Bonus tax calculator 2026
See what lands in your account from a bonus after federal withholding, Social Security, and Medicare, under both methods employers actually use.
| Federal withholding (22% flat) | −$1,100.00 |
| Social Security (6.2%) | −$310.00 |
| Medicare | −$72.50 |
| Total withheld | −$1,482.50 (29.6%) |
Under the other method (aggregate) federal withholding would be $1,164.00 instead of $1,100.00. Withholding is a prepayment, not your final tax: the difference settles when you file.
How bonus withholding really works in 2026
The IRS calls bonuses "supplemental wages" and gives employers two ways to withhold federal income tax on them (IRS Publication 15-T). Which method your employer uses usually depends on how the bonus is paid, not on anything you choose.
The percentage method (flat 22%) applies when the bonus is identified separately from regular wages, most commonly a separate check or a separately coded payroll line. Federal withholding is a flat 22% on supplemental wages up to $1 million in a year, and 37% on anything above that. Most bonuses in the US are withheld this way because it's simple for payroll.
The aggregate method applies when the bonus is lumped into a regular paycheck. Payroll withholds as if that combined, larger paycheck were your pay every period, then subtracts the withholding your normal wages would have produced. Because the math treats a one-time bonus like a permanent raise, it usually withholds more than the flat method, especially for large bonuses against modest salaries. The calculator above shows both numbers so you can see the gap before the check arrives.
Withholding is not your tax
Whichever method your employer uses only changes the timing, not what you ultimately owe. When you file, the bonus is just ordinary income taxed by your bracket. If the flat 22% under-withheld (your marginal rate is higher), you'll owe the difference; if the aggregate method over-withheld, the excess returns as a refund. For where your overall rate actually lands, run your salary plus bonus through your state paycheck calculator, and see how bonuses are really taxed for the full explanation with worked examples.
What this calculator assumes
Estimates use the 2026 federal brackets and standard deduction from IRS Rev. Proc. 2025-32 and the 2026 Social Security wage base of $184,500. The Social Security line assumes your salary accrues before the bonus when checking the wage base, and the aggregate method annualizes using the percentage-method tables rather than the wage-bracket tables, which is a close approximation for most pay levels. State supplemental rates vary (many states use a flat supplemental rate; some tax bonuses as regular wages), so enter your state's rate if you want state withholding included. This is a planning estimate, not tax advice.
Frequently asked questions
How much tax is taken out of a bonus?
Most employers withhold a flat 22% federal on bonuses paid as a separate check, plus 6.2% Social Security (until you hit the annual wage base) and 1.45% Medicare, plus any state withholding. A typical total is 30 to 40 percent withheld, but withholding is a prepayment, not your final tax.
Are bonuses really taxed at 40%?
No. Bonuses are taxed as ordinary income when you file. The 40% feeling comes from withholding: 22% federal plus FICA plus state can pass 30%, and the aggregate method can withhold even more. If too much was withheld, the difference comes back in your refund.
What is the difference between the percentage and aggregate methods?
The percentage method withholds a flat 22% federal on the bonus (37% on amounts above $1 million in a year). The aggregate method adds the bonus to a regular paycheck and withholds as if you earned that combined amount every period, which usually over-withholds for one-time bonuses.
Do bonuses count toward Social Security and Medicare?
Yes. Bonuses are wages for FICA: 6.2% Social Security applies until your year-to-date wages reach the 2026 wage base of $184,500, and 1.45% Medicare applies to every dollar, plus 0.9% additional Medicare above $200,000 ($250,000 married filing jointly).