Tennessee Bonus Tax Calculator

For a $5,000 bonus with $60,000 earned so far this year: $1,100 federal (22% flat rate), $310 Social Security, $73 Medicare, and $0 Tennessee state tax — about $1,483 total, leaving $3,518. Tennessee has no state income tax, so nothing extra comes out: only the federal 22% flat rate, Social Security and Medicare.

It isn't, exactly: 22% is the federal flat withholding rate for supplemental wages paid separately from regular pay (37% above $1 million in a year). Your actual tax is settled on your return, where the bonus is ordinary income; if 22% over-withheld relative to your bracket, the difference comes back as refund.

No, because Tennessee taxes neither: there is no state income tax on wages or bonuses. Federal rules still apply in full.

The withholding is largely fixed, but the tax isn't: putting part of the bonus into your traditional 401(k) (if your plan allows bonus deferrals) removes it from income tax entirely, and an HSA contribution does the same. Both must be arranged with payroll before the bonus is paid.