Georgia Bonus Tax Calculator:
Employers' Trusted Tool for Accurate Bonus Payments
The bonus tax calculator powered by Beyond, found at the top of this page, utilizes the supplemental tax rate so employers can easily determine the net pay (or take-home pay) your employee should receive for lump-sum wage payments such as bonus pay.
Does Georgia Tax Bonuses?
Yes. Georgia allows a flat withholding rate on supplemental wages. This flat rate applies to other types of payments as well, including commissions and gifts.
How to Calculate Bonus Tax in Georgia
For bonuses that are paid separately, the rule is to apply the flat withholding rate of 5.39% through June 30, 2025. The state rate is scheduled to change on July 1 of this year; more information on that is available below.
Otherwise, if the bonus is not paid separately, you must aggregate the bonus with regular wages and apply the standard withholding tables.
How Much Tax is Taken Out of a Bonus in Georgia?
Due to legislation that was signed by Governor Brian Kemp, there are key rate changes to keep in mind as the year progresses:
– For the period beginning January 1, 2025, and ending on June 30, 2025, bonuses and other compensation are withheld at a rate of 5.39%.
– For the period beginning July 1, 2025, and ending on December 31, 2025, bonuses and other compensation will be withheld at a reduced rate of 5.19%.
The beyond calculator tool at the top of the page will automatically update these changes when the new rates go into effect.
Why Are Bonuses Taxed Differently Than Standard Pay?
Using a flat rate simplifies the process for large, one-time payments like bonuses.
How Can Employers in Georgia Pay Bonuses to Employees?
Bonuses can be paid using several methods, including:
– Check
– Direct deposit
– Pay card
How Do Bonus Payments Work in Georgia?
Employers have the option to choose the flat rate method for separate payments or to aggregate the bonus with regular wages for standard withholding.
Total Tax Withholding
The total amount withheld from a bonus in Georgia is the sum of state and federal tax:
Note that this total is before any additional payroll deductions are applied.
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