Year-End Bonus Tax Withholding Calculator
Only matters if your bonus plus this pushes you over the $1,000,000 threshold.
This is federal withholding — an estimate of what gets held back now, not your final tax bill. Your actual tax depends on your total annual income and marginal bracket, settled when you file.
Free year-end bonus tax withholding calculator built for employees, not payroll admins — enter your bonus amount to see the 22%/37% flat federal withholding split at the $1M threshold, with a clear reminder that withholding isn't your final tax bill.
How it works
- Enter your bonus amount and, if relevant, your year-to-date supplemental wages (to check the $1M threshold)
- See federal withholding calculated at the flat 22% rate (37% on any amount over $1M in a calendar year)
- See your estimated take-home from the bonus, with a permanent note that withholding is not your final tax liability
Frequently asked questions
Is the 22% withholding my actual tax rate on the bonus?
No. 22% (or 37% above $1M) is only the amount your employer withholds upfront using the IRS flat supplemental-wage rate. Your real tax liability depends on your total annual income and marginal tax bracket, and gets reconciled when you file your return -- you could get a refund or owe more.
Why is the rate 37% above $1 million?
IRS rules require a higher 37% flat withholding rate on the portion of supplemental wages (like bonuses) that exceeds $1 million paid by one employer in a calendar year. The One Big Beautiful Bill Act (P.L. 119-21, enacted July 2025) permanently extended the individual tax rates that keep this 22%/37% flat-rate structure in place for 2026.
Does this replace a payroll calculator?
No -- this is a quick estimate for employees checking what to expect, not a payroll-processing tool. It doesn't handle state withholding, FICA/Medicare, YTD deduction tracking, or other employer-side payroll fields.
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Update history
- 2026-09-28 Launched: individual-employee-focused bonus withholding calculator — 22%/37% flat rate split shown at the $1M threshold, with an always-visible note that withholding is not final tax liability.