How this California bonus tax calculator works
Your employer does not tax a bonus at a special "bonus rate." It withholds tax from the bonus using one of two methods, and the result is what you see on your pay stub. This calculator shows that withholding, so you know what to expect before payday.
Step 1: Enter your bonus and how it is paid
Type the bonus amount. Then choose Separate bonus check if the bonus is paid on its own or shown on its own line. Choose Added to regular paycheck if it is combined with your normal pay.
Step 2: Choose the California bonus type
California has two flat rates. Pick Bonus or stock options for 10.23%. Pick Other pay, like commission for 6.6%. This choice only matters for the flat-rate method.
Step 3: Add your salary and filing status
Your yearly salary is used for the Social Security limit, for the aggregate method, and for the tax-time estimate. Your filing status sets the federal and California tax tables.
Step 4: Read what you keep
The result shows your take-home amount, a split of every tax, and a quick check of how your withholding compares with the federal tax you will likely owe when you file.
How much is a bonus taxed in California?
With the flat-rate method, a California bonus loses about 41.18% to withholding. This is where the money goes on a $10,000 bonus.
| Tax | Rate | Amount |
|---|---|---|
| Federal income tax | 22% | $2,200 |
| California income tax (bonus rate) | 10.23% | $1,023 |
| Social Security | 6.2% | $620 |
| Medicare | 1.45% | $145 |
| California SDI | 1.3% | $130 |
| Total withheld | 41.18% | $4,118 |
| You keep | 58.8% | $5,882 |
These percentages are withholding. They are not your final tax. Your real tax is figured when you file your return, and it can be lower or higher than what was withheld.
Federal bonus tax: flat rate or aggregate method
The IRS allows two ways to withhold federal income tax from a bonus.
The flat-rate method
If the bonus is paid separately, or is clearly shown on its own, your employer can withhold a flat 22%. If you receive more than $1 million in supplemental pay in one year, the part above $1 million is withheld at 37%. The flat rate does not depend on what you wrote on your Form W-4.
The aggregate method
If the bonus is paid together with your regular pay, your employer adds the two amounts, works out the withholding as if the total were one regular paycheck, and then subtracts the tax that would have been withheld on your regular pay alone. Because the total is treated like one very large paycheck, the withholding can be much higher than 22%.
California bonus tax rate: 10.23% or 6.6%
California law lets employers withhold at flat rates instead of using the regular withholding tables. The flat rate is 10.23% for bonuses and stock options, and 6.6% for other supplemental wages, such as commissions. Employers can also combine the bonus with regular pay and use the California Employment Development Department (EDD) withholding tables. That is the aggregate method.
California has no city or county income tax, so there is no local tax to add. To see your regular paychecks, use the California Paycheck Calculator.
Social Security, Medicare, and SDI on a bonus
These payroll taxes apply to a bonus the same way they apply to regular pay.
- Social Security: 6.2% until your yearly wages reach the 2026 limit of $184,500. After that, the bonus has no Social Security tax.
- Medicare: 1.45% on all wages. Employers also withhold an extra 0.9% on wages above $200,000 in a year.
- California SDI: 1.3% on all wages in 2026, with no yearly limit.
Pre-tax 401(k) savings lower your income tax withholding, but they do not lower Social Security, Medicare, or SDI.
Flat rate or aggregate: which method will my employer use?
The choice is up to your employer. Many employers use the flat rate when the bonus comes on a separate check. Others add it to your regular pay. Ask your payroll team before payday if you want to know. The table compares both methods for a $10,000 bonus.
| Annual salary | Federal tax (flat) | Federal tax (aggregate) | California tax (flat) | California tax (aggregate) | You keep (flat) | You keep (aggregate) |
|---|---|---|---|---|---|---|
| $40,000 | $2,200 | $2,520 | $1,023 | $976 | $5,882 | $5,609 |
| $75,000 | $2,200 | $2,797 | $1,023 | $1,021 | $5,882 | $5,287 |
| $120,000 | $2,200 | $3,022 | $1,023 | $1,024 | $5,882 | $5,059 |
| $200,000 | $2,200 | $3,362 | $1,023 | $1,062 | $6,412 | $5,212 |
At a $200,000 salary, Social Security has already reached its limit, which is why the take-home amount is higher in the flat column. Both methods only change withholding. Your final tax is figured when you file.
California bonus after-tax examples
These examples use the flat-rate method, a single filer, and a $75,000 salary. Enter your own numbers in the calculator for a personal result.
| Bonus | Federal (22%) | California (10.23%) | Social Security, Medicare and SDI | You keep | Share kept |
|---|---|---|---|---|---|
| $1,000 | $220 | $102 | $90 | $588 | 58.8% |
| $2,500 | $550 | $256 | $224 | $1,471 | 58.8% |
| $5,000 | $1,100 | $512 | $448 | $2,941 | 58.8% |
| $10,000 | $2,200 | $1,023 | $895 | $5,882 | 58.8% |
| $25,000 | $5,500 | $2,558 | $2,238 | $14,705 | 58.8% |
| $50,000 | $11,000 | $5,115 | $4,475 | $29,410 | 58.8% |
| $100,000 | $22,000 | $10,230 | $8,950 | $58,820 | 58.8% |
Will I owe more tax on my bonus when I file?
In the end, a bonus is not taxed at a higher rate. It is added to your income for the year and taxed at your normal rates. Withholding is only a down payment. If too much was withheld, you get it back as a refund. If too little was withheld, you owe the difference.
For a quick check, the calculator estimates the federal tax on your bonus using the tax bracket where the bonus lands. If the bonus lands in the 12% bracket, the 22% flat rate is too high, and you will likely get money back. If it lands in the 24% bracket or higher, the 22% flat rate is too low, and you may owe a little. This check covers federal tax only. Your California tax is settled on your California return, and the rate depends on your total income.
California bonus vs Texas and Florida
Texas and Florida have no state income tax and no state disability tax. That means more of a bonus stays in your pocket. This table compares the take-home amount using the flat-rate method and the same $75,000 salary.
| Bonus | You keep in California | You keep in Texas or Florida | Difference |
|---|---|---|---|
| $5,000 | $2,941 | $3,518 | $577 |
| $10,000 | $5,882 | $7,035 | $1,153 |
| $25,000 | $14,705 | $17,588 | $2,883 |
Want to see regular pay in those states? Try the Texas Paycheck Calculator or the Florida Paycheck Calculator. We also have calculators for New York City, North Carolina, Georgia, Virginia, and Illinois.
How to keep more of your bonus
- Save part of it in your 401(k). This lowers your federal and California income tax withholding on that part. Social Security, Medicare, and SDI still apply.
- Ask how the bonus will be paid. The aggregate method can withhold more up front. You get the extra back later if too much was withheld, but it changes your cash flow.
- Know what your W-4 can and cannot do. Changing your W-4 will not change the flat 22% rate on a separate bonus. It does change your regular paychecks.
- Plan for tax time. If your bonus lands in a higher bracket, you may owe more. You can raise withholding on your regular pay or make an estimated payment.
- Check your regular pay too. If you are paid by the hour, the Hourly to Salary Calculator and the Overtime Pay Calculator can help you see your full yearly income.
Bonus tax terms explained
- Supplemental wages
- Pay on top of your regular wages, such as bonuses, commissions, and severance.
- Flat-rate (percentage) method
- A method that withholds a fixed percentage from the bonus.
- Aggregate method
- A method that adds the bonus to regular pay and withholds as if the total were one paycheck.
- Withholding
- The tax your employer takes from your pay and sends to the government for you.
- Marginal tax rate
- The tax rate on the last dollars of your income. A bonus is taxed at your marginal rate when you file.
- FICA
- The federal payroll taxes for Social Security and Medicare.
- State Disability Insurance (SDI)
- A California payroll tax, paid by employees, that funds disability and paid family leave benefits.
- Form DE 4
- The California form that tells your employer how much state income tax to withhold.
- Net bonus (take-home)
- The amount you receive after taxes and deductions.
