Bonus Tax Calculator
Bonuses look great on paper, but taxes take a real bite. Plug in your bonus amount to see what you'll actually pocket after federal, state, and FICA withholding.
Bonus Amount
Annual Salary
Filing Status
State
Pay Frequency
Withholding Method
Estimates only. Not tax or legal advice. Consult a tax professional for accuracy.
Flat vs. Aggregate Comparison
Notes
- Withholding is not the same as your final tax liability. Any over- or under-withholding is reconciled when you file your tax return.
Get the Full Picture on Every Paycheck
The app handles overtime, bonuses, deductions, and taxes for all 50 states, so you always know what to expect on payday.
How Bonus Tax Works in 2026
The IRS treats bonuses as "supplemental wages" (Publication 15, Section 7). That means your employer has to withhold federal income tax, Social Security, Medicare, and any state taxes before you see a dime. There are two federal withholding methods: flat percentage and aggregate.
One thing that trips people up: withholding is not the same as your final tax bill. Your bonus counts as ordinary income when you file your return, and any difference between what was withheld and what you actually owe gets sorted out then. P.L. 119-21 (One Big Beautiful Bill Act) made the 2017 TCJA rate structure permanent, so the seven-bracket system (10%, 12%, 22%, 24%, 32%, 35%, 37%) stays in place for 2026 and beyond.
Flat rate vs. aggregate method
The flat rate method takes a straight 22% for federal income tax on bonuses under $1 million. Anything above $1 million gets withheld at 37%. It's simple, and it doesn't matter what your regular salary is.
The aggregate method works differently. Your employer combines your bonus with one regular pay period, annualizes the total, runs it through the standard tax brackets, then subtracts what they'd withhold on your salary alone. The leftover is what gets withheld from your bonus. If you're in a bracket below 22%, this method tends to withhold more. If you're above 22%, it tends to withhold less.
You don't get to pick which method your employer uses. But knowing how both work makes it easier to estimate what you'll take home.
Worked example: $5,000 bonus on $75,000 salary (single, TX)
With the flat method: Federal = $1,100 (22%), Social Security = $310 (6.2%), Medicare = $72.50 (1.45%). Total withholding = $1,482.50. Net bonus = $3,517.50 (effective rate: 29.65%).
With the aggregate method on biweekly pay: the incremental federal tax on $80,000 vs. $75,000 is also $1,100, so the result is the same. That's because $75,000 already puts you squarely in the 22% bracket. At lower salaries (12% bracket), the aggregate method withholds less. At higher salaries (24%+), the flat method withholds less.
State bonus tax rates
Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you live in one of them, there's no state withholding on your bonus.
Some states set flat supplemental withholding rates (California is 10.23%, New York is 11.70%). Others just apply their regular bracket tables. Depending on your state, this adds anywhere from 0% to over 13% on top of your federal and FICA withholding.
Bonus Tax Withholding by Amount
Here's what withholding looks like at common bonus amounts (single filer, $75,000 salary, Texas, flat method).
| Bonus | Federal (22%) | SS (6.2%) | Medicare (1.45%) | Net Bonus | Eff. Rate |
|---|---|---|---|---|---|
| $1,000 | $220 | $62 | $14.50 | $703.50 | 29.65% |
| $2,500 | $550 | $155 | $36.25 | $1,758.75 | 29.65% |
| $5,000 | $1,100 | $310 | $72.50 | $3,517.50 | 29.65% |
| $10,000 | $2,200 | $620 | $145 | $7,035 | 29.65% |
| $25,000 | $5,500 | $1,550 | $362.50 | $17,587.50 | 29.65% |
| $50,000 | $11,000 | $3,100 | $725 | $35,175 | 29.65% |
| $100,000 | $22,000 | $589 | $1,450 | $75,961 | 24.04% |
Notice the $100,000 row has a lower effective rate. That's because Social Security tax caps at the wage base ($184,500 in 2026). On a $75,000 salary, only $9,500 of a $100,000 bonus is subject to SS tax.
Ways to keep more of your bonus
- Adjust your W-4. If you typically get a big refund, you can lower your withholding allowances to keep more of each paycheck and bonus throughout the year.
- Bump up pre-tax deductions. Putting more into your 401(k) or HSA reduces your taxable income.
- Think about timing. If you're close to the Social Security wage base, a late-year bonus may dodge SS tax entirely.
- Don't confuse withholding with your actual tax bill. If too much was withheld, you get it back as a refund when you file.
- Talk to a tax professional if your situation is complicated. A few hundred dollars in advice can save thousands.
For a full breakdown of your regular paycheck, try our Hourly Paycheck Calculator or Salary to Hourly Calculator.
Frequently Asked Questions
Common questions about bonus taxes and withholding
How are bonuses taxed in 2026?
The IRS considers bonuses "supplemental wages." Your employer withholds federal tax using either the flat 22% rate or the aggregate method (which combines your bonus with regular pay to figure the rate). Social Security (6.2%) and Medicare (1.45%) are withheld either way.
What is the difference between the flat rate and aggregate method for bonus tax?
Flat rate is simple: 22% off the top for bonuses under $1 million. The aggregate method adds your bonus to your regular paycheck, looks up the tax on that combined amount, then subtracts what your regular paycheck alone would owe. If you're in a bracket below 22%, the aggregate method usually withholds more.
Is a bonus taxed at 22% or at my regular tax rate?
For withholding, your employer can use the 22% flat rate. But when you file your return, the bonus is taxed at your marginal rate like any other income. If too much or too little was withheld, it gets squared up on your return.
Why does my bonus seem to be taxed so much?
Add up federal (22%), Social Security (6.2%), Medicare (1.45%), and state taxes, and the total withholding can hit 30-40% or more. It stings. But withholding is not the same as your final tax bill. If too much was taken out, you'll get the difference back as a refund.
What happens if my bonus pushes me into a higher tax bracket?
Only the dollars inside the higher bracket are taxed at the higher rate. The rest of your income stays at the lower rates. So a bonus that bumps you into the 24% bracket doesn't mean 24% on the whole bonus, just on the portion above the bracket threshold.
Do I pay Social Security tax on my bonus?
Yes, unless your year-to-date earnings have already passed the Social Security wage base ($184,500 in 2026). After that, no more SS tax is withheld on any additional pay, including bonuses.
How is the bonus tax calculated for amounts over $1 million?
The first $1 million in supplemental wages is withheld at 22%. Every dollar above $1 million is withheld at 37%.
Which withholding method results in lower taxes on my bonus?
Neither one changes what you actually owe. Both methods land on the same tax bill at year-end. The flat method (22%) tends to withhold less for people in higher brackets, so you get a smaller refund. The aggregate method may over-withhold, which just means a bigger refund later.
Need More Than a Quick Calculation?
The full app tracks your full paycheck all year — overtime, bonuses, deductions, and 50-state taxes built in.