Career & HR
Salary, tax & workplace calculators
Bonus Tax Calculator
See what's left of a bonus after tax — US (percentage vs aggregate) and India. Accurate, instant and free — for US · India.
What these mean:
What these mean:
What these mean:
Percentage method: withhold $2,965 (29.6%) → net $7,035. Remember: withholding is not final tax — you settle the difference on your annual return.
Withholding is not final tax — you reconcile the actual amount on your annual return. Over-withholding = refund; under-withholding = owe.
How US bonus withholding is calculated
The IRS classifies bonuses as supplemental wages — a catch-all for payments separate from regular pay. Employers choose between two withholding methods: the flat-rate percentage method and the payroll-rate aggregate method. Either way, (Social Security + Medicare) is withheld on the bonus at the marginal rate, and state supplemental withholding adds on top.
Percentage method
Flat 22% federal (37% over $1M)
Example: $10k bonus, $0 prior supplemental YTD → $10,000 × 22% = $2,200 federal.
The percentage method is the most common. Your employer withholds a fixed 22% federal rate regardless of your bracket — fast and simple, but it may over- or under-withhold compared to what you'll actually owe.
Aggregate method
Marginal income tax on the bonus
Captures which bracket the bonus falls in — more accurate than 22% when your rate differs.
The aggregate method adds the bonus to your regular pay and applies the combined withholding rate. For earners in the 10%–12% bracket it withholds less than 22%; for those in the 32%–37% bracket it withholds more. The side-by-side visual above shows how the two methods compare on your inputs.
FICA on the bonus
Marginal SS + Medicare
SS 6.2% up to $184,500 (2026 wage base); Medicare 1.45% uncapped; +0.9% additional Medicare above $200,000 (single). FICA applies to both methods.
Because Social Security has a wage cap, if your regular wages already exceeded $184,500, no SS is withheld from the bonus. The calculator computes this marginal FICA correctly.
State supplemental + CA SDI
CA 10.23%, NY 11.7%, TX $0
CA: state 10.23% + SDI 1.3% = 11.53% extra. NY: state 11.7%. TX/FL/WA: $0 state.
California and New York both publish separate supplemental wage rates. California also withholds 1.3% for State Disability Insurance (SDI) on the bonus. Other states are noted as "not modeled" rather than silently showing $0.
Withholding ≠ final tax
How India bonus TDS is calculated
India has no special rate for bonuses. A bonus is ordinary salary income withheld under Section 192 at the marginal slab rate. The engine computes the delta: tax on (salary + bonus) minus tax on salary alone — so , , and marginal relief are all applied automatically.
Marginal-slab delta method
Tax difference on the bonus
Example: ₹1L bonus on ₹15L salary (new regime, 15% slab) → ₹1,00,000 × 15% × 1.04 cess = ₹15,600 TDS.
§87A cliff + marginal relief
The ₹12L zero-tax zone
A ₹50,000 bonus on a ₹12.5L salary crossing the ₹12L line → marginal relief kicks in; extra TDS ≈ ₹26,000 (not the full slab rate × ₹1.25M).
The calculator flags the §87A cliff when your marginal rate on the bonus exceeds 30% — a signal that the rebate has been lost. Marginal relief then caps the extra tax at the portion of income above ₹12L, so the effective cost is always bounded.
Frequently asked questions
In the US a bonus is a "supplemental wage." Employers usually withhold federal income tax at a flat 22% (37% on the part of supplemental pay above $1,000,000 in a year), then add Social Security, Medicare, and state withholding on top — which is why the total can feel like 30–40%. This is withholding, not your final tax: you settle the real amount on your annual return.
The percentage method withholds a flat 22% on the bonus. The aggregate method adds the bonus to your regular paycheck and withholds at your normal payroll rate — so it can be more or less than 22% depending on your bracket. The calculator shows both side-by-side.
No — a bonus is ordinary income taxed at your normal rates. Only the withholding is calculated differently. If too much was withheld you get it back as a refund; if too little, you owe the difference at filing.
India has no special bonus rate: a bonus is fully taxable salary income, taxed at your marginal slab via TDS under Section 192. A bonus that pushes your taxable income over ₹12,00,000 (new regime) can cost the entire §87A rebate — softened by marginal relief, which caps the extra tax at the income above the ₹12L line.
It can. Under the new regime, taxable income up to ₹12,00,000 pays zero tax thanks to the §87A rebate. A bonus that lifts you just over ₹12L removes the rebate — but marginal relief limits the extra tax to roughly the amount you went over, so the result is steep but not punitive.
Method, assumptions & references
Methodology: US percentage method uses the IRS supplemental rate (22% base, 37% over $1M cumulative supplemental wages). US aggregate method computes the marginal income tax on the bonus via the full bracket waterfall. FICA is computed as the delta on YTD wages (capturing the SS wage base cap). State supplemental rates are modeled for CA (10.23%) and NY (11.7%); CA SDI at 1.3%; other states note "not modeled." India uses the delta method on the full slab computation (new or old regime), so §87A rebate, marginal relief, surcharge, and 4% cess are all inherited from the engine.
Estimates based on your inputs
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