No-Income-Tax States: Maximum Bonus Take-Home
Nine states levy no personal income tax on wages, making them ideal for bonus recipients. Only federal taxes (22% flat supplemental) and FICA apply. Alaska, Florida, Nevada, New Hampshire (no tax on wages), South Dakota, Tennessee (wages exempt), Texas, Washington, and Wyoming all have zero state income tax on regular wages.
$25,000 bonus take-home by state — 2025 estimates, flat 22% federal + standard FICA
| State | Supplemental Withholding Rate | On $25K Bonus | Net After Federal+FICA+State |
|---|---|---|---|
| Texas / Florida (0%) | 0% | $0 | $17,587 |
| Pennsylvania (3.07%) | 3.07% | $767 | $16,820 |
| Illinois (4.95%) | 4.95% | $1,238 | $16,349 |
| Georgia (5.39%) | 5.39% | $1,348 | $16,239 |
| Minnesota (6.25%) | 6.25% | $1,563 | $16,024 |
| New Jersey (3.5%) | 3.5% | $875 | $16,712 |
| New York (11.7%) | 11.7% | $2,925 | $14,662 |
| California (10.23% + 1.1% SDI) | 11.33% | $2,833 | $14,754 |
| Oregon (~8%) | 8% | $2,000 | $15,587 |
| Hawaii (~11%) | 11% | $2,750 | $14,837 |
A $25,000 bonus in Texas nets approximately $17,587. The same bonus in California nets approximately $14,754 — a $2,833 difference from state taxes alone. Over a career of annual bonuses, this gap represents tens of thousands of dollars in cumulative tax differences.
New York City: The Double State-Plus-Local Tax
State + local supplemental bonus tax rates in major US cities — 2025
| Location | State Supplemental Rate | Local Rate | Combined State+Local |
|---|---|---|---|
| New York City | 11.7% | 3.876% | 15.58% |
| Yonkers, NY | 11.7% | 1.477% | 13.18% |
| Philadelphia, PA | 3.07% | 3.75% | 6.82% |
| Detroit, MI | 4.05% | 2.4% | 6.45% |
| Columbus, OH | ~4% | 2.5% | ~6.5% |
| Houston, TX | 0% | 0% | 0% |
| Los Angeles, CA | 10.23% + 1.1% SDI | 0% | 11.33% |
Do Supplemental Rates Match Regular Income Tax Rates?
Not necessarily. Many states have separate supplemental withholding rates that differ from their regular income tax brackets. California’s 10.23% supplemental rate may be higher or lower than your effective state rate at filing — you reconcile the difference when you file your state return. States with flat income taxes (like Illinois and Pennsylvania) typically apply the same rate to both.
Calculate Your Bonus Take-Home by State
Select your state to see the exact combined federal, state, and local tax withholding on your specific bonus amount.