Texas Bonus Tax Calculator
How much of your Texas bonus do you actually keep? Enter your bonus amount to see your net pay after the federal supplemental withholding rate — no state income tax in Texas.
How Bonuses Are Taxed in Texas
Bonuses and other supplemental wages are subject to federal income tax but not Texas state income tax (Texas has none). The IRS allows employers to withhold federal tax on bonuses using one of two methods: the flat 22% supplemental rate (for bonuses under $1 million) or the aggregate method (adding the bonus to your regular wages and withholding at your marginal bracket rate).
For example, a $5,000 bonus withheld at the flat 22% rate results in $1,100 federal tax withheld, plus $382.50 FICA — leaving you with approximately $3,517 net. If your employer uses the aggregate method and you are in the 22% bracket, the result is similar. If you are in the 12% bracket, the flat 22% method actually over-withholds — you may get a refund at tax time.
See our Texas salary calculator for your regular paycheck, or the Texas overtime calculator if you also worked extra hours this period.
Bonus Tax Strategy: Aggregate vs. Flat Rate
If your employer uses the flat 22% method and your actual marginal bracket is 12%, you will be over-withheld on your bonus and receive a refund when you file. If your bracket is 24% or higher, the flat 22% method actually under-withholds — you may owe additional tax at filing. The calculator above uses the flat 22% supplemental rate by default, which is the most common employer method.