Bonus Tax Calculator (US, 2026)
Estimate the withholding on a bonus: the 22% federal supplemental rate, Social Security and Medicare, and your state's supplemental rate. Free, no sign-up, runs entirely in your browser.
YTD wages matter because Social Security tax (6.2%) stops once your 2026 wages pass the $184,500 wage base. Leave at 0 if unsure. Withholding assumptions are labeled in the results.
Assumes the flat-rate (percentage) withholding method and 2026 figures: 22% federal up to $1M of supplemental wages, Social Security wage base $184,500. Withholding is not your final tax; your true liability is settled when you file.
How bonus withholding works
Federal income tax. The IRS treats bonuses as supplemental wages. Paid separately from salary, most employers withhold a flat 22% (the percentage method). If your supplemental wages for the year exceed $1 million, the excess is withheld at 37%. Some employers instead use the aggregate method, lumping the bonus into a regular paycheck and withholding on the combined amount.
FICA. Bonuses pay the same payroll taxes as wages: 6.2% Social Security up to the 2026 wage base of $184,500, and 1.45% Medicare with no cap. If your year-to-date wages already exceed the wage base, no Social Security is withheld on the bonus. Wages above $200,000 also trigger the 0.9% Additional Medicare Tax.
State. Many states publish their own supplemental rate (for example, California 10.23% on bonuses, New York 11.70%, Oregon 8.00%). States without an income tax withhold 0%. Where a state publishes no separate supplemental rate, this tool uses the state's flat or top marginal rate as an approximation; use the custom override if you know your payroll department's rate.
Example: $10,000 bonus, no state income tax, below the Social Security cap
| Line item | Amount |
|---|---|
| Gross bonus | $10,000.00 |
| Federal (22%) | −$2,200.00 |
| Social Security (6.2%) | −$620.00 |
| Medicare (1.45%) | −$145.00 |
| State (0%) | $0.00 |
| Estimated take-home | $7,035.00 |
Frequently asked questions
Why is my bonus taxed so high?
It usually is not taxed at a special higher rate; it is withheld at a flat rate. Bonuses are supplemental wages, and most employers withhold federal income tax at a flat 22% (37% on supplemental wages above $1 million in a year), plus 7.65% FICA and a state rate. That stack can top 35%, but the withholding is only an advance payment. Your actual tax is set by your total income and marginal bracket when you file.
What is the 22% flat rate on bonuses?
When a bonus is paid separately from regular wages, the IRS lets the employer withhold federal income tax at a flat 22% instead of running the normal payroll tables. This optional flat rate applies to supplemental wages up to $1 million per employee per year; the excess above $1 million must be withheld at 37%. The 22% rate has applied since 2018 and is permanent under current law.
What is the difference between the percentage and aggregate methods?
Under the percentage (flat rate) method, the employer withholds a straight 22% federally. Under the aggregate method, the bonus is added to your most recent regular paycheck and withholding is computed on the combined amount as if it were one payment, which can push you into a higher withholding bracket for that check. Either way, your final liability is the same; only the timing of the withholding differs.
Can I get the over-withheld tax back?
Yes. Withholding is an estimate, not the final bill. When you file your return, the bonus is simply added to your ordinary income and taxed at your marginal rate. If too much was withheld, the excess comes back as part of your refund; if too little was withheld, you owe the difference. Large refunds mean you gave the Treasury an interest-free loan, so some people adjust their W-4 after a big bonus.