The Wisconsin bonus tax calculator at the top of this page helps employers quickly estimate employee take-home pay (also known as net pay) for bonuses.
Behind the numbers
Behind the numbers
Updated: July 2, 2025
Does Wisconsin tax bonuses?
Yes. Wisconsin treats bonuses as taxable income and includes them in gross wages for withholding purposes.
How to calculate bonus tax in Wisconsin
Use Wisconsin’s withholding tables to calculate tax on the combined total of regular wages and bonus pay. Bonuses are typically combined with regular wages and taxed using Wisconsin’s standard withholding tables. If you pay supplemental wages (like bonuses, commissions, or overtime) at the same time as regular wages, calculate withholding as if the total were a single wage payment.
If the bonus is paid separately, you can:
- Add the bonus to regular wages from either the current or most recent prior pay period in the same calendar year, calculate withholding on the total, then subtract what’s already been withheld from regular wages.
Alternative method:
Wisconsin also allows employers to calculate withholding on supplemental wages only using specific flat percentage rates based on the employee’s estimated annual gross income:
- 3.54% for income under $12,760
- 4.65% for $12,760 to under $25,520
- 5.3% for $25,520 to under $280,950
- 7.65% for $280,950 and up
Example:
If an employee earning $300,000 annually receives a $5,000 bonus, the flat rate for their income level is 7.65%.
- $5,000 × 7.65% = $382.50 withheld for Wisconsin state tax.
The employee would receive $4,617.50 before accounting for federal tax and other deductions.
How do bonuses work in Wisconsin?
Bonuses must be included in gross income, withheld appropriately, and reported on W-2s.
What is the bonus tax rate in Wisconsin?
Rates range from 3.5% to 7.65%
How can employers in Wisconsin pay bonuses to employees?
Bonuses in Wisconsin can be paid via:
- Check
- Direct deposit
- Pay card
How much tax is taken out of a bonus in Wisconsin?
Up to 7.65% state + 22% federal = 29.65%
Why are bonuses taxed differently than standard pay?
They aren’t — same rules apply to all wages.