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Sign-On Bonus Tax Calculator

A sign-on bonus is taxed exactly like any other bonus: 22% federal supplemental withholding, 7.65% FICA, and your state's rate. Two planning wrinkles are unique: clawback terms (if you leave early, you usually repay the gross amount, which can mean reclaiming withheld tax at filing) and timing (a January start can push the bonus into a single year and briefly over $1M supplemental wages for very large offers).

Quick answer: A $15,000 sign-on bonus nets roughly $8,950–$10,550 after withholding, depending on state. If you repay it under a clawback, you repay the gross $15,000 and recover the excess withholding on your tax return.

$
%
Estimated take-home
$9,802.50
of $15,000.00 gross (65% kept)
Gross bonus$15,000.00
Federal supplemental withholding (22%)prepayment — your real tax is set at filing− $3,300.00
FICA (6.2% SS + 1.45% Medicare)− $1,147.50
State supplemental (custom 5%)− $750.00
Net bonus$9,802.50

Withholding-level estimate. The 22% federal rate is a prepayment, not your final tax — excess withholding is refunded when you file. FICA of 7.65% assumes you are under the Social Security wage base for the year. Not tax advice.

Core facts
WithholdingSame as any bonus: 22% federal + 7.65% FICA + state
ClawbackRepayment is usually the gross amount; recover withheld tax via your return (or a reduced W-2 under a 2026 repayment claim)
TimingTaxed in the year received, not the year you accept

Common uses

  • Compare two offers with different signing bonus sizes
  • Understand what lands on day one versus what the clawback clause risks
  • Budget a relocation around the net signing bonus

Frequently asked questions

Frequently Asked Questions

Do I repay the gross or the net if I leave before the clawback period ends?
Most agreements require repayment of the gross bonus. The excess tax withheld comes back to you either through your year-end tax position or, for same-or-next-year repayments, through the Section 1341 credit mechanism — talk to a tax pro for large amounts.

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