How to use the calculator
- Enter your bonus amount in dollars
- Select your filing status for the tax year
- Enter the number of dependents you claim on your tax return
- Click the "Calculate" button to see your estimated tax and net bonus amount
Important notes
- This calculator provides a simplified estimate of bonus tax. It does not consider all tax factors such as standard deductions, tax credits, or state taxes.
- The tax rates used in this calculator are illustrative and may not reflect actual current tax rates. For accurate tax calculations, consult a tax professional or use IRS resources.
- For the 2023 tax year, the IRS offers a special rule allowing you to spread bonus income over 2 years to reduce the tax impact. This calculator does not account for this option.
- The calculator assumes your bonus income is subject to ordinary income tax rates.
Working principles
The calculator works by taking your gross bonus amount and determining a tax rate based on your filing status, dependents, and the amount of the bonus. The tax is then calculated by multiplying the taxable bonus by the determined tax rate.
For example, if you receive a $5,000 bonus as a single filer with one dependent, you might see an estimated tax calculation that shows you would owe approximately $500 in taxes (10% tax rate), leaving you with $4,500 net after taxes.