Bonus tax calculator 2026
Most employers withhold a flat 22% federal income tax from bonuses. They also withhold 7.65% for Social Security and Medicare. A $5,000 bonus nets about $3,517.50 before state tax. Supplemental pay above $1 million in a year is withheld at 37%.
Before state tax. Federal withholding $1,100.00 + FICA $382.50. Social Security stops above the $184,500 wage base. The 0.9% Additional Medicare applies to wages above $200,000.
| Method | Federal withholding | Bonus after federal + FICA |
|---|---|---|
| Percentage (flat) method — 22% | $1,100.00 | $3,517.50 |
| Aggregate method — bonus added to a regular check | $1,166.31 | $3,451.19 |
How bonuses are taxed
A bonus is a "supplemental wage" under IRS rules (Publication 15, section 7). When you file, a bonus is taxed exactly like salary. There is no special bonus tax rate. That surprises people. What differs is the withholding. Your employer can calculate it two ways:
- Percentage (flat) method: withhold 22% of the bonus. This works when the bonus is paid separately or shown on its own line of the pay stub. Most employers use this one.
- Aggregate method: add the bonus to a regular paycheck. Compute withholding on the total as if that were your normal pay. Then subtract what the regular part alone would have had withheld. For that one period, it looks like a much bigger salary. So it often withholds more than 22%.
- Over $1 million: once supplemental wages pass $1,000,000 in the calendar year, the part above it must be withheld at 37%. That's the top rate. The employer has no choice here.
Worked example: $5,000 bonus, $3,000 biweekly paycheck, single
- Flat method: $5,000 × 22% = $1,100.00 federal withholding.
- FICA: $5,000 × 6.2% = $310.00 Social Security + $5,000 × 1.45% = $72.50 Medicare = $382.50.
- Bonus after federal and FICA: $5,000 − $1,100.00 − $382.50 = $3,517.50.
- Aggregate method instead: withholding on an $8,000 check ($1,486.69) − on a $3,000 check ($320.38) = $1,166.31 (23.326% of the bonus).
- Actual tax when you file: on a $78,000 salary the bonus falls in the 22% bracket. So it really costs $1,100.00 in federal income tax. The flat withholding was right on target.
Bonus after taxes: quick table (2026)
| Bonus | Federal (22%) | FICA (7.65%) | Net before state tax | Net with 5% state tax |
|---|---|---|---|---|
| $1,000 | $220.00 | $76.50 | $703.50 | $653.50 |
| $2,500 | $550.00 | $191.25 | $1,758.75 | $1,633.75 |
| $5,000 | $1,100.00 | $382.50 | $3,517.50 | $3,267.50 |
| $10,000 | $2,200.00 | $765.00 | $7,035.00 | $6,535.00 |
| $25,000 | $5,500.00 | $1,912.50 | $17,587.50 | $16,337.50 |
| $50,000 | $11,000.00 | $3,825.00 | $35,175.00 | $32,675.00 |
States handle bonuses differently. Some states have their own supplemental rate. California, for example, withholds 10.23% on bonuses and stock options and 6.6% on other supplemental wages. Other states just use their regular withholding tables. States with no income tax withhold nothing.
One more thing. If your wages for the year pass $184,500, Social Security stops. Only the 1.45% Medicare applies after that.
Frequently asked questions
Why was my bonus taxed so much?
Usually it wasn't taxed that much. It was withheld that much. Those are two different things. 22% federal plus 7.65% FICA plus state tax can take 30%–40% off the check. But your real tax is settled on your return. If your actual bracket is 10% or 12%, the 22% was too much. You get the difference back as a refund.
Is the 22% bonus rate my final tax?
No. The bonus is added to your other income on Form 1040. Then it's taxed at your regular rates. Take a single filer with a $78,000 salary. A $5,000 bonus adds $1,100.00 of federal tax. That's exactly 22%, because the bonus sits in the 22% bracket.
Are bonuses taxed at 37%?
Only the part of your supplemental wages above $1 million in a calendar year. That part must be withheld at 37%. Below $1 million, the optional flat rate is 22%.
Can I put my bonus in my 401(k) to lower taxes?
Yes, if your plan allows deferrals from bonuses. The deferred part skips federal income tax withholding. It does not skip FICA. The 2026 limit is $24,500 total for the year ($32,500 if you are 50 or older, $35,750 at ages 60–63).
Do bonuses count toward the Social Security wage base?
Yes. Bonuses are wages for FICA. Once your total 2026 wages from one employer reach $184,500, the 6.2% Social Security tax stops. It stays stopped for the rest of the year.
Sources
These estimates cover wages only. They use the standard deduction and no credits. Some things would lower your federal tax, and they are not here: the 2026 child tax credit ($2,200 per child) and the 2025–2028 deductions for tips (up to $25,000), qualified overtime (up to $12,500, or $25,000 married), seniors 65+ ($6,000 each) and car-loan interest (up to $10,000). If any of those apply to you, your real federal tax is lower.
- IRS Rev. Proc. 2025-32 (2026 brackets and standard deduction)
- SSA: 2026 Social Security wage base
- IRS Topic 560: Additional Medicare Tax
- IRS: One, Big, Beautiful Bill provisions
- Tax Foundation: State Income Tax Rates and Brackets, 2026
- IRS Publication 15 (Circular E), section 7: Supplemental Wages
- California EDD: supplemental wage withholding rates
Related calculators
Updated: October 2, 2026 · Sources and methodology