Bonus Details
| Tax Component | Rate | Amount Withheld |
|---|
NYC Bonus Tax Quick Reference
How much you keep from a bonus in NYC (single filer, salary over $200k, all FICA rates apply):
| Bonus Amount | Federal (22%) | NY State (9.62%) | NYC Local (3.876%) | FICA Est. | You Keep |
|---|---|---|---|---|---|
| $5,000 | $1,100 | $481 | $194 | $383 | ~$2,842 (57%) |
| $10,000 | $2,200 | $962 | $388 | $218 | ~$6,232 (62%) |
| $25,000 | $5,500 | $2,405 | $969 | $145 | ~$15,981 (64%) |
| $50,000 | $11,000 | $4,810 | $1,938 | $145 | ~$32,107 (64%) |
| $100,000 | $22,000 | $9,620 | $3,876 | $145 | ~$64,359 (64%) |
| $250,000 | $55,000 | $24,050 | $9,690 | $145 | ~$161,115 (64%) |
| $500,000 | $110,000 | $48,100 | $19,380 | $145 | ~$322,375 (64%) |
| $1,000,000 | $370,000 (37%) | $96,200 | $38,760 | $145 | ~$494,895 (49%) |
*Assumes salary exceeds SS wage base ($176,100). FICA column shows only Medicare (1.45%) since SS wage base already exceeded. Bonus over $1M uses 37% federal rate.
Why bonuses feel so much heavier than salary: Your regular salary has taxes spread across 26 paychecks. A bonus arrives as a single hit with flat supplemental rates applied all at once — 22% federal + 9.62% NY + 3.876% NYC = 35.5% before FICA. Most NYC earners see 40–44% disappear immediately from a bonus check.
How Bonus Withholding Works
The IRS allows employers to use two methods for supplemental wage withholding:
- Flat rate method (most common): Apply 22% federal (or 37% over $1M) flat to the bonus, plus state supplemental rates. This is what most employers do for year-end bonuses and RSU vesting.
- Aggregate method: Add the bonus to your regular pay, calculate tax on the combined amount, then subtract tax already withheld. Results in a higher withholding rate for high earners.
This calculator uses the flat rate method, which is standard for most NYC bonuses.
RSU Vesting in NYC
When RSUs vest, the fair market value of the shares is treated as ordinary income — supplemental wages. Your employer will withhold using the same flat rates as a cash bonus. You may receive fewer shares than you expected because shares are sold to cover the withholding.
Example: 100 shares vest at $50/share = $5,000 income. At ~43% withholding, $2,150 is withheld, leaving ~$2,850 net. Your employer typically sells ~43 shares and deposits the cash with the IRS, leaving you 57 shares.