How is a bonus taxed in CA?

Apologies if this is a basic question — I am new to this and trying to learn more.

I am single and have no dependents. My base salary is $84k, and my bonus is 20% of my salary so my gross income would be $100.8k.

How much of my bonus would I take home after taxes?

4 Likes

The tax treatment of bonuses is the same as that of any other pay income. There’s no difference.

If no wage base limits have been met, the expected amount withheld from a paycheck made as “supplemental income” in California will be 40.98%. This includes all forms of withholding taxes.

2 Likes

Take-home and after-tax are two different things. To be safe, aim to bring home only half.

1 Like

You’re conflating taxes and withholding.

The government does not care what percentage of your $100,000 is bonus or salary—it is wage income—and it will be taxed as ordinary income.

If it’s a separate check, the withholding will likely be in the 22% (fed) level. will be higher if it is included in a regular salary.

1 Like

Depending on the tax bracket from which your basic wage is derived, my experience ranges from 40% to 60%. But come tax filing season, I happen to get at least 20% back.

I’m confused, I always assumed that take-home pay was the amount that was left over after taxes and perks were subtracted from your gross income.

In California, bonuses are taxed differently than regular income:

Federal Tax: Bonuses are taxed at a flat 22% rate.

California State Tax: Bonuses and stock options are taxed at a flat 10.23% rate.

If your bonus is paid separately, these rates apply. If it’s included with your regular paycheck, it’s taxed at your normal income tax rate.