Free Tax Tool

Bonus Tax Calculator

See how much tax is taken out of your 2026 bonus, what you take home, and whether the 22% withholding means a refund or a balance due when you file.

$

Gross bonus before any taxes

$

Your regular taxable wages for the year

$

Used for the Social Security wage base and the $200,000 Medicare threshold

Optional. Approximated with the state's top rate.

%

Optional. Lowers income tax, not Social Security or Medicare.

2026 bonus withholding at payout

Estimated bonus take-home pay

$7,035.00

Gross bonus
$10,000.00
Federal withholding (22%)
$2,200.00
Social Security (6.2%)
$620.00
Medicare (1.45%)
$145.00
Total withheld
$2,965.00
Withheld as % of bonus
29.65%

Uses the IRS flat-rate method for supplemental wages: 22% federal, 37% on supplemental wages over $1 million in a year (assumes no earlier supplemental wages this year). State withholding is approximated with the state's top rate; actual state supplemental rates vary.

2026 actual federal tax on the bonus

You will likely get back about

$650.00

Federal tax withheld (flat rate)
$2,200.00
Actual federal income tax on bonus
$1,550.00
Effective federal rate on bonus
15.50%
Your marginal tax bracket
22%
Over-withheld (refund)
$650.00

Estimate only. Compares the flat withholding to the extra federal income tax the bonus adds on top of your salary after the standard deduction. Ignores credits, itemized deductions, other income, and how accurately your regular paychecks are withheld.

How tax on a bonus is calculated

There are two separate numbers to understand: what your employer withholds from the bonus check, and the tax you actually owe on it when you file your return.

  1. Federal income tax withholding: a flat 22% of the bonus (37% on supplemental wages over $1 million in the year). Pre-tax 401(k) deferrals come off first.
  2. Social Security: 6.2% of the bonus, but only until your wages for the year reach the $184,500 wage base.
  3. Medicare: 1.45% of the full bonus, plus 0.9% on any part of your year-to-date wages above $200,000.
  4. Actual tax at filing: the federal income tax on your salary plus the bonus, minus the tax on your salary alone. If that is less than what was withheld, the difference shows up in your refund.

Example: a single filer earning $60,000 gets a $10,000 bonus after $45,000 of wages so far this year. The employer withholds $2,200 federal (22%), $620 Social Security, and $145 Medicare, so the take-home bonus is $7,035. At filing, taxable income goes from $43,900 to $53,900 after the $16,100 standard deduction. The first $6,500 of the bonus is taxed at 12% and the remaining $3,500 at 22%, for $1,550 of actual tax. That means about $650 comes back as part of the refund.

Frequently asked questions

Why are bonuses taxed so high?

Bonuses usually are not taxed more than regular pay, they are just withheld differently. Most employers withhold a flat 22% for federal income tax, plus 6.2% Social Security, 1.45% Medicare, and any state tax. Together that often takes 30% or more out of the check, which feels high compared with your normal paycheck.

Is the bonus tax rate 22% or 40%?

The federal supplemental withholding rate is 22% for bonuses up to $1 million in a year, and 37% on supplemental wages above $1 million. There is no 40% bonus tax. The 40% figure people see is usually the total of federal withholding, FICA, and state withholding taken from the bonus check.

Are bonuses taxed differently than regular pay?

No. A bonus is ordinary wage income and is taxed at the same brackets as your salary when you file. Only the withholding method differs. Employers can use the flat 22% percentage method, or the aggregate method, which adds the bonus to a regular paycheck and withholds as if you earned that much every pay period. The aggregate method can withhold even more from a large bonus.

Will I get bonus tax back at tax time?

Maybe. If your top federal bracket is 10% or 12%, the 22% withheld is more than the tax the bonus actually adds, so you will likely get the difference back as part of your refund. If you are in the 24% bracket or higher, 22% is too little and you may owe more. This calculator estimates which side you land on.

How can I reduce the tax on my bonus?

Ask whether you can defer part of the bonus into your 401(k) as a pre-tax contribution, which lowers federal and most state income tax (but not Social Security or Medicare). Contributing to a Health Savings Account through payroll can also avoid income tax and, through a cafeteria plan, FICA. Timing a bonus into a lower-income year can help too.

How are bonuses over $1 million taxed?

Once your supplemental wages from an employer exceed $1 million in a calendar year, the employer must withhold federal income tax at 37% on the excess, regardless of your W-4. Wages over $200,000 for the year also get an extra 0.9% Additional Medicare Tax withheld.

How do states withhold tax on bonuses?

Many states have their own flat supplemental withholding rate for bonuses, while others use the regular withholding tables. States without an income tax, like Texas and Florida, withhold nothing. This calculator approximates state withholding with your state’s top income tax rate, so treat that line as a rough estimate.

Sources

Related tools