How Texas taxes bonuses
Texas has no state income tax on wages, so a bonus loses only federal income tax, Social Security and Medicare.
Federal withholding is the same in every state. Most employers take a flat 22% of the bonus (37% on supplemental pay over $1,000,000 in a year). Social Security takes 6.2% up to the yearly wage base and Medicare 1.45%. If your employer adds the bonus to a regular $2,500 paycheck instead, the aggregate method withholds about $1,150.54 of federal tax on a $5,000 bonus, against $1,100.00 with the flat rate.
Take-home pay on a bonus in Texas
What is withheld from bonuses of different sizes, with the federal flat rate, for a single filer who has not yet reached the Social Security wage base this year.
| Bonus | Federal income tax | Social Security and Medicare | Texas deductions | Take-home bonus | You keep |
|---|---|---|---|---|---|
| $1,000 | $220.00 | $76.50 | $0.00 | $703.50 | 70.3% |
| $2,500 | $550.00 | $191.25 | $0.00 | $1,758.75 | 70.3% |
| $5,000 | $1,100.00 | $382.50 | $0.00 | $3,517.50 | 70.3% |
| $10,000 | $2,200.00 | $765.00 | $0.00 | $7,035.00 | 70.3% |
| $25,000 | $5,500.00 | $1,912.50 | $0.00 | $17,587.50 | 70.3% |
| $50,000 | $11,000.00 | $3,825.00 | $0.00 | $35,175.00 | 70.3% |
Texas bonus taxes compared with nearby states
The same $5,000 bonus, flat federal rate, in each state that borders Texas. Texas leaves as much of a bonus as any state that borders it.
| State | State bonus withholding | State taxes on the bonus | Take-home bonus |
|---|---|---|---|
| Texas | No income tax | $0.00 | $3,517.50 |
| Arkansas bonus tax calculator | 3.7% flat | $185.00 | $3,332.50 |
| Louisiana bonus tax calculator | Regular tables | $154.50 | $3,363.00 |
| New Mexico bonus tax calculator | 5.9% flat | $295.00 | $3,222.50 |
| Oklahoma bonus tax calculator | 4.5% flat | $225.00 | $3,292.50 |
More Texas pay calculators
For your regular take-home pay, use the Texas paycheck calculator. To see a bonus next to your regular paycheck, try the bonus paycheck calculator. Employers paying a bonus can use the bonus payroll calculator or the Texas payroll calculator. The bonus tax calculator page compares every state.
Sources
Federal figures follow IRS Publication 15. See how we calculate for the withholding method.