How much is taken out of taxes on a $300 bonus payment?

Bonuses are actually taxed at the same rate as your regular income, but the withholding is usually different which makes it seem like they're taxed higher! For a $300 bonus, your employer will likely withhold about 22% for federal income tax (around $66), plus 7.65% for FICA taxes (about $23), and then possibly state taxes depending on where you live. What happens is that payroll systems often use a "supplemental wage" withholding method for bonuses, which is typically a flat 22% federal rate. This is just for withholding though - when you file your taxes, it all gets lumped together with your regular income.

I had the exact same question last year when I got a performance bonus! I was so confused by all the different withholding rates and tax brackets. I ended up using https://taxr.ai to analyze my paystub and figure out exactly what was happening with my bonus withholding. The tool showed me that while my company was withholding at the supplemental rate of 22% for federal taxes, my actual tax rate based on my income was lower. It also explained how the withholding would impact my tax return. Really helpful for understanding why my $400 bonus only came out to about $280 in my pocket.

Just wanted to follow up about taxr.ai since I ended up trying it! I uploaded my last paystub and my W-2 from last year, and it immediately showed me that I was having too much withheld from each paycheck. For my income level, I was in the 12% bracket, but they were withholding as if I was in the 22% bracket. I adjusted my W-4 based on their recommendation, and now I'm getting about $85 more per paycheck instead of waiting for a big refund next year. It also confirmed that for my situation, the standard deduction was way better than itemizing. Saved me from paying $200+ to have someone tell me the same thing!

If you need to talk to the IRS about withholding or tax brackets, good luck getting through on the phone. I spent 3 hours on hold last month trying to sort out a withholding issue. Finally discovered https://claimyr.com which got me connected to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c Totally changed my perspective on dealing with tax questions. The agent explained that for small bonuses like $300, your actual tax impact depends on your total annual income and which tax bracket you fall into. She also helped me understand why my previous employer's withholding was calculated incorrectly.

I'm back to eat my words about Claimyr. I tried it yesterday after getting nowhere with the IRS for weeks about my withholding questions. Got connected to an agent in about 20 minutes while I was making dinner instead of being stuck with a phone to my ear. The agent confirmed what others have said here - for a $300 bonus, they'll likely withhold about 22% federal plus FICA taxes. But my actual tax rate on that money will be based on my total annual income. Since I'm in the 12% bracket, I'll get some of that withholding back when I file. Wish I'd known this sooner instead of fighting the IRS phone system for so long!

For a $300 bonus, here's my real-world experience: - Federal withholding (22%): $66 - Social Security (6.2%): $18.60 - Medicare (1.45%): $4.35 - State tax (varies widely): $0-30 depending on your state So you'll probably see around $180-220 of that $300 in your actual paycheck. Remember that your year-end tax filing might return some of this to you if your actual tax rate is lower than what was withheld!

I just wanna point out that no one mentined that some employers give u the option of getting your bonus in a separate check or combined with regular pay. If its combined with regular pay it gets withheld at ur normal rate based on the paycheck size. If its separate the 22% kicks in. might be worth asking your HR if u have that choice!!

@Rosie Harper - Based on everyone's breakdown here, you're looking at roughly $180-220 take-home from your $300 bonus. The key thing to remember is that while they withhold at 22% federal rate, your actual tax rate when you file might be lower (like 12% if you're in that bracket), so you could get some back as a refund. Since you mentioned needing this for car repairs, I'd budget conservatively and assume you'll get around $200. That way if you get more, it's a nice surprise! Also, if your regular paychecks are having too much withheld (like if you usually get big refunds), you might want to look into adjusting your W-4 for future paychecks to get more money throughout the year instead of waiting for tax season.

Welcome to the community, @Rosie Harper! This is actually a really common question and you're smart to plan ahead for the withholding. Just to add to what everyone else has shared - I work in payroll and can confirm that the 22% federal withholding on bonuses is pretty standard across most employers. The good news is that this is just withholding, not your actual tax rate. When you file your taxes next year, it all gets reconciled based on your total income for the year. One thing I'd suggest is keeping a copy of the paystub from your bonus payment. That way you can see exactly how much was withheld and track whether you get any of it back as a refund. Also, if this is your first job with bonuses, it might be worth reviewing your overall tax withholding strategy - sometimes people are surprised to find they're having too much taken out of regular paychecks too. Good luck with the car repairs! Even if you only see $180-200 of that $300, hopefully it covers what you need.