California Bonus Tax Calculator:
Employers' Trusted Tool for Accurate Bonus Payments
The California bonus tax calculator available on this page helps employers quickly estimate the net pay (or take-home pay) an employee may receive from bonus payments.
Does Arkansas Tax Bonuses?
Yes. California considers bonuses to be taxable wages and requires state income tax withholding on bonus and other supplemental wage payments.
When bonuses are paid separately from regular wages, California commonly allows withholding using a flat 10.23% state rate for bonuses and stock options. You can use the calculator above, powered by Beyond, to estimate California withholding and take-home pay for bonus payments.
How to Calculate Bonus Tax in California
Supplemental wages—including bonuses, commissions, overtime pay, back pay, and certain additional wage payments—are generally treated as wages for withholding purposes.
If supplemental wages are processed:
– Paid separately from regular wages: employers may apply the California flat 10.23% bonus withholding rate
– Combined with regular wages: withholding may be calculated using the applicable payroll withholding method
For federal withholding:
– 22% applies to most supplemental wages
– 37% applies to supplemental wages above $1 million in a calendar year
Key Information on California Bonuses
How Are Bonuses Paid in California?
Employers may issue bonuses through:
– Check
– Direct deposit
– Pay card
How Do Bonuses Work?
Bonuses are treated as taxable compensation. They are generally subject to:
– Federal income tax withholding
– California state income tax withholding
– Social Security tax
– Medicare tax
– California SDI withholding
They are reported on the employee’s Form W-2 at the end of the year. California’s SDI withholding rate for 2026 is 1.3%, and there is no SDI taxable wage limit.
What Is the California Bonus Tax Rate?
For separately paid bonuses, California commonly applies a flat 10.23% withholding rate.
The calculator on this page uses this 10.23% California bonus withholding rate and also includes California SDI at 1.3%.
Are Bonuses Taxed Differently Than Standard Pay?
Yes, they can be. At the state level, separately paid bonuses may use California’s flat 10.23% withholding method instead of regular wage withholding calculations. At the federal level, bonuses may also be taxed using the supplemental wage method (22%) when paid separately from regular wages.
How Much Tax Is Taken Out of a Bonus?
For many bonus payments in California, estimated withholding may include:
– 10.23% California state withholding
– 1.3% California SDI
– 22% federal supplemental withholding
– FICA taxes (Social Security and Medicare)
Before FICA taxes, that is approximately 33.53% in combined federal, California PIT, and California SDI withholding for many separately paid bonuses, depending on the employee’s tax situation.
Important:
This calculator is provided for informational and estimation purposes only. Actual payroll tax withholdings may vary based on an employee’s tax elections, payroll setup, and other factors. Employers should consult a qualified tax, legal, or payroll professional for official calculations. If you need assistance with payroll processing or tax compliance, the Beyond team is available to help.