Arizona Bonus Tax Calculator
Bonuses paid separately from a regular paycheck are typically withheld differently than regular wages: a flat 22% federal rate (37% on amounts over $1,000,000 in a year), plus Arizona withholding, Social Security, and Medicare.
Uses the IRS supplemental-wage flat-rate method (22% federal, applies when a bonus is paid and identified separately from a regular paycheck) — not the same annualized method used for regular pay. See methodology.
Estimated net bonus
$3,418
- Gross bonus
- $5,000
- Federal withholding (22% flat)
- − $1,100
- Arizona withholding
- − $100
- Social Security
- − $310
- Medicare
- − $73
Why Bonuses Are Withheld Differently
The IRS treats bonuses, commissions, and other one-time payments as "supplemental wages." When a bonus is identified and paid separately from your regular paycheck, employers may withhold federal tax at a flat 22% rather than running it through your regular W-4 withholding calculation — which is why a bonus can look like it's taxed at a much higher rate than your paycheck, even though it isn't necessarily.
This flat rate is a withholding rate, not your final tax rate. The actual tax you owe on a bonus depends on your total annual income and is reconciled when you file your tax return — you may get some of that withholding back as a refund, or owe more, depending on your overall tax situation. Arizona doesn't have a separate supplemental rate; bonuses are withheld at your chosen Arizona A-4 percentage, same as regular wages.
Frequently Asked Questions
Why does my bonus get taxed more than my paycheck?+
It's not taxed at a higher rate overall — employers often withhold bonuses at a flat 22% federal rate (the IRS supplemental wage rate), which can be higher than your regular paycheck's withholding rate if you're in a lower bracket. Any over-withholding is reconciled when you file your tax return.
What is the supplemental wage tax rate?+
The IRS supplemental wage flat withholding rate is 22% federal for bonuses up to $1,000,000 in a year, and 37% on the amount above that threshold.
Does Arizona have a separate bonus tax rate?+
No — Arizona withholds bonuses at the same flat A-4 percentage you've elected for your regular wages; there's no separate Arizona supplemental rate.
Can my employer add my bonus to a regular paycheck instead?+
Yes — if a bonus isn't paid or identified separately, employers can combine it with a regular paycheck and withhold using the standard aggregate method instead of the flat supplemental rate, which may result in different withholding.
Tax year 2026 · Data reviewed 2026-08-15 · See methodology and sources. Estimates only — not tax or legal advice.