Bonus Tax Calculator (2026)
Estimate your bonus take-home pay for 2026. Federal supplemental withholding (22%, or 37% over $1M), Social Security, Medicare, and state bonus tax rates — with every step shown.
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Why bonuses feel "extra taxed"
Open a bonus pay stub and the withholding looks brutal — often 35–45% gone before the money reaches you. But almost none of that is a special "bonus tax." Three ordinary things stack up at once:
- Federal withholding at a flat 22%. When a bonus is paid separately from regular wages, most employers use the IRS percentage method for supplemental wages: a flat 22% federal withholding (IRS Publication 15, 2026). That rate is deliberately set at the third tax bracket — convenient for payroll, but higher than the actual marginal rate of most bonus recipients.
- Full FICA. Social Security (6.2%) and Medicare (1.45%) apply to the entire bonus, exactly as they do to salary.
- State supplemental withholding. Many states add their own flat rate on top — California's 10.23% is the famous one.
Add 22% + 7.65% + ~5–10% state and you're at 35–40% withholding. But withholding is not tax. Your bonus is ordinary income: when you file, it's taxed at your marginal bracket like everything else, and anything over-withheld comes back as a refund.
The two federal methods employers can use
Percentage method (flat 22%). Allowed when the bonus is identified separately from regular wages and income tax was withheld from your regular wages. Simple, predictable — this is what the calculator models.
Aggregate method. The employer adds the bonus to your regular pay for the period and runs the combined amount through normal withholding tables. This can look worse — a $5,000 bonus added to a $4,000 biweekly paycheck gets withheld as if you earned $9,000 every two weeks — but your annual liability is unchanged.
The $1 million rule. Cumulative supplemental wages above $1,000,000 in a calendar year must be withheld at 37%, the top federal rate. Below $1M it's the employer's choice (22%); above $1M there's no choice.
Worked example: $10,000 bonus, California, 2026
Assume $80,000 of wages already earned this year and no prior supplemental wages:
| Step | Math | Result |
|---|---|---|
| Gross bonus | — | $10,000 |
| Federal withholding (22%) | $10,000 × 22% | $1,100 |
| Social Security | $10,000 × 6.2% (under $184,500 wage base) | $620 |
| Medicare | $10,000 × 1.45% | $145 |
| Additional Medicare | wages $90,000 < $200,000 | $0 |
| California supplemental | $10,000 × 10.23% | $1,023 |
| Total withheld | $2,888 | |
| Bonus take-home | $10,000 − $2,888 | $7,112 |
The 28.9% combined withholding looks steep — but if this worker's actual marginal rate is 22% federal + 9.3% California, their true tax on the bonus is about $3,130, and the $2,888 withheld is roughly right. If their marginal rate were 12%, they'd get a meaningful refund.
State supplemental withholding rates (2026)
| State | Supplemental rate | Source |
|---|---|---|
| California | 10.23% (bonuses & stock options) | EDD DE 44 / 2026 CA Employer's Guide |
| New York | 11.70% | Patriot Software 2026 chart |
| Oregon | 8.00% | Patriot Software 2026 chart |
| Minnesota | 6.25% | EY 2026 payroll newsflash |
| New Mexico | 5.90% | Patriot Software 2026 chart |
| Rhode Island | 5.99% | Patriot Software 2026 chart |
| Alabama | 5.00% | EY 2026 payroll newsflash |
| Kansas | 5.00% | EY 2026 payroll newsflash |
| Missouri | 4.70% | EY 2026 payroll newsflash |
| North Carolina | 4.09% | Patriot Software 2026 chart |
| Nebraska | 3.50% | EY 2026 payroll newsflash |
| Ohio | 3.50% | Patriot Software 2026 chart |
| Louisiana | 3.09% | EY 2026 payroll newsflash |
| Illinois | ~4.95% (aggregate; flat income rate used as estimate) | — |
| TX, FL, WA, NV, TN, WY, SD, AK, NH | 0% (no wage income tax) | — |
States not listed use the aggregate method or have no published flat rate — enter your employer's rate manually with the "Other" option. Rates verified October 2026; re-checked every January.
What this calculator assumes
- The employer uses the percentage method (flat 22% federal). Aggregate-method results will differ for that paycheck but not for the year.
- The $1M threshold counts cumulative supplemental wages (bonuses, commissions, severance, etc.) paid by the employer this year — enter what you've already received.
- Additional Medicare uses the $200,000 single threshold; married filing jointly is $250,000.
- Pre-tax 401(k) deferrals on the bonus reduce federal/state withholding but not FICA — the calculator doesn't model deferrals; see our 401(k) paycheck impact calculator for that.
- All figures are estimates for planning, not tax advice. Withholding ≠ liability; your return settles the difference.
Data sources
- Federal: IRS Publication 15 (2026), Supplemental Wages; 22% optional / 37% mandatory over $1M.
- FICA: SSA 2026 — $184,500 Social Security wage base; 6.2% / 1.45%; $200k/$250k Additional Medicare thresholds.
- State: California EDD DE 231PS & 2026 Employer's Guide; EY 2026 payroll newsflash (AL, AR, CA, KS, LA, ME, MN, MO, MT, NE); Patriot Software 2026 supplemental rates chart (NM, NY, NC, ND, OH, OK, OR, RI, VT, VA, WI).
Frequently asked questions
Why does my bonus look so heavily taxed?
It usually isn't taxed more — it's withheld more. Most employers withhold federal tax on bonuses at a flat 22% supplemental rate (IRS Publication 15, 2026), which is higher than many workers' actual marginal bracket. Your real tax is settled when you file your return: over-withheld amounts come back as a refund.
Is a bonus taxed at a higher rate than my salary?
No. Bonuses are ordinary income taxed at your normal marginal rates when you file. The 22% is only a withholding shortcut employers use on separately-paid supplemental wages. If your marginal rate is 12%, the extra 10 points withheld on a bonus is effectively an interest-free loan to the IRS until refund season.
What happens with bonuses over $1 million?
Once your cumulative supplemental wages for the calendar year exceed $1,000,000, your employer must withhold 37% (the top federal rate) on the excess — this part is mandatory, not optional (IRS Publication 15, 2026). The first $1M of supplemental wages stays at 22%.
Do Social Security and Medicare apply to bonuses?
Yes. Bonuses are wages for FICA purposes: 6.2% Social Security applies until your total yearly wages hit the $184,500 wage base (2026), and 1.45% Medicare applies to the whole bonus with no cap. If your total wages cross $200,000 (single), an extra 0.9% Medicare tax applies to the excess.
My employer added my bonus to my regular paycheck. Is the math different?
Possibly. Employers can use the aggregate method instead: they add the bonus to your regular pay for that period and withhold as if the combined amount were your normal paycheck, which can push that period's withholding into a higher bracket. The annual tax result is identical — only the timing of withholding changes.
How do state taxes work on bonuses?
States set their own supplemental withholding rates — California is 10.23% on bonuses, New York 11.70%, Oregon 8.0%, and several states use no separate rate at all. Nine states have no wage income tax. This calculator covers 14 states plus a manual-rate option for the rest.
Estimates only, not tax or financial advice. Figures reflect the 2026 tax year. Verify important decisions with the IRS or a qualified tax professional.