How Bonuses Are Taxed in Texas

By Team SalaryCalculate · 6/18/2025

If you're expecting a bonus this year and you live in Texas, you're probably wondering: How much of it will I actually keep? This guide breaks down how bonuses are taxed in Texas, why it differs from other states, and how to calculate your take-home bonus.

🌎 Texas Income Tax Basics

Let’s start with the good news: Texas has no state income tax. That means your bonus won’t be subject to additional state withholding like it might be in California or New York.

But that doesn’t mean your bonus arrives tax-free. Instead, it’s subject to federal withholding and FICA taxes (Social Security + Medicare).

📈 Federal Bonus Tax Rules

The IRS treats bonuses as "supplemental wages," and they can be taxed in one of two ways:

1. Flat Rate Method:

Most employers withhold 22% for federal income tax on bonuses under $1 million.
On top of that, you’ll pay FICA taxes (6.2% Social Security + 1.45% Medicare = 7.65%).
Total withholding: ~29.65%

2. Aggregate Method:

Your employer adds your bonus to your regular pay check and withholds based on your total earnings.
This can sometimes result in higher withholding upfront, but it may even out when you file your tax return.

Bonus Tax Example (Flat Rate Method)

Let’s say you receive a $10,000 bonus in Texas.

Federal income tax (22%): $2,200
FICA (7.65%): $765
Texas income tax: $0

Total withheld: $2,965
Net bonus (take-home): $7,035

Try It Yourself: Texas Bonus Calculator

Use the Texas Bonus Calculator to see exactly how much of your bonus you’ll keep after taxes. Just enter your bonus amount and see a real-time breakdown of federal and FICA withholding—with no guesswork.