Bonus Tax Calculator 2026

Employers usually withhold a flat 22% federal tax on bonuses (37% on amounts over $1 million). Withholding is not your final tax — the calculator shows your real tax on the bonus too.

Updated 2026-10-03 · 2026 IRS figures

Bonus take-home (withholding)$3,51870.3% of the bonus

Federal withholding (22% flat supplemental)	$1,100
Social Security + Medicare	$383
State tax	$0
Actual federal tax on the bonus at filing	$1,100
Likely owed at filing	$0

You keep $3,518 70.3%
Federal $1,100 22.0%
FICA $383 7.6%

Your result is ready

Key 2026 federal tax facts

For 2026, Social Security tax of 6.2% applies to wages up to $184,500, up from $176,100 in 2025.
Medicare tax of 1.45% applies to all wages with no cap, plus a 0.9% Additional Medicare Tax on wages above $200,000 ($250,000 for married couples filing jointly).
The 2026 standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.
The seven federal income tax rates of 10%, 12%, 22%, 24%, 32%, 35% and 37% were made permanent by the One, Big, Beautiful Bill Act.
In 2026 the 37% top rate applies to taxable income over $640,600 for single filers and over $768,700 for married couples filing jointly.
The Child Tax Credit is $2,200 per qualifying child for 2026, of which up to $1,700 is refundable.

Paycheck calculator

Two ways your employer can withhold on a bonus

Bonuses, commissions and similar payments are "supplemental wages", and IRS Publication 15 gives employers two ways to withhold federal income tax on them.

Percentage (flat-rate) method: if the bonus is paid separately or identified separately from regular wages, and income tax was withheld from your regular wages, the employer can simply withhold 22%. Most large employers use this.
Aggregate method: the employer adds the bonus to a regular paycheck and withholds as if the combined amount were your normal pay for that period. Because withholding tables annualize each check, a $5,000 bonus on top of a $2,500 biweekly check is withheld as if you earned $7,500 every two weeks, which often produces a larger withholding than the flat rate.
Mandatory rate: once your supplemental wages from one employer pass $1 million in a calendar year, the excess must be withheld at 37% regardless of your W-4.

Is 22% too much or too little? Three examples

Withholding is a prepayment, not the tax itself. Your real tax on a bonus is the extra income tax it adds to your annual bill, which depends on your bracket. The table compares the 22% withheld with the actual 2026 federal income tax the bonus adds for a single filer.

Salary	Bonus	Withheld at 22%	Actual extra federal tax	At tax time
$40,000	$10,000	$2,200	$1,200	≈ $1,000 back
$70,000	$5,000	$1,100	$1,100	About even
$180,000	$25,000	$5,500	$6,000	≈ $500 more owed

What the table tells you

If your salary leaves you in the 10% or 12% bracket, the flat 22% over-withholds and you get the difference back as part of your refund. If you are in the 22% bracket the withholding is roughly right. If you are in the 24%, 32% or higher brackets, 22% is not enough and the shortfall becomes a balance due in April — large bonuses for high earners are the most common cause of a surprise tax bill.

Social Security and Medicare are withheld separately at 6.2% and 1.45%. Once your year-to-date wages reach the $184,500 Social Security wage base, the 6.2% stops, so a year-end bonus paid after you hit the cap only loses 1.45% to Medicare (plus 0.9% Additional Medicare Tax withholding on wages above $200,000, which employers apply regardless of filing status). Someone who has already earned $175,000 this year would pay Social Security on only the next $9,500 of a bonus.

Ways to keep more of a bonus

Defer part of it into a traditional 401(k) if your plan allows elective deferrals from bonuses. The deferral avoids income tax now (not FICA) and counts toward the $24,500 limit for 2026.
Check whether your employer will pay it in January instead of December if you expect a lower income next year. Bonuses are taxed in the year you receive them, not the year you earned them.
If you are a high earner expecting a large bonus, raise withholding with a new Form W-4 or make an estimated payment for that quarter to avoid an underpayment penalty.
State income tax is withheld too. Many states have their own supplemental withholding rate; the calculator shows the actual extra state tax rather than withholding.

Checking the bonus on your pay stub

A bonus check or bonus line is easy to audit in a minute. Work through the deductions in this order and compare each with the stub:

Federal income tax: 22% of the bonus if your employer uses the flat-rate method. A much higher figure usually means the aggregate method was used.
Social Security: 6.2% of the bonus, or less if the bonus took your year-to-date wages past $184,500; nothing if you passed it earlier in the year.
Medicare: 1.45% of the bonus, plus 0.9% on any part that takes your year-to-date wages above $200,000.
State income tax: depends on the state; some states use a flat supplemental rate, others the regular tables.
Retirement deferrals: your usual 401(k) percentage may apply to bonuses unless you elected otherwise.

Frequently asked questions

Why are bonuses taxed so high?

They aren't taxed differently — they're withheld differently. The flat 22% withholding may be more or less than your real marginal rate, and the difference is settled when you file.

Why did almost 40% of my bonus disappear?

Add the pieces: 22% federal withholding, 7.65% Social Security and Medicare, state withholding, and any 401(k) deferral. Withholding is not the final tax; if your bracket is lower than 22%, part of it comes back when you file.

Does a bonus count toward the Social Security wage base?

Yes. Bonuses are wages for Social Security and Medicare. Once your total wages for the year reach $184,500, no more 6.2% Social Security tax is withheld that year.

Can my employer withhold 22% if they withheld nothing from my regular pay?

No. The flat-rate method is only allowed when income tax was withheld from your regular wages. Otherwise the employer must use the aggregate method.

Are commissions taxed like bonuses?

Yes. Commissions are supplemental wages, so employers can use the same flat-rate or aggregate withholding methods.

Does a bonus raise my overtime rate?

It can. Under the FLSA, non-discretionary bonuses (for example production or attendance bonuses promised in advance) must be included in the regular rate used for overtime. Discretionary bonuses are excluded.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.