Bonus Tax Calculator
Estimate federal withholding on your 2026 bonus at the 22% supplemental-wage rate. Enter your bonus, salary, and filing status to see take-home pay and your refund note.
Bonus Tax / Withholding Calculator 2026
FreeHow to Use This Calculator
Quick answer: Enter your gross bonus amount, choose your filing status, add your annual salary for context, and click "Calculate Bonus Tax." The calculator applies the flat 22% federal supplemental-wage withholding rate (37% on same-employer supplemental wages over $1 million), shows your take-home bonus, lists payroll taxes separately, and explains your marginal bracket and refund outlook. All calculations run entirely in your browser — your data never leaves your device.
Follow these steps for the most accurate estimate:
Step 1: Enter your gross bonus amount. This is the full bonus before any withholding — for example, $10,000. The calculator needs an amount greater than zero to run.
Step 2: Choose your filing status. Select Single, Married Filing Jointly, or Head of Household. Your status sets the standard deduction and the 2026 tax brackets used for the marginal-rate note.
Step 3: Enter your annual salary (regular wages). This optional input powers two things: the marginal-bracket lookup (salary plus bonus determines which 2026 bracket your bonus falls into) and the payroll-tax checks (whether your wages are near the Social Security wage base or the Additional Medicare threshold).
Step 4: Enter year-to-date supplemental wages from the same employer. Leave this at $0 unless you have already received very large bonuses, commissions, or other supplemental pay from the same employer this calendar year. It drives the $1 million test for the mandatory 37% rate on the excess.
Step 5: Click "Calculate Bonus Tax." Your results show federal withholding at the flat rate, take-home pay after federal withholding, Social Security and Medicare as separate lines, a marginal-rate note, and a refund-at-filing note.
How Bonus Withholding Works: The 22% Flat Rate
The IRS classifies bonuses as supplemental wages — pay that is separate from regular wages and paid as a lump sum or under conditions that distinguish it from ordinary payroll. Commissions, overtime, severance pay, prizes, and retroactive pay increases fall in the same category. Supplemental wages are subject to a special set of withholding procedures described in IRS Publication 15, section 7, and in federal regulation 26 CFR 31.3402(g)-1.
For supplemental wages up to $1 million, your employer may use the optional flat-rate method: withhold a flat 22% for federal income tax, with no regard to your Form W-4 entries. The withholding rate on supplemental wages remains 22% for 2026, as confirmed in the "What's New" section of IRS Publication 15. Most employers choose this method because it is simple, predictable, and requires no per-employee calculation.
Crucially, the flat 22% method ignores your Form W-4. Allowances, extra withholding amounts, and filing-status elections on your W-4 do not change the 22% figure. That is why a bonus check often looks "taxed more" than a regular paycheck: your normal withholding reflects your personalized W-4 settings and the progressive brackets, while the bonus gets a one-size-fits-all 22% haircut.
Remember that this is withholding, not final tax. Withholding is the employer's advance collection of the income tax you will ultimately owe on your annual return. Your bonus is ordinary income, and it is ultimately taxed at your marginal bracket — the rate on your last dollar of taxable income — which may be higher or lower than 22%. Any difference between what was withheld and what you actually owe is settled when you file: over-withholding comes back as a refund, and under-withholding must be paid with your return.
The $1 Million Rule: When 37% Applies
A second, stricter rule applies to very large supplemental payments. If the total supplemental wages paid to you by one employer during a single calendar year exceed $1 million, the excess is subject to mandatory federal withholding at 37%. This rule also comes from IRS Publication 15, and unlike the optional 22% method, the employer has no choice in the matter.
Details: how the $1 million test works (rare cases)
The $1 million threshold is tested per employer, per calendar year, and only the excess over $1 million is withheld at 37%. Everything up to the threshold uses the normal 22% flat method (or the aggregate method, if the employer chose it). For example, if you had already received $990,000 in supplemental wages from one employer this year and then earned a $50,000 bonus, the first $10,000 of that bonus (bringing the total to $1,000,000) would be withheld at 22%, and the remaining $40,000 would be withheld at 37%. Amounts from different employers are never combined for this test — a new employer starts a fresh $1 million clock. Like the 22% rate, the 37% rate is withholding only; your true liability is computed on your annual return at your actual marginal rates, and any over-withholding is refunded.
Fewer than one percent of employees ever reach this threshold, but it is the reason this calculator asks for year-to-date supplemental wages from the same employer. For everyone else, the field stays at $0 and the entire bonus is estimated at 22%.
Flat Method vs. Aggregate Method
Below the $1 million threshold, employers have two approved procedures, and the choice belongs to the employer — not to you. Understanding both explains why two coworkers can receive identical bonuses but see different withholding.
The optional flat-rate method (22%) withholds a flat 22% of the bonus with no reference to your Form W-4. It is fast and uniform, which is why payroll departments prefer it. Your W-4 allowances, filing status, and extra-withholding instructions are all disregarded for this payment.
The aggregate procedure works differently: the employer adds the bonus to your regular wages for the current payroll period and withholds on the combined amount as if it were a single payment, using your Form W-4 settings. Depending on your W-4 entries and where the combined payment lands in the withholding tables, the aggregate method can withhold more or less than 22%. An employee with many allowances might see less than 22% withheld; an employee whose regular pay already sits near the top of a bracket might see more.
This calculator defaults to the flat 22% method because it is the dominant practice and the only method that can be estimated without your employer's payroll-period data. If your employer uses the aggregate method, treat the 22% figure as a reference point and check your pay stub — the withheld amount, not the calculator, is what counts. Either way, your actual tax is fixed at filing time: the method changes only the timing of collection, never your final liability.
Withholding vs. Actual Tax: Your Marginal Bracket
The single most misunderstood fact about bonus taxation is that there is no special "bonus tax rate." A bonus is ordinary wage income. It stacks on top of your salary, and the combined total flows through the same progressive brackets as everything else you earn. The 22% figure is a withholding convenience; your real rate on the bonus is your marginal rate — the bracket your last dollar of taxable income falls into.
Here are the official 2026 federal income tax brackets used by this calculator (sources: IRS Revenue Procedure 2025-32 via the Tax Foundation 2026 brackets table):
| Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0–$12,400 | $0–$24,800 | $0–$17,700 |
| 12% | $12,401–$50,400 | $24,801–$100,800 | $17,701–$67,450 |
| 22% | $50,401–$105,700 | $100,801–$211,400 | $67,451–$105,700 |
| 24% | $105,701–$201,775 | $211,401–$403,550 | $105,701–$201,775 |
| 32% | $201,776–$256,225 | $403,551–$512,450 | $201,776–$256,200 |
| 35% | $256,226–$640,600 | $512,451–$768,700 | $256,201–$640,600 |
| 37% | $640,601+ | $768,701+ | $640,601+ |
The 2026 standard deductions applied in the marginal lookup are $16,100 (Single), $32,200 (Married Filing Jointly), and $24,150 (Head of Household). The calculator subtracts the standard deduction from your salary plus bonus to estimate taxable income, then reports the bracket that income lands in.
Why does this matter? If your combined taxable income keeps you inside the 12% bracket, the 22% withholding overshot your real liability by about ten percentage points — money you get back at filing time. If you are in the 32% or 35% bracket, the 22% withholding fell short, and you may owe a balance on this income. If you sit squarely in the 22% bracket, withholding roughly equals liability and little or no refund or balance arises from the bonus itself. Use our paycheck calculator to see how your regular salary withholding compares, and our tax refund calculator to model the full-year picture.
Worked Example: A $10,000 Bonus
Nothing clarifies bonus math like a concrete example. Take the following case:
$10,000 bonus, single filer, flat method:
federal withholding = $10,000 × 22% = $2,200
take-home (after federal withholding) = $10,000 − $2,200 = $7,800
Marginal note: the $10,000 is ordinary income; if salary + bonus keeps taxable income inside the 22% single bracket ($50,401–$105,700), withholding ≈ actual liability and little or no refund/balance arises on this income. If the filer is in the 12% bracket, ~10 points were over-withheld and refunded at filing.
Note that $7,800 is take-home after federal withholding only. Payroll taxes and any state withholding still apply on top, so the cash that actually reaches your bank account is lower. The calculator lists Social Security, Medicare, and Additional Medicare on separate lines precisely so you never mistake the federal-only figure for the final deposit.
Social Security and Medicare on Bonuses
Bonuses are wages for payroll-tax purposes, so FICA applies just as it does to your salary. For 2026, the employee rates are Social Security 6.2% on wages up to the wage base of $184,500, and Medicare 1.45% on all wages with no cap. Employees also pay Additional Medicare Tax of 0.9% on wages over $200,000, which the employer withholds without a matching contribution. Sources: IRS Publication 926 (2026) and Publication 15.
Two edge cases are worth knowing. First, if your salary has already carried you past the $184,500 Social Security wage base, your bonus may owe little or no Social Security tax — the calculator accounts for this by applying 6.2% only to the remaining room under the cap. Second, a large bonus can push your total wages over $200,000 and trigger the 0.9% Additional Medicare Tax on the portion above the threshold, even if your salary alone stayed below it. Both effects are shown as separate lines so you can see exactly where each dollar goes.
State Taxes on Bonuses Vary
There is no single national rule for state bonus taxation, so this page does not hard-code any state rate. State treatment varies widely: some states apply their own flat supplemental rate, others tax bonuses as ordinary wages through their regular tables, and a few states — such as Texas — have no income tax at all. States with large supplemental payrolls, such as California and New York, each follow their own published procedures. Check your state revenue agency for exact rates before budgeting your bonus, and see our state tax rates guide for an overview of all 50 states.
Refund or Balance Due at Filing
Withholding is an advance payment. If 22% exceeds your actual marginal liability on this income, the difference is refunded when you file; if it falls short, you owe the balance. Most middle-income employees land near the 22% bracket and see only a small swing, but employees in the 12% bracket routinely get a meaningful refund slice from each bonus, while employees in the 32% bracket and above should plan for a balance due — or adjust their regular withholding to cover it in advance.
The practical move is to treat each bonus as a data point, not a verdict. After your first bonus of the year, compare the withheld amount with your marginal bracket. If withholding consistently overshoots, you are giving the government an interest-free loan but can look forward to a refund; our tax refund calculator helps you quantify it. If it undershoots, consider submitting a new Form W-4 requesting extra withholding from regular pay, or setting aside the shortfall yourself. For the broader federal picture beyond bonuses, see our federal income tax calculator hub.
Tips for Bonus Season
Check your pay stub, not just the calculator. The stub shows whether your employer used the flat 22% method or the aggregate method. If the numbers differ from this page, the stub wins — it reflects your employer's actual procedure and your W-4 settings.
Time large bonuses thoughtfully. You cannot move the $1 million test across employers, but within one employer, bonuses paid in different calendar years fall under separate annual tests. This rarely matters outside executive compensation, yet it is worth knowing if you negotiate payout timing.
Do not confuse withholding with your tax rate. Telling friends your bonus was "taxed at 22%" describes collection, not liability. Your real rate is your marginal bracket, and framing it correctly prevents both unnecessary alarm and unpleasant April surprises.
Plan for payroll taxes and state tax. Federal withholding is only the first deduction. Subtract Social Security, Medicare, and your state's share before deciding what the bonus covers — a $10,000 bonus is never a $10,000 windfall.
Sources
- IRS Publication 15 (2026), "What's New" (22% supplemental-wage rate; 37% over $1 million) and section 7 (supplemental-wage procedures) — irs.gov/publications/p15
- 26 CFR 31.3402(g)-1(a)(6)–(7) (optional flat-rate vs. aggregate procedure; W-4 distinction) — ecfr.gov
- IRS Revenue Procedure 2025-32 via Tax Foundation, "2026 Tax Brackets and Federal Income Tax Rates" (brackets and standard deductions)
- IRS Publication 926 (2026) (Social Security 6.2% to $184,500; Medicare 1.45%; Additional Medicare 0.9% over $200,000) — irs.gov/publications/p926
This bonus tax calculator has been verified against IRS Publication 15 (2026), section 7, for the 22% flat supplemental-wage withholding rate and the mandatory 37% rate on same-employer supplemental wages over $1 million. The optional flat-rate versus aggregate-procedure distinction follows 26 CFR 31.3402(g)-1. Marginal-bracket context uses the official 2026 brackets and standard deductions (IRS Revenue Procedure 2025-32), and payroll-tax lines use the 2026 Social Security wage base of $184,500 at 6.2% and Medicare at 1.45% plus 0.9% over $200,000 per IRS Publication 926. State treatment is intentionally not hard-coded because each state sets its own supplemental-wage rules. All computations occur in your browser — your financial data never leaves your device.
Frequently Asked Questions
Your bonus is supplemental wages, so employers usually withhold a flat 22% for federal income tax instead of your regular paycheck rate. This withholding is only an advance payment. Your actual tax depends on total income and filing status, and any overpayment is refunded when you file.
A $10,000 bonus typically has $2,200 withheld for federal income tax at the flat 22% supplemental rate, leaving $7,800 before Social Security and Medicare taxes. Your state may withhold extra. The final tax is settled on your return, so you may owe less or get a refund.
Bonuses are not taxed at a higher rate than regular wages. The 22% flat withholding can look higher than your paycheck withholding, but your bonus is taxed as ordinary income at your normal marginal bracket. If withholding exceeded your actual liability, the difference comes back as a refund.
If your total supplemental wages from one employer exceed $1 million in a calendar year, the excess is subject to mandatory 37% federal withholding. This rule comes from IRS Publication 15. Like the 22% rate, it is withholding only, and the true liability is computed on your annual return.
Yes. Employers can either use the flat 22% optional rate or the aggregate method, which adds the bonus to your regular wages and withholds using your Form W-4 settings. The aggregate method can withhold more or less than 22%. Either way, your actual tax is fixed at filing time.
State treatment varies widely. Some states apply their own flat supplemental rate, others tax bonuses as ordinary wages, and a few states have no income tax at all. Social Security at 6.2% and Medicare at 1.45% generally still apply. Check your state revenue agency for exact rates.