2026 tax year · updated Oct 10, 2026

Bonus tax calculator

What lands in your account from a bonus, and what the bonus really costs in tax once you file.

Your bonus check

$7,035

from a $10,000 bonus

Federal withholding (22% flat): $2,200
Social Security: $620
Medicare: $145
State tax on the bonus: $0
Local tax: $0

What the bonus really costs

At year end the bonus adds $2,200 federal income tax (your top bracket: 22%). You keep about $7,035.

The 22% federal withholding matches the tax the bonus really adds.

State withholding on bonuses follows each state's own supplemental rate, which can differ from the tax shown here. Estimate for information only.

Withholding is not the final tax

Most employers withhold a flat 22% federal tax from a bonus. Your actual tax on it depends on your bracket, so the 22% can be too much or too little:

$35,000 salary, $5,000 bonus: $1,100 withheld, but the bonus adds only $600 of federal tax. About $500 comes back at tax time.
$80,000 salary, $10,000 bonus: $2,200 withheld and about $2,200 owed, roughly even.
$250,000 salary in California, $30,000 bonus: $6,600 withheld but $9,830 owed, a $3,230 shortfall, plus $3,180 of California tax.

The two withholding methods

Flat rate: 22% of the bonus, available when the employer has withheld tax from your regular pay. Aggregate: the bonus is added to a regular paycheck and taxed as if that bigger amount were your normal pay, which can withhold more or less than the flat rate. Above $1,000,000 of supplemental wages in a year, 37% is mandatory on the excess.

Source: IRS Publication 15 (2026), Supplemental wages. Also see the take-home pay calculator and our methodology.

Frequently asked questions

Why is my bonus taxed so much?

Employers usually withhold a flat 22% federal tax from bonuses, plus 7.65% for Social Security and Medicare and any state tax. That is withholding, not your final tax: if your bracket is below 22%, part of it comes back in your refund.

What is the federal tax rate on bonuses in 2026?

22% under the flat-rate method, and 37% on supplemental wages above $1,000,000 in the year. Employers can instead use the aggregate method, adding the bonus to a regular paycheck and withholding as if it were normal pay.

Is a bonus taxed differently from salary?

No. At year end a bonus is ordinary income, taxed at the same rates as your salary. Only the withholding method differs.

Do bonuses count toward Social Security?

Yes, up to the $184,500 wage base for 2026, counting your salary first. Medicare applies to all of it.

Explainer · PaychecksNo tax on overtime, explained: How the overtime deduction works in 2026: only the premium counts, up to $12,500 ($25,000 joint), paychecks are still taxed, and how much it saves.