Receiving a bonus is a great feeling, but the amount that actually lands in your bank account can be significantly less than the advertised gross amount due to various taxes. This calculator helps you estimate your take-home bonus by factoring in common deductions like federal income tax, state income tax, local income tax, and FICA taxes (Social Security and Medicare).
How the Calculation Works
The calculation for your net bonus involves subtracting all applicable taxes from the gross bonus amount. Here's a breakdown of the components:
Gross Bonus Amount: This is the total bonus amount before any deductions.
Federal Income Tax: This is a percentage of your bonus that goes to the federal government. The rate can vary based on your overall income bracket. For simplicity, this calculator uses a single rate you provide.
State Income Tax: Many states also levy an income tax on earnings, including bonuses. The rate varies significantly by state.
Local Income Tax: Some cities or municipalities impose their own income taxes.
FICA Taxes: This covers Social Security (6.2% up to an annual wage limit) and Medicare (1.45% with no wage limit). The combined rate is typically 7.65%. Note that bonuses are generally subject to FICA taxes.
The formula used is:
Total Tax Rate = Federal Tax Rate + State Tax Rate + Local Tax Rate + FICA Tax Rate
Net Bonus Amount = Gross Bonus Amount - Total Tax Amount
Why Use This Calculator?
This calculator provides a realistic estimate of your net bonus, helping you with personal financial planning. Knowing the approximate net amount allows you to budget more effectively for any planned expenses or savings goals. It's important to remember that this is an estimate, as your actual tax liability can be influenced by many factors, including your total annual income, filing status, and any specific tax credits or deductions you may be eligible for. For precise figures, consult a tax professional.
function calculateNetBonus() {
var grossBonus = parseFloat(document.getElementById("grossBonus").value);
var federalTaxRate = parseFloat(document.getElementById("federalTaxRate").value);
var stateTaxRate = parseFloat(document.getElementById("stateTaxRate").value);
var localTaxRate = parseFloat(document.getElementById("localTaxRate").value);
var ficaTaxRate = parseFloat(document.getElementById("ficaTaxRate").value);
var resultValueElement = document.getElementById("result-value");
if (isNaN(grossBonus) || grossBonus < 0) {
resultValueElement.textContent = "Invalid Bonus Amount";
return;
}
if (isNaN(federalTaxRate) || federalTaxRate < 0) {
federalTaxRate = 0;
}
if (isNaN(stateTaxRate) || stateTaxRate < 0) {
stateTaxRate = 0;
}
if (isNaN(localTaxRate) || localTaxRate < 0) {
localTaxRate = 0;
}
if (isNaN(ficaTaxRate) || ficaTaxRate < 0) {
ficaTaxRate = 0;
}
var totalTaxRate = federalTaxRate + stateTaxRate + localTaxRate + ficaTaxRate;
var totalTaxAmount = grossBonus * (totalTaxRate / 100);
var netBonus = grossBonus – totalTaxAmount;
if (netBonus < 0) {
netBonus = 0; // Ensure net bonus is not negative
}
resultValueElement.textContent = "$" + netBonus.toFixed(2);
}