Bonus Tax Calculator
Updated on 22 Oct 2026 · Checked by Aotob
Of a $5,000 bonus on a $60,000 salary you keep $4,018.
$983 goes in tax and contributions, 19.7% of the bonus.
You keep
$4,018
Employers usually withhold a flat 22% federal tax on bonuses. Your real federal rate on it is about 12%, so the difference comes back (or is owed) at tax time.
Show the working
Take-home with the bonus 54,408 − without 50,390 = 4,018
Other bonus sizes
| Bonus | You keep | Rate |
|---|---|---|
| 1,250 | 1,004 | 20% |
| 2,500 | 2,009 | 20% |
| 5,000 | 4,018 | 20% |
| 10,000 | 7,685 | 23% |
| 20,000 | 14,720 | 26% |
Questions people ask
Are bonuses taxed more?
No. A bonus is taxed as income at your top rate. It can look over-taxed because payroll treats it as if you earned that much every period, and in the US employers often withhold a flat 22%.
Can I avoid tax on a bonus?
Paying it into a pension (salary or bonus sacrifice in the UK, a 401(k) in the US, super in Australia) defers or avoids the tax.
Why is my rate on the bonus higher than my average rate?
Because it sits on top of your salary, in your highest band, and in the UK can cut your personal allowance above £100,000.
Updated 22 Oct 2026Source: Each country’s 2026 tax rules, checked October 2026Checked by AotobDefault tax settings for each country (US: federal only).Report an issue