1. What is California Bonus Tax?

California bonus tax is the amount withheld from bonus payments in California for 2025. Bonuses are typically taxed at a flat supplemental rate or aggregated with regular wages.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Bonus \) — The bonus amount in USD
• \( TaxRate \) — The applicable tax rate (typically 22% federal + 6.6% CA state = 28.6% total)

Explanation: This calculates the estimated tax withholding on bonus payments in California for 2025.

3. Importance of Bonus Tax Calculation

Details: Understanding bonus taxation helps with financial planning and ensures proper withholding to avoid underpayment penalties.

4. Using the Calculator

Tips: Enter your bonus amount in USD and the applicable tax rate (default is 0.22 for federal supplemental rate). California state tax is typically an additional 6.6%.

5. Frequently Asked Questions (FAQ)

Q1: What's the typical bonus tax rate in California?
A: Federal supplemental rate is 22% (for bonuses under $1M), plus 6.6% CA state tax, totaling 28.6%.

Q2: Are bonuses taxed differently than regular income?
A: Yes, bonuses can be taxed at a flat supplemental rate (22% federal) or aggregated with regular wages.

Q3: Can I adjust my bonus withholding?
A: You may request additional withholding by submitting a new W-4 to your employer.

Q4: Is this calculator accurate for all situations?
A: This provides an estimate. Actual withholding may vary based on your total income and tax situation.

Q5: What about bonuses over $1 million?
A: Federal rate increases to 37% for amounts over $1 million.