The Virginia 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: July 12, 2025
Does Virginia tax bonuses?
Yes. Virginia includes bonuses in taxable wages and generally taxes them using its standard withholding tables. That said if bonuses (or other supplemental wages) are paid separately from regular wages and income tax was already withheld from the employee’s regular wages, employers have the option to withhold using a flat rate of 5.75%. You can run this rate with the calculator above.
How to calculate bonus tax in Virginia
Supplemental wages such as bonuses, commissions, overtime pay, back pay, and nondeductible moving reimbursements are typically combined with regular wages and taxed using the state’s standard withholding method.
If supplemental wages are:
- Combined with regular wages in a single payment (and not separately identified), calculate withholding as if the total were a single wage payment.
- Paid separately, calculate withholding as if the supplemental wages were added to the employee’s most recent or current regular payroll period.
How can employers in Virginia pay bonuses to employees?
Bonuses in Virginia can be paid via:
- Check
- Direct deposit
- Pay card
How do bonuses work in Virginia?
Bonuses are treated as income, taxed through normal withholding, and reported on Form W-2.
What is the bonus tax rate in Virginia?
Virginia’s income tax ranges from 2% to 5.75%, depending on income. A flat 5.75% rate may be used for separately paid bonuses if tax was already withheld from regular wages (which is how the calculator at the of this page crunches the numbers).
Why are bonuses taxed differently than standard pay?
They aren’t — Virginia uses standard rates for all types of compensation.
How much tax is taken out of a bonus in Virginia?
Up to 5.75% state + 22% federal = 27.75%