How is a bonus taxed, and how much do you actually keep?
Most employers withhold a flat 22% federal tax on bonuses (the supplemental rate), plus FICA and state tax. On a $5,000 bonus, expect to keep about $3,300–$3,600 depending on your state — the 22% is withholding, not your final tax rate.
Where a $5,000 bonus goes (no state tax, 2025)
| Deduction | Amount | Note |
|---|---|---|
| Federal supplemental withholding | −$1,100 | Flat 22% |
| Social Security (6.2%) | −$310 | If under wage base |
| Medicare (1.45%) | −$72.50 | Uncapped |
| Net bonus | $3,517.50 | ≈ 70% of gross |
How to read this table
- Net bonus sits at the top of the table ($3,517.50) — ≈ 70% of gross. If your situation looks like this row, plan against the upper half of the range rather than the midpoint.
- Medicare (1.45%) anchors the bottom (−$72.50) — uncapped. Treat this as the conservative case you should still be profitable at.
- The gap between the top and bottom row is roughly 49×. That spread is why a single blended average is close to useless here — pick the row that matches your setup instead of averaging the column.
- With 4 reference points in the "where a $5,000 bonus goes (no state tax, 2025)" table, the fastest way to use this page is to find the closest row, take its amount, then stress-test it ±30% before you build a plan on it.
Context
If your actual marginal bracket is 12%, the 22% withholding over-collects and you get the difference back at tax time; if you're in the 24%+ brackets, you may owe a little more. Bonuses over $1 million are withheld at 37%. Some employers instead lump the bonus into a regular check (aggregate method), which can withhold even more. Either way, the bonus is ordinary income on your W-2 — the 'bonus tax rate' is just a withholding convention.
What moves this number
Filing status and W-4 settings
Married filing jointly roughly doubles bracket widths and the standard deduction, so the same salary withholds very differently by status. Dependents, second jobs, and extra-withholding entries on the W-4 move every paycheck.
State and local taxes
Nine states levy no wage income tax while top marginal rates elsewhere exceed 10%, and cities like New York add their own layer. The same salary can differ by hundreds of dollars per month purely on location.
Pre-tax benefits
Traditional 401(k), HSA, and health premiums come out before income tax, shrinking both taxable income and the withholding on each check — a raise in contributions costs less take-home than the headline amount.
Methodology
IRS supplemental wage rules: flat 22% federal withholding for supplemental wages under $1 million when paid separately; FICA applies normally. State supplemental rates vary (0% in no-tax states, ~10.2% in California).
Assumptions and caveats
- Figures use current-year federal brackets and standard deductions; your actual withholding depends on your W-4 and state.
- Estimates exclude credits (Child Tax Credit, EITC), which can materially change the final number.
- This is educational arithmetic, not tax advice — confirm decisions with a tax professional.
- This page was last reviewed on 2026-10-01. Ranges are updated as new data lands, so re-check before using them in a contract or a plan.
- Use these numbers as a starting range, not a guarantee — your own historical data always beats a benchmark.
Frequently asked questions
How is a bonus taxed, and how much do you actually keep?
Most employers withhold a flat 22% federal tax on bonuses (the supplemental rate), plus FICA and state tax. On a $5,000 bonus, expect to keep about $3,300–$3,600 depending on your state — the 22% is withholding, not your final tax rate.
Which option pays the most in the where a $5,000 bonus goes (no state tax, 2025) table?
Net bonus, at $3,517.50 (≈ 70% of gross). That row represents the strongest case in this dataset, so use it as an upper bound rather than an expectation.
What is a realistic low-end figure?
Medicare (1.45%) at −$72.50 (Uncapped). Plan your costs so the low end still works, then treat anything above it as upside.
Why do the numbers vary so much?
The spread between the highest and lowest row is about 49×. Filing status and W-4 settings and state and local taxes explain most of that gap — see the drivers section above for the full list.
Where do these numbers come from?
IRS supplemental wage rules: flat 22% federal withholding for supplemental wages under $1 million when paid separately; FICA applies normally. State supplemental rates vary (0% in no-tax states, ~10.2% in California).
How can I estimate my own number instead of using a benchmark?
Use the Take-Home Pay Calculator on RevenueLab — it takes your own inputs and returns a figure specific to your setup, which is always more accurate than a published range.
Model your own numbers
Related reading
More answers in this category
- How do you calculate take-home pay?
- How do you calculate net pay from gross pay?
- What percentage of a paycheck goes to taxes?
- How do you calculate FICA taxes on a paycheck?
Looking for a calculator?
Search every free tool on RevenueLab — or describe your problem and Rex will pick one.
Last updated 2026-10-01.