Bank bonus tax calculator
Last reviewed · figures computed by the same engine the app runs
A cash bank bonus is interest income, taxed at your ordinary marginal rate in the year it is credited, and reported on Form 1099-INT once your interest from that bank reaches $10. A $300.00 bonus at a combined 27% rate costs $81.00 in tax and leaves $219.00, so compare offers on the after-tax figure.
Try your own numbers
Interest is ordinary income; use your own marginal rates. Not tax advice, and nothing leaves your browser.
How the number is worked out
The IRS treats interest credited to an account you can draw on as taxable in the year it becomes available, and a cash bonus for a deposit is interest. The calculator applies your combined marginal rate to the bonus, which is how ordinary income is taxed at the margin.
Marginal, not average: the bonus sits on top of your other income, so it is taxed at the rate that applies to your last dollar. Use the bracket your income lands in, plus your state rate where one applies.
The result is an estimate for comparing offers, not a return figure. Credits, deductions and local taxes can move it, and the calculator says so.
Common questions
Do I get a 1099-INT for a bank bonus?
Almost always. The form is issued once reportable interest from one payer reaches $10 in the year, which every bank bonus clears on its own. If it does not arrive, the bonus is still reportable; the posting entry in your account activity is the figure to use.
Is a credit card sign-up bonus taxed the same way?
Usually not. A card bonus that requires spending is generally treated as a rebate on that spending rather than income, which is why card issuers do not send a form for it. A bank bonus requires a deposit, not a purchase, and that is the difference.
Which year does the bonus belong to?
The year it was credited to the account. A bonus qualified for in December and paid in January belongs to the January year.