Signing Bonus Calculator
See what a signing bonus is worth after supplemental tax withholding — and how much you would repay if you leave before the clawback period ends.
How it works
Net = bonus − (bonus × withholding%) · If leave months < clawback period → repay the full gross bonus
A signing bonus is taxed as supplemental wages, so employers withhold a flat federal rate (22% up to $1M) plus state and payroll tax — meaning far less than the headline number lands in your account. Most bonuses also carry a clawback: leave before a set period (often 12 months) and you must repay it, usually the full gross amount even though you only received the net. Any over-withholding is reconciled when you file your annual return.
Worked example
A $20,000 signing bonus with 32% combined withholding nets $13,600 in your account. If the clawback period is 12 months and you leave at 18 months you keep it all — but leaving at 9 months would force you to repay the full $20,000 gross.
Frequently asked questions
Why was my signing bonus taxed so heavily?
Bonuses are supplemental wages: the IRS default is 22% federal flat withholding (37% above $1M), on top of Social Security, Medicare and any state tax. It is withholding, not your final tax — if it exceeds your actual rate, you get the difference back at tax time.
Do I really repay the full gross if I leave early?
Most clawback clauses require repaying the gross amount you were awarded, not the net you received, which can be a nasty surprise. Read the agreement — some pro-rate the repayment by time served, and you may be able to recover the tax withheld through your return.
Is a signing bonus better than a higher salary?
A bonus is one-time cash; a salary increase compounds through future raises and boosts bonus and retirement contributions tied to base. For long tenures a raise usually wins, but a bonus is useful for immediate needs or to bridge lost equity.
Related calculators
Educational estimate, not financial or tax advice. Real taxes, benefits and offers vary — confirm details with your employer or a professional.