Bonus Tax Calculator

Bonus Tax Calculator (2026)

Getting a bonus feels great until the deposit lands smaller than the number on the offer. The reason is withholding. The IRS treats a bonus as a supplemental wage, and most employers withhold federal income tax on it at a flat 22 percent instead of running it through your normal paycheck tables. On top of that come Social Security and Medicare, the same FICA taxes that hit every check, plus a state supplemental rate where your state sets one. This calculator estimates all of it. Enter your bonus, your filing status, and your state, and it shows the federal flat withholding, each FICA piece, the state line, and what actually reaches your account. Two methods exist for the federal part. The flat 22 percent method is what you see by default; the aggregate method combines the bonus with a regular paycheck and withholds on the total. The flat method is simpler and far more common, so it leads here, with the aggregate method one click away for comparison. Whatever your paystub shows withheld, that figure is a prepayment, not the final tax your bonus owes.

Bonus Amount (USD)

$

Prior Bonus Wages This Year (optional)

$

YTD Social Security Wages (optional)

$

Bonuses already paid this year. Once your year-to-date bonuses pass $1 million, the federal rate on the excess jumps to 37%.

Filing Status

State

No state income tax

Flat 22% method

Primary

Federal (flat 22%)$2,200

Social Security (6.2%)$620

Medicare (1.45%)$145

State supplemental$0

Total withheld$2,965

Net bonus$7,035

Effective withholding rate29.6%

This estimate is for planning purposes only and does not constitute tax or financial advice. Actual paycheck withholding depends on your employer's payroll system, custom W-4 elections, additional income, and personal tax situation. For specific tax-planning decisions, consult a licensed CPA or tax professional. Bonus estimates show paycheck withholding, not your final tax liability, which is settled when you file.

Withholding on a $10,000 bonus

How a $10,000 bonus is withheld for a single filer with no prior bonuses this year and no state income tax, using the 2026 flat method. State supplemental tax, where it applies, is added on top of these lines.

Withholding line	Amount
Federal (flat 22%)	$2,200
Social Security (6.2%)	$620
Medicare (1.45%)	$145
Total withheld	$2,965
Net bonus	$7,035

Where the flat 22% comes from

A bonus is a supplemental wage, money paid on top of your regular salary. When an employer pays it separately, the simplest path is to withhold federal income tax at a single flat rate, set at 22 percent for 2026. No W-4 elections, no brackets, no math per employee. That flat rate is why a big bonus can look heavily taxed at first glance. It is not punishment for earning more, just a standardized prepayment that gets reconciled against your actual brackets at tax time.

Withholding is not your final tax

This is the piece most people miss. The 22 percent withheld is not the tax your bonus owes. It is an estimate held back for the IRS. When you file, the bonus joins the rest of your income and is taxed at your real marginal rate, which might be 12 percent, 24 percent, or something else entirely. If 22 percent was too much, the excess returns as a refund. If your bracket is higher, you make up the gap. The number on your paystub is a starting point, not a verdict.

FICA and state tax stack on top

Federal income tax is only one slice. Because a bonus is wages, Social Security takes 6.2 percent up to the annual wage base and Medicare takes 1.45 percent with no ceiling, exactly as on a normal check. Then comes your state. Nine states withhold nothing because they have no income tax. Others set a flat bonus rate, from North Dakota's 1.5 percent up to New York's 11.70 percent state figure. The rest fold the bonus into regular withholding. Stack all three layers and you get the real bite, which the calculator above breaks out line by line.

Frequently asked questions

Why is my bonus taxed at 22%?

The 22 percent is a federal withholding rate for supplemental wages, not a special bonus tax. The IRS lets employers withhold a flat 22 percent on bonuses paid separately from regular wages, which keeps payroll simple. It is a prepayment toward your yearly tax bill, and your real rate on the bonus is settled when you file.

Is a bonus taxed at a higher rate than regular pay?

No. A bonus is not taxed at a higher rate than your salary. It is withheld at a flat 22 percent, which can be more or less than your true marginal rate. At filing, the bonus is added to your other income and taxed at your normal brackets. If too much came out, the difference comes back as a refund.

What is the difference between the flat and aggregate methods?

The flat method withholds a straight 22 percent on a bonus paid separately. The aggregate method adds the bonus to a regular paycheck, withholds on the combined amount using your W-4, then subtracts what the regular wages alone would have withheld. The flat method is simpler; the aggregate method can take out more or less depending on your pay.

What happens to bonuses over $1 million?

Once your total supplemental wages for the year pass $1 million, the federal flat rate on the portion above that line rises from 22 percent to 37 percent. The 37 percent rate is mandatory for that excess, not optional. Only the amount over $1 million is hit at 37 percent; everything up to the line stays at 22 percent.

Does my state withhold tax on a bonus?

It depends on the state. Nine states have no income tax, so they withhold nothing on a bonus. Some states set a specific flat supplemental rate, such as Georgia at 5.19 percent or California at 10.23 percent. Others have no separate rate and tax the bonus as regular wages. The calculator applies your state's 2026 treatment.

Do Social Security and Medicare apply to bonuses?

Yes. A bonus is wages, so FICA applies like any paycheck. Social Security takes 6.2 percent up to the $184,500 annual wage base, and Medicare takes 1.45 percent with no cap. High earners owe an extra 0.9 percent Medicare surtax above $200,000. These come out on top of federal and state withholding.

How to read these numbers

Treat the result as a withholding estimate, not a filed return. It applies the 2026 federal flat method, FICA, and your state's supplemental rule to the bonus you enter. Your final tax depends on your total income, deductions, and credits for the year. Where a state has no separate bonus rate, the calculator estimates the line from 2026 brackets and labels it so. For a full-year picture that folds the bonus into your salary, use the main paycheck calculator and add the bonus to your gross.

How This Page Is Reviewed

The bonus tax calculator applies the 2026 federal supplemental flat method (22 percent up to $1 million in cumulative supplemental wages, 37 percent above), FICA (6.2 percent Social Security to the wage base, 1.45 percent Medicare with the 0.9 percent high-earner surtax), and per-state supplemental withholding. States with a published flat supplemental rate use that rate; states that tax bonuses as regular wages are estimated from the 2026 engine and labeled. The aggregate method runs through the Pub 15-T withholding tables. Withholding is a prepayment, not final tax.

Reviewed by

PaycheckCalc Research Desk

Last reviewed

2026-06-25

Primary sources

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