1. What is the Bonus Calculator?

This calculator helps California employees determine their net bonus after federal and state tax withholdings. Bonuses are typically taxed at a higher rate than regular wages.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Bonus — The pre-tax bonus amount
• 22% — Federal supplemental withholding rate for bonuses
• 10.23% — California state tax rate on bonuses

Note: These are withholding rates - your actual tax liability may differ when you file your annual return.

3. Understanding Bonus Taxation

Details: In California, bonuses are considered supplemental wages and are subject to:

• 22% federal flat rate (for amounts under $1 million)
• 10.23% California state income tax
• Additional Medicare tax may apply for high earners

4. Using the Calculator

Tips: Enter your gross bonus amount (before any taxes). The calculator will show the estimated taxes withheld and your net take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: Why are bonuses taxed higher?
A: Bonuses are considered supplemental income and are subject to different withholding rules than regular wages.

Q2: Will I get some taxes back?
A: Possibly. These are withholding rates. Your actual tax liability is calculated when you file your return.

Q3: Are all bonuses taxed the same?
A: For amounts under $1 million, yes. Bonuses over $1 million are subject to a 37% federal rate.

Q4: Does this include Social Security and Medicare?
A: No, this calculator only shows income tax withholding. FICA taxes (7.65%) also apply.

Q5: Are California bonus taxes higher than other states?
A: Yes, California has one of the highest state income tax rates in the nation.