Tennessee bonus tax calculator
Tennessee has no state income tax, so a bonus loses only the 22% federal rate plus Social Security and Medicare. See your net bonus.
- ๐บ๐ธ US federal & state rules
- 2026 federal 22% supplemental rate and state rates
- See sources
Bonus after withholding
$3,517.50
29.7% of a $5,000 bonus is withheld
- Federal 22%
- $1,100.00
- Social Security
- $310.00
- Medicare
- $72.50
- Tennessee tax
- none
This is an example. Enter your numbers above and press the button to see your own result.
Other bonus sizes in this state
| $1,000 | $703.50 |
|---|---|
| $2,500 | $1,758.75 |
| $10,000 | $7,035.00 |
| $25,000 | $17,587.50 |
- This is the percentage method, used when a bonus is paid separately from regular wages. If your employer adds the bonus to a regular paycheck, withholding comes from the normal tables and can be higher or lower.
- Withholding is not your final tax. A bonus is ordinary income on your return, and the flat 22% is often more than a middle-income earner owes, so part comes back as a refund.
Show the math
| Bonus | $5,000.00 |
|---|---|
| Federal supplemental withholding 22% | โ$1,100.00 |
| Social Security 6.2% | โ$310.00 |
| Medicare 1.45% | โ$72.50 |
| Net bonus | $3,517.50 |
What to do next
How it works
The IRS lets employers withhold a flat 22% on supplemental wages such as bonuses when they are paid separately. Social Security and Medicare apply as usual. Tennessee adds no state tax.
Things to keep in mind
If your employer folds the bonus into a regular paycheck, withholding uses the normal tables on the combined amount, which can take out more in that period. Either way the final tax is settled on your return.
Bonuses over $1 million in a year are withheld at 37% federal on the excess. Social Security stops once your wages for the year pass $184,500.
Sources
Rules applied as of 2026-01-01. See the sources below for details.
- IRS Publication 15 (2026), What's New, dated Dec 15, 2025Checked 2026-10-19
- IRS Topic no. 751 (reviewed 24-Sep-2026)Checked 2026-10-19
- SSA, Federal Register 90 FR (2025-19763) 'Cost-of-Living Increase and Other Determinations for 2026' (Nov 3, 2025)Checked 2026-10-19
Frequently asked questions
How are bonuses taxed in Tennessee?
Federal withholding at 22%, Social Security at 6.2% and Medicare at 1.45%. Tennessee has no state income tax, so nothing more comes out.
Is the bonus really taxed at that rate?
No. Withholding is a prepayment. On your return the bonus is ordinary income taxed at your bracket. If 22% plus state is more than your actual rate, the difference comes back as a refund.
Can I reduce the tax on my bonus?
Putting part of it into a traditional 401(k) lowers federal and most state income tax on it, though not Social Security and Medicare. Ask payroll before the bonus is paid.