How to use the bonus tax calculator
Calculating tax on a bonus involves two different numbers, and this calculator shows both. The first is withholding: what your employer takes out of the bonus check before it hits your bank account. The second is your actual tax: the extra federal income tax the bonus adds to your return when you file. They are rarely the same, which is why a bonus can lead to a bigger refund or a surprise bill.
- Enter the gross bonus and your regular annual salary from the same employer.
- Pick your filing status and pay frequency. These drive the aggregate method and the actual-tax comparison.
- Choose the withholding method. If the bonus is paid as its own check, your employer almost always uses the flat percentage method. If it is added to a regular paycheck with no separate amounts, choose aggregate.
- Open “State tax & 401(k)” to add a state supplemental rate or a 401(k) percentage taken from the bonus.
The top half of the results is your net bonus. The bottom half compares the federal withholding with the tax the bonus really costs you, so you can see whether you are likely to get some of it back.
The 2026 federal bonus tax rate
The IRS calls bonuses supplemental wages, a category that also covers commissions, overtime paid separately from regular wages, severance, back pay, awards and prizes. For 2026 there are two federal withholding rates for supplemental wages paid by one employer:
| Supplemental wages this calendar year | Federal withholding |
|---|---|
| Up to $1,000,000 | 22% (optional flat rate) or aggregate method |
| Over $1,000,000 | 37% (mandatory) |
The flat 22% option is only available if the employer withheld income tax from your regular wages this year or last year and the bonus is identified separately. The 37% rule applies to the portion of supplemental wages above $1 million no matter what you put on your W-4. On top of federal income tax, bonuses carry the same payroll taxes as regular pay: 6.2% Social Security up to the $184,500 wage base and 1.45% Medicare, plus 0.9% Additional Medicare once your wages from that employer pass $200,000. Our guide to the bonus tax rate walks through every rule in detail.
Bonus tax formula
FICA = bonus × 6.2% (until wage base) + bonus × 1.45%
Net bonus = bonus − federal − FICA − state − 401(k)
Actual tax on bonus = tax(salary + bonus) − tax(salary)
Over-withheld = federal withholding − actual tax
Under the aggregate method, your employer adds the bonus to a regular paycheck, figures withholding on the combined amount as if you earned that much every pay period, and subtracts what it would have withheld on the regular check alone. Because the combined check is annualized, it often pushes withholding into a higher bracket for that one check, which is why aggregate withholding on a bonus can look painfully high.
Worked example: $10,000 bonus on a $45,000 salary
A single filer earning $45,000 a year gets a $10,000 bonus paid as a separate check in 2026, using the percentage method:
| Gross bonus | $10,000 |
| Federal withholding (22%) | −$2,200 |
| Social Security (6.2%) | −$620 |
| Medicare (1.45%) | −$145 |
| Net bonus (before state tax) | $7,035 |
| Federal tax on salary alone (after $16,100 standard deduction) | $3,220 |
| Federal tax on salary + bonus | $4,420 |
| Actual federal tax on the bonus | $1,200 |
| Over-withheld (comes back as a refund) | $1,000 |
This worker’s taxable income stays inside the 12% bracket even with the bonus, so the bonus only costs $1,200 of federal income tax, an effective 12%. The employer withheld 22%, so roughly $1,000 comes back at tax time, assuming the rest of their withholding is accurate.
If the same bonus were added to a biweekly paycheck under the aggregate method, federal withholding would be about $2,564 instead of $2,200, because the combined check is annualized as if the worker earned $305,000 a year.
Withholding vs. actual tax by salary
The flat 22% rate is one-size-fits-all, so it over-withholds for lower earners and under-withholds for higher earners. Here is a $10,000 bonus for a single filer in 2026:
| Salary | Withheld (22%) | Actual tax | Rate on bonus | Difference |
|---|---|---|---|---|
| $30,000 | $2,200 | $1,200 | 12.0% | $1,000 over |
| $45,000 | $2,200 | $1,200 | 12.0% | $1,000 over |
| $75,000 | $2,200 | $2,200 | 22.0% | Matches |
| $120,000 | $2,200 | $2,364 | 23.6% | $164 under |
| $220,000 | $2,200 | $3,200 | 32.0% | $1,000 under |
If your salary already puts you in the 24% bracket or higher, set aside the difference or raise your W-4 withholding so you are not hit with a balance due. The tax refund calculator shows how the whole year adds up.
Why bonus checks look heavily taxed
Bonuses are not taxed at a special higher rate. They are ordinary wages and end up taxed at your normal bracket rates on your Form 1040. What feels like extra tax usually comes from three things:
- Stacked withholding. Federal (22%), Social Security and Medicare (7.65%) and state tax combined often take 30% to 40% of the check.
- Aggregate annualizing. A large bonus inside a regular paycheck is withheld as if you earned that much all year.
- Other deductions. Some employers also take a 401(k) percentage, garnishments or benefit deductions from bonus checks.
Key point: withholding is a prepayment, not the final bill. Anything over-withheld from a bonus is credited against your total tax when you file and comes back in your refund.
Ways to reduce tax on a bonus
- Send part of it to your 401(k). Pre-tax deferrals cut federal and most state income tax (but not FICA), up to the $24,500 employee limit for 2026.
- Fund an HSA if you have a high-deductible health plan; payroll HSA contributions also avoid FICA.
- Time it. If you can choose between a December and January payout, take it in the year you expect a lower income.
- Bunch deductions. A big bonus year can be a good year to group charitable gifts and itemize.
State rules vary: some states use a flat supplemental rate, some use your regular withholding, and states with no wage income tax withhold nothing. Need the whole year’s picture? Try the federal income tax calculator or the paycheck calculator, and if you want a bonus to land at an exact after-tax amount, use the gross-up calculator.
Frequently asked questions
How much tax is taken out of a bonus?
For a separately paid bonus, most employers withhold 22% federal income tax, 6.2% Social Security (until you reach the $184,500 wage base) and 1.45% Medicare, plus any state tax. A $10,000 bonus typically nets about $7,035 before state tax.
What is the bonus tax rate for 2026?
The federal supplemental withholding rate is 22% on bonuses up to $1 million in a calendar year and 37% on the excess. That is a withholding rate only; your real tax on the bonus is your marginal bracket rate.
How do you calculate tax on a bonus?
For withholding, multiply the bonus by 22% for federal tax and 7.65% for FICA, then apply your state rate. To find the tax you actually owe, compute your federal tax on salary plus bonus, then subtract the tax on salary alone. The calculator does both.
Will I get bonus tax back?
Possibly. If your marginal rate is below 22% (roughly taxable income under $50,400 for a single filer), the flat rate over-withholds and the excess comes back as part of your refund. Social Security and Medicare are not refundable unless you had multiple employers and overpaid Social Security.
Are bonuses taxed higher than regular pay?
No. Bonuses are taxed at the same rates as your salary when you file. Only the withholding method differs, and the aggregate method can make a single check look heavily taxed.
Does a 401(k) contribution lower tax on my bonus?
Yes, if your plan applies your deferral election to bonuses. The deferred amount is excluded from federal income tax withholding and from your taxable wages, though Social Security and Medicare still apply.
What happens with a bonus over $1 million?
Supplemental wages above $1 million from the same employer in one calendar year must be withheld at 37%. Enter earlier bonuses in “Supplemental wages already paid this year” and the calculator splits the bonus at the $1 million mark.