BONUS TAX CALCULATOR 2026
The IRS classifies bonuses as supplemental wages — taxed separately from your regular paycheck. Employers use either the 22% flat percentage method (most common) or the aggregate method (combined with regular wages). Both result in the same actual tax owed at year-end; only withholding differs. Use this calculator to see exactly how much comes out of your bonus — federal, FICA, and state — and whether you’ll get a refund or owe more when you file.
BONUS TAX CALCULATOR 2026
22% flat rate · Aggregate method · All 50 states · Net check amount · Refund/owe estimate · 401(k) reducer
All 50 states + D.C. — supplemental withholding rates for bonuses in 2026. Sources: IRS Pub 15-T, EY 2026 Supplemental Rates Guide, Deel, Patriot Software.
| State | 2026 Bonus / Supplemental Rate | Method Notes |
|---|
THE TWO FEDERAL BONUS WITHHOLDING METHODS COMPARED
| Factor | Percentage Method (22% Flat) | Aggregate Method (Combined) |
|---|---|---|
| How it works | Employer withholds 22% federal income tax flat from the entire bonus | Employer adds bonus to regular pay, annualizes, applies progressive tables, takes difference |
| When used | Bonus is paid as a separate check or separately identified | Bonus is combined with regular paycheck wages |
| Simplicity | Very simple — predictable 22% rate | More complex — result varies by pay period and salary |
| Result for lower earners (< 22% bracket) | Over-withholds — you get a refund | More accurate — withholds closer to true amount owed |
| Result for higher earners (> 22% bracket) | Under-withholds — you may owe at filing | May over-withhold if combined income hits higher bracket for that period |
| Actual tax owed at year-end | Same — true liability is identical regardless of method | Same — method only affects withholding timing |
| Employer’s choice | Yes — employer decides which method to use | Yes — employer decides which method to use |
| $1M+ bonus | 37% mandatory on the amount above $1M | 37% mandatory on the amount above $1M |
HOW MUCH TAX IS WITHHELD FROM A BONUS — EXAMPLES
| Bonus Amount | Federal (22%) | SS (6.2%) | Medicare (1.45%) | CA State (10.23%) | No-Tax State | Net Check (No-Tax State) |
|---|---|---|---|---|---|---|
| $1,000 | $220 | $62 | $14.50 | $102.30 | $0 | $703.50 |
| $2,500 | $550 | $155 | $36.25 | $255.75 | $0 | $1,758.75 |
| $5,000 | $1,100 | $310 | $72.50 | $511.50 | $0 | $3,517.50 |
| $10,000 | $2,200 | $620 | $145 | $1,023 | $0 | $7,035 |
| $25,000 | $5,500 | $1,550 | $362.50 | $2,557.50 | $0 | $17,587.50 |
| $50,000 | $11,000 | $3,100 | $725 | $5,115 | $0 | $35,175 |
| $100,000 | $22,000 | $6,200* | $1,450 | $10,230 | $0 | $70,350* |
| $1,000,000 | $220,000 | $11,439 max | $14,500 | $102,300 | $0 | $754,061* |
| $1,500,000 | $220,000 + $185,000 | $11,439 max | $21,750 | $153,450 | $0 | $1,061,561* |
*SS withholding assumes no prior wages; may be less if SS wage base ($184,500) already reached. Additional Medicare Tax (0.9%) applies to wages above $200k.
SOCIAL SECURITY AND THE $184,500 WAGE BASE — BONUS IMPACT
The 2026 Social Security wage base is $184,500 — up from $176,100 in 2025. This means Social Security (6.2%) is only withheld on a bonus up to the amount needed to reach the $184,500 annual cap. If you receive a year-end bonus and have already earned $184,500 in regular wages, no Social Security will be withheld from your bonus at all.
| Scenario | YTD Wages Before Bonus | SS Withheld on $10,000 Bonus | Medicare Withheld |
|---|---|---|---|
| Bonus early in year | $20,000 | $620 (6.2% × $10,000) | $145 |
| Bonus mid-year, approaching base | $179,500 | $310 (6.2% × $5,000 remaining) | $145 |
| Bonus after reaching SS base | $190,000+ | $0 — SS base already reached | $145 |
| Bonus crosses $200k threshold | $195,000 | $0 (SS base reached) + 0.9% addl Medicare on $5k | $145 + $45 addl |
BONUS TAX CALCULATOR — FAQs
What is the federal bonus tax rate in 2026?
The IRS supplemental flat withholding rate is 22% for bonuses up to $1 million paid to an employee in a calendar year. For any portion exceeding $1 million, the mandatory rate is 37%. This is confirmed by IRS Pub. 15 (2026, Circular E). The 22% is a withholding shortcut — your actual tax owed depends on your total annual income and marginal bracket.
Why does my bonus feel so heavily taxed?
Because 22% federal withholding is a flat rate applied to everyone, regardless of their actual tax bracket. If you’re in the 12% bracket, your bonus was over-withheld by 10% and you’ll get that money back as a tax refund. Additionally, Social Security (6.2%) and Medicare (1.45%) are always withheld from bonuses, and state taxes apply on top — making the total withholding feel very high, even when your actual year-end tax liability is lower.
What is the difference between the percentage and aggregate method?
The percentage method withholds 22% flat when the bonus is paid separately. The aggregate method combines the bonus with regular wages and applies progressive tables — this can result in higher or lower withholding depending on the combined amount. Your actual tax owed at year-end is identical under both methods; only the amount withheld from the check differs.
Is Social Security withheld from my bonus?
Yes — at 6.2% on the amount needed to reach the $184,500 SS wage base (2026). If you’ve already earned $184,500 in wages before the bonus, no Social Security is withheld from the bonus. Medicare (1.45%) has no cap and is always withheld from the entire bonus.
Can I reduce taxes on my bonus by contributing to a 401(k)?
Yes. Traditional 401(k) contributions reduce your federal (and state, in most states) taxable income. A $3,000 401(k) contribution from a $10,000 bonus saves roughly $660 in federal income tax at the 22% bracket. The 2026 401(k) limit is $23,500 (under 50), $31,000 (age 50+), or $34,750 (age 60–63).