The California bonus tax calculator at the top of this page uses the supplemental tax rate so employers can easily figure out the net pay (or take-home pay) your employee should take home for wage payments such as bonus pay.
Behind the numbers
Behind the numbers
Updated: June 27, 2025
Does California tax bonuses?
Yes. If a bonus is paid with regular wages, the combined amount is taxed as regular income. If paid separately, California allows employers to withhold at a flat rate of 10.23% for bonuses.
How to calculate bonus tax in California
Use the 10.23% flat rate if the bonus is separate. If combined with regular wages, use standard withholding tables for the total amount. For other supplemental wages, 6.6% may apply.
What is the bonus tax rate in California?
Use the 10.23% flat rate if the bonus is separate, plus 22% for federal taxes (and our tool at the top of this page will do this for you). If combined with regular wages, use standard withholding tables for the total amount. For other supplemental wages, 6.6% may apply.
How do bonuses work in California?
Employers can pay bonuses lump sum or with a regular paycheck. If separate, they must apply the appropriate flat rate and report it accordingly on Form W-2.
How can employers in California pay bonuses to employees?
Bonuses in California can be paid via:
- Check
- Direct deposit
- Pay card
Why are bonuses taxed differently than standard pay?
The state provides a flat rate to streamline withholding and avoid underpayment. It’s also higher to account for the variable nature of bonuses.
How can employers in California pay bonuses to employees?
Bonuses in California can be paid via:
- Check
- Direct deposit
- Pay card
How much tax is taken out of a bonus in California?
Flat 10.23% for state + 22% federal = 32.23% total, not including Social Security or Medicare.