Bonus Tax Calculator
See what your 2026 bonus is worth after federal supplemental withholding (22% or aggregate), state tax, and FICA. Net pay and effective rate, all 50 states.
Bonus Tax Calculator
Your bonus
Withholding method
Separate check uses the flat percentage method. Bonus bundled into a paycheck uses the aggregate method.
Filing and location
Helps apply the Social Security cap and the additional Medicare threshold accurately.
A 401(k) deferral lowers federal and state taxable wages. It usually does not reduce Social Security or Medicare.
Aggregate method details
The aggregate result is an estimate using 2026 annualized percentage-method brackets and a standard W-4 (no extra adjustments).
State figures are estimates based on 2026 supplemental withholding rates (EY 2026 roundup); your employer's actual state rate may differ. Federal flat method follows IRS Pub 15. Withholding is not your final tax, the amount you owe is settled when you file.
How bonus taxes work in 2026
The IRS treats a bonus as a supplemental wage (IRS Publication 15, section 7). For most people that means a flat 22% federal withholding on the bonus, applied to the first $1,000,000 of supplemental wages you receive in a calendar year. The slice above $1,000,000 is withheld at 37%. On top of that you also pay Social Security, Medicare, and, in most states, a state income tax.
Here is the part people miss: this is withholding, not your final tax. The 22% flat rate is just a standard amount your employer takes out now. What you actually owe on the bonus gets settled when you file your return, so you may get some of it back as a refund or owe a little more, depending on your full-year income.
Percentage method vs. aggregate method
An employer can withhold federal tax on a bonus in one of two ways. The percentage method applies the flat 22% rate and is used when the bonus is paid on a separate check. It is the simplest and most predictable option, so it is what this calculator defaults to.
The aggregate method comes into play when the bonus is added onto a regular paycheck. The employer combines the two amounts, withholds using your W-4 and the IRS tables, then subtracts the tax already taken out of the regular pay. Because the combined check can bump you into a higher withholding bracket for that one pay period, a bundled bonus tends to look more heavily taxed up front. On a $5,000 bonus, the flat method takes $1,100 in federal withholding; the aggregate result depends on your normal paycheck and pay frequency. Switch the method chip above to compare the two.
Social Security, Medicare, and state tax on your bonus
A bonus is wages, so FICA applies. Social Security is 6.2% on wages up to the 2026 wage base of $184,500 (counting your year-to-date wages), which caps the employee Social Security tax at $11,439 for the year. Medicare is 1.45% on all wages with no cap, plus an additional 0.9% on wages over $200,000. That $200,000 additional-Medicare threshold for withholding is the same no matter your filing status.
State tax varies a lot. Nine states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming) have no income tax, so they withhold nothing on a bonus. Others use a flat supplemental rate, such as Pennsylvania at 3.07%, while California taxes bonuses at a special 10.23% supplemental rate. The state figures here are 2026 estimates, and your employer's actual rate may differ.
How to keep more of your bonus (and get the rest back)
The most reliable way to lower the tax on a bonus is to defer part of it into a pre-tax 401(k) or HSA, which reduces the federal and state taxable amount. Just remember those deferrals are usually still subject to Social Security and Medicare. And if the 22% flat withholding is higher than the marginal rate you actually owe, you get the difference back when you file.
This page estimates one bonus. To model a full paycheck or run payroll for a whole team with year-to-date wage-base tracking across all 50 states and DC, the Payroll Calculator app does the precise math. You can also compare a steady salary with the Salary After Tax by State tool, run a team with the Multi-Employee Payroll Calculator, check employer unemployment taxes with the SUTA & FUTA Employer Tax Calculator, or see the full cost of a hire with the Employer Cost of an Employee Calculator.
Frequently Asked Questions
Common questions about bonus tax calculator
How is a bonus taxed in 2026?
The IRS treats a bonus as a supplemental wage. On a separate check, employers withhold a flat 22% federal rate on the first $1,000,000 of supplemental wages for the year, then 37% on anything above that. Social Security (6.2% up to the $184,500 wage base), Medicare (1.45% plus a 0.9% surtax over $200,000), and your state supplemental rate come out on top of that.
What is the bonus tax rate for 2026?
The federal supplemental withholding rate is a flat 22% on bonuses up to $1,000,000 in a calendar year, and 37% on the part above $1,000,000. Remember that this is a withholding rate, not your final tax rate, so what comes out may not match what you actually owe.
Why is my bonus taxed so high?
A bonus can look heavily taxed because the flat 22% federal withholding, plus FICA and state tax, often adds up to more than your usual marginal rate. But it is withholding, not a final tax. If 22% turns out to be more than your real bracket, you get the difference back as a refund when you file.
Percentage method vs. aggregate method, which will my employer use?
If the bonus is paid on a separate check, employers usually go with the percentage method (flat 22%). If the bonus is bundled into a regular paycheck, they often use the aggregate method, which adds the bonus to your normal pay and withholds using your W-4 and the IRS tables, then subtracts the tax already taken out of the regular pay.
Do I pay Social Security and Medicare on a bonus?
Yes. A bonus counts as wages, so 6.2% Social Security applies up to the 2026 wage base of $184,500 (combined with your other wages for the year), 1.45% Medicare applies with no cap, and an extra 0.9% Medicare surtax applies to wages over $200,000.
Which states don't tax bonuses?
The nine states with no broad income tax do not withhold state tax on a bonus: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Every other state and DC applies some form of state withholding.
Can I get my bonus tax back?
Maybe. If the flat 22% federal withholding is more than the marginal rate you actually owe on that income, the extra comes back as part of your refund when you file. If your real bracket is higher than 22%, you may owe a bit more at filing.
How can I reduce taxes on my bonus?
Deferring part of the bonus into a 401(k) or HSA lowers the federal and state taxable amount. One catch: most pre-tax deferrals still have Social Security and Medicare withheld, so only specific FICA-exempt benefits skip those.