Bonus Tax Calculator
Estimate take-home pay on a work bonus using the IRS percentage (flat 22%) method or the aggregate method, with FICA and state tax.
Bonus Tax Calculator
Bonus Amount
Gross supplemental wages, before any withholding.
Withholding Method
Most employers use the percentage method on separately paid bonuses.
Flat 22% federal rate on supplemental wages up to $1,000,000 (37% above).
Regular Gross Per Paycheck
Your normal gross pay for one pay period, used only for the aggregate method.
Filing Status
Used by the aggregate method to look up the right 2026 IRS withholding table.
Pay Frequency
How often you are paid. Used by the aggregate method to annualize.
Year-to-Date Wages
Optional. Used to detect the Social Security wage base ($184,500 in 2026) and the $200,000 Additional Medicare trigger.
State Supplemental Rate
Your state's flat supplemental withholding rate. Leave at 0 for no-income-tax states (AK, FL, NV, NH, SD, TN, TX, WA, WY).
401(k) From Bonus
Percent of the bonus contributed pre-tax. Reduces federal taxable wages but not FICA.
Other Pre-Tax Deductions
Dollar amount of HSA, FSA, or similar deductions taken from the bonus before federal tax.
Estimates only, this is not tax or legal advice. Withholding varies by employer, state, and IRS rules.
Notes & Assumptions
- 2026 Social Security wage base: $184,500 (SSA fact sheet).
- Additional Medicare 0.9% withholding kicks in at $200,000 YTD wages, regardless of filing status.
- Aggregate-method withholding uses 2026 IRS Pub 15-T Worksheet 1A percentage-method tables.
- 401(k) contributions reduce federal taxable wages but not FICA.
- Some HSA contributions made through a Section 125 cafeteria plan are exempt from FICA. This calculator does not model that edge case.
Track Hours, Bonuses, and Take-Home
Timeclock44 logs your hours and pay across jobs so you know what is hitting your bank, not just what is on the offer letter. Get the app to see your real take-home, automatically.
How the IRS Taxes Bonuses in 2026
The IRS classifies bonuses as "supplemental wages" under Publication 15, Section 7. The same withholding rules apply whether the payment is a year-end bonus, a signing bonus, a spot award, or a commission. Employers can use one of two methods: the percentage method (flat rate) or the aggregate method (combined with regular pay).
FICA still applies to bonuses just like any other wages. In 2026, that's 6.2% Social Security up to a wage base of $184,500 and 1.45% Medicare on every dollar. Earnings above $200,000 in a calendar year also trigger an extra 0.9% Additional Medicare withholding at the employer level.
Percentage Method vs. Aggregate Method
The percentage method is the simpler of the two. If the bonus is paid as a separate check, the employer withholds a flat 22% federal tax on the first $1 million in supplemental wages for the year. Anything above $1 million is withheld at 37%. Filing status doesn't change this rate.
The aggregate method applies when the bonus is bundled into a regular paycheck. The employer calculates withholding on the combined paycheck using your W-4 and the 2026 IRS Publication 15-T percentage-method tables, subtracts what would have been withheld on the regular pay alone, and treats the difference as bonus withholding. This often withholds more, especially when the bonus pushes you across a bracket, but your final tax bill is the same. Only the timing changes.
If you want to see how a different hourly mix plays out, the overtime calculator handles the regular-paycheck side and our regular rate of pay calculator handles bonus-adjusted overtime rates.
State Taxes on Bonuses
Most states tax bonuses, but the mechanics vary. Some states publish a flat supplemental rate (California uses 10.23% on bonuses, for example), while others tell employers to use regular withholding tables. A handful of states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) have no state income tax at all, so leave the state field at 0.
For a state with a separate supplemental rate, enter it in the calculator. If your state uses regular tables, this tool is an approximation. Plug in a rate close to your effective state rate and treat the output as a ballpark.
Reducing Withholding on a Bonus
If the 22% rate is parking more cash with the Treasury than you'd like until April, you have a few levers. Contributing part of the bonus to a pre-tax 401(k) or HSA reduces federal taxable wages right away (FICA still applies to the 401(k) portion). Adjusting your W-4 Step 4 to claim other deductions can lower aggregate-method withholding. And checking your year-to-date earnings around the Social Security wage base can flag a bonus that arrives in a "no-SS-tax" zone late in the year.
One catch: less withholding doesn't mean less tax owed. Your true federal liability gets settled when you file, and the bonus is taxed at your real marginal rate either way.
Frequently Asked Questions
Common questions about bonus tax calculator
How are bonuses taxed in 2026?
The IRS treats bonuses as supplemental wages. Employers withhold federal tax using either the percentage method (a flat 22%, or 37% on the portion above $1 million) or the aggregate method, which combines the bonus with your regular paycheck and taxes the lump at your normal W-4 rate. Social Security (6.2%) and Medicare (1.45%) still apply, and most states tax the bonus too.
Why is my bonus taxed at 22%?
Most employers pay bonuses as a separate check and use the IRS flat percentage method, which requires 22% federal withholding on supplemental wages up to $1 million per IRS Publication 15. That 22% is the withholding rate, not your final tax rate.
Is a bonus taxed twice?
No. Withholding is a prepayment, not a separate tax. When you file your return, your bonus is taxed at your actual marginal rate. If 22% was over-withheld for your bracket, you get the difference back as a refund.
What is the difference between the percentage method and the aggregate method?
The percentage method puts a flat 22% federal rate on the bonus. It's simple, and employers use it when the bonus is paid separately. The aggregate method adds the bonus to a regular paycheck and computes withholding on the combined amount using your W-4. Aggregate often withholds more when a bonus pushes you across a bracket, but the actual tax you owe at year-end is the same either way.
How much of a $5,000 bonus do I take home?
At the flat 22% federal rate plus 7.65% FICA, about $1,482 gets withheld federally, leaving roughly $3,518 before any state tax. The calculator above lets you plug in your own numbers and try both methods.
Do I pay Social Security tax on a bonus if I have already hit the wage base?
No. Once your year-to-date wages exceed the 2026 Social Security wage base of $184,500, the 6.2% Social Security tax stops for the rest of the year, including on bonuses. If your YTD wages are below the cap but the bonus pushes you over, only the portion up to $184,500 is taxed.
What is the additional Medicare tax on bonuses?
Employers must withhold an extra 0.9% Medicare tax on wages above $200,000 in a calendar year, regardless of filing status. High earners may owe more (or be refunded) at year-end based on the actual filing-status thresholds in IRS Topic 560.
Can I avoid bonus tax by putting it in my 401(k)?
You can defer federal income tax (and most state income tax) by routing the bonus into a pre-tax 401(k), within annual contribution limits. You still owe Social Security and Medicare tax on the contributed amount. See our /tools/paycheck-calculator/ to model the take-home impact across a full year.