New York Bonus Tax Calculator:
Employers' Trusted Tool for Accurate Bonus Payments
The New York bonus tax calculator at the top of this page assists employers in quickly estimating the employee take-home pay (or net pay) for bonuses.
Does New York State Tax Bonuses?
Yes. New York treats supplemental wages—which include bonuses, commissions, sales awards, and overtime—as regular income for tax purposes. If supplemental wages are paid simultaneously with regular wages, and the amounts are not separated, employers must calculate withholding as if the total sum were a single wage payment for that period.
How to Calculate Bonus Tax in New York State
When supplemental wages are paid separately (or separately itemized within the same payment), the withholding method used is determined by whether income tax is also withheld from the employee’s regular wages:
Option 1: Use the Supplemental Rate
Withhold using the New York State supplemental rate of 11.70% (0.1170).
Option 2: Combine and Subtract
Combine the supplemental and regular wages from the most recent payroll period this year. Calculate the withholding on the total as if it were a single payment, then subtract the amount already withheld from the regular wages. The remaining amount is then withheld from the supplemental wages.
Note: If no income tax was withheld from the employee’s regular wages, you must use Option 2.
Vacation pay that is paid in addition to regular wages for the same period is treated as a supplemental wage. For more on what counts as supplemental wages, you can also refer to IRS Publication 15 (Circular E). If the employee resides in New York City or Yonkers, additional local tax withholding applies.
What are the New York Supplemental Bonus Tax Rates?
| Location | Supplemental Rate |
| New York State | 11.70% |
| NYC | 4.25% |
| Yonkers Resident | 1.95975% |
| Yonkers Nonresident | 0.50% |
Bonus Payment and Taxation Details
How do bonuses work in New York? Bonuses are reported on Form W-2 and are subject to both state and local income taxes.
How can employers in New York pay bonuses to employees? Bonuses can be paid via:
– Check
– Direct deposit
– Pay card
Why are bonuses taxed differently than standard pay? They are not—unless the employee lives in NYC or Yonkers, in which case an additional local tax applies.
In New York City, you would use a supplemental rate of 4.25% (0.0425).
In Yonkers, you would withhold at the following supplemental rates:
– Yonkers Resident: 1.95975% (0.0195975)
– Yonkers Nonresident: 0.50%
How much tax is withheld from a bonus in New York?
– Federal: 22%
– State + Local (up to): approximately 14.8%
– Combined (up to): approximately 36.8%, plus FICA