along with an after-tax estimate.
If you didn't work the whole year, many bonus plans prorate the amount — paying you the share that matches the months you were employed. Set "Months worked" to anything below 12 and the tool scales the bonus down accordingly, so a $6,000 full-year bonus becomes $3,000 if you were there for six months.
A percentage bonus at common salaries
Gross bonus, before tax:
| Salary | 5% | 10% | 15% |
|---|---|---|---|
| $40,000 | $2,000 | $4,000 | $6,000 |
| $60,000 | $3,000 | $6,000 | $9,000 |
| $80,000 | $4,000 | $8,000 | $12,000 |
| $100,000 | $5,000 | $10,000 | $15,000 |
Why your bonus looks so heavily taxed
This is the question almost everyone asks when a bonus hits their account smaller than expected. The reason is that the IRS treats bonuses as supplemental wages, and the standard way employers handle them is to withhold federal income tax at a flat 22% rather than running them through your normal payroll tables. On top of that come Social Security and Medicare (7.65% combined) and any state income tax. Add it up and a chunk of the bonus disappears before you see it.
The important part: that 22% is withholding, not your final tax. It's an estimate the payroll system makes up front. When you file your return, the bonus is taxed at your actual rate along with the rest of your income — so if too much was withheld, the excess comes back as part of your refund. The calculator shows the up-front take-home so you know what to expect in the deposit, not the final settled tax.
Gross, withholding and take-home
The results table breaks the bonus into four lines: the gross amount, the estimated federal supplemental withholding, the Social Security and Medicare (FICA) portion, and the estimated take-home. If you know your state's rate you can enter it to fold state tax in too. It's a solid back-of-envelope figure — enough to plan around — but your real paycheck depends on your employer's exact method and your full tax picture, so treat it as an estimate rather than a guarantee.
Frequently asked questions
How is a bonus calculated?
A percentage bonus is salary × rate (10% of $60,000 is $6,000); a flat bonus is a set dollar figure. Part-year bonuses are often prorated by months worked.
Why is my bonus taxed so much?
Bonuses are supplemental wages, usually withheld at a flat 22% federal rate plus 7.65% FICA and any state tax. It's withholding, not final tax — over-withholding returns at filing.
How much will my bonus be after taxes?
Roughly subtract 22% federal and 7.65% FICA, then state tax. A $6,000 bonus nets about $4,221 before state tax.
What is the bonus tax rate?
The flat supplemental withholding rate is 22% for most bonuses (37% above $1 million a year). That's the withholding rate, not necessarily your final tax rate.
How do I calculate a percentage bonus?
Multiply base salary by the percentage. 5% of $80,000 is $4,000.
What is a prorated bonus?
A bonus reduced for the part of the year you worked. A $6,000 full bonus becomes $3,000 if you were employed six months.
Is a bonus taxed differently than my salary?
It's usually withheld differently (flat 22%) but it's still ordinary income, taxed at your real rate when you file.
How much is a 10% bonus on $60,000?
$6,000 gross; about $4,221 take-home after federal withholding and FICA, before state tax.