How Florida Bonus Tax Works
Bonus pay in Florida is taxed exactly the same way as in any other state at the federal level (22% supplemental withholding under $1M, 37% above $1M, plus FICA), with one key advantage: Florida applies no state-level supplemental tax on top.
A $20,000 bonus in Florida nets roughly $14,200 after federal supplemental withholding (22%) and FICA. The same bonus in California faces an additional CA supplemental rate of 10.23% on bonuses, dropping the take-home further.
For W-2 employees, the IRS's 22% supplemental rate is *withholding*, not final tax. Your actual federal tax on the bonus is determined at year-end through your normal return. If your marginal rate is below 22%, you receive the difference back as a refund; if above, you owe more.
Year-end planning: a Florida resident receiving a large bonus has more flexibility than high-tax-state peers because there is no state-tax acceleration to manage. 401(k) deferrals, HSA contributions, and timing of charitable giving remain the main federal-side levers.
Frequently asked questions
What is the supplemental tax rate on bonuses in Florida?+
Federal supplemental withholding is 22% on bonuses under $1M and 37% above $1M. Florida adds 0% — no state supplemental rate.
Can I avoid the 22% bonus tax?+
No, withholding is required at 22% under federal rules. But you can defer some of the bonus pretax (401(k) up to the annual limit; HSA where eligible) which reduces both withholding and final tax.