Bonus Tax Calculator
See how much of your bonus actually lands in your account after federal supplemental tax (22% in 2026, 37% above $1M), FICA, and state tax — based on official IRS Publication 15 rates.
How to use this calculator
- Enter your gross bonus amount — what your employer is paying before taxes.
- (Optional) Add your year-to-date wages if you're near $184,500 (Social Security cap) or $200,000 (additional Medicare kicks in). For most people this doesn't change the math.
- (Optional) Add your year-to-date supplemental wages if you've already received over $1M in bonuses or commissions this year.
- Add your state's withholding rate on bonuses if you know it. Leave at 0 in no-state-tax states.
A real example: a $5,000 year-end bonus
Say you get a $5,000 holiday bonus in Texas. Texas has no state income tax, so the federal supplemental rate plus FICA tells the whole story:
| Line | Amount |
|---|---|
| Gross bonus | $5,000.00 |
| Federal supplemental tax (22%) | −$1,100.00 |
| Social Security (6.2%) | −$310.00 |
| Medicare (1.45%) | −$72.50 |
| State tax | $0.00 |
| Net bonus | $3,517.50 |
That's about 30% withheld in total. Add state withholding and it can go higher — California's flat bonus rate of 6.6% would knock another $330 off, bringing the same bonus to roughly $3,187 take-home.
One thing to know: the 22% federal supplemental is withholding, not your final tax bill. If you're in the 12% federal bracket, you'll get the difference back as a refund. If you're in the 32% bracket, you'll likely owe more come April. The withholding just tries to ballpark it.
How bonus tax is calculated
Two specific cases the IRS handles differently:
- Above $1 million in supplemental wages for the year. Anything above $1M cumulative is withheld at 37% instead of 22%. This is in IRS Publication 15 and applies regardless of your W-4. So a $1.2M bonus with no prior supplemental wages this year has the first $1M withheld at 22% ($220,000) and the remaining $200,000 at 37% ($74,000) — total federal $294,000.
- Aggregate method. Some employers use the "aggregate method" instead of the flat 22% — they add the bonus to your regular paycheck and withhold as if it were all one payment. This usually produces higher withholding for high-earners and lower for low-earners. The 22% rate is the most common; this calculator uses it.
What's left of common bonus amounts (no state tax)
| Gross bonus | Federal (22%) | Social Security | Medicare | Net bonus |
|---|---|---|---|---|
| $1,000 | $220.00 | $62.00 | $14.50 | $703.50 |
| $5,000 | $1,100.00 | $310.00 | $72.50 | $3,517.50 |
| $10,000 | $2,200.00 | $620.00 | $145.00 | $7,035.00 |
| $25,000 | $5,500.00 | $1,550.00 | $362.50 | $17,587.50 |
| $50,000 | $11,000.00 | $3,100.00 | $725.00 | $35,175.00 |
Assumes year-to-date wages under $184,500 (full Social Security) and under $200,000 (no additional Medicare). State tax is on top of these figures.
Tips on bonus tax
- 22% withheld isn't the same as 22% taxed. The supplemental rate is the IRS's flat-withholding shortcut. Your actual tax is settled when you file. If your bracket is below 22% you'll get a refund of the overage; if above, you'll owe more.
- Defer the bonus into a 401(k) if you can. Some employers let you direct part of a bonus into your traditional 401(k). That money goes in pre-tax (no federal income tax, no state in most states) — though Social Security and Medicare still apply. It's the single most effective way to reduce bonus tax.
- HSAs reduce both federal AND FICA. If you're not yet at the annual HSA contribution limit, routing some bonus money there reduces federal tax, state tax in most states, AND Social Security/Medicare — the rare triple win.
- Watch the Social Security cap. If your YTD wages plus the bonus push you over $184,500, the over-cap portion isn't subject to Social Security tax (6.2%). On a $50k bonus when you're already near the cap, that can be $3,000+ in unexpected savings.
- Bonus timing matters near year-end. If a December bonus would push you into a higher bracket, asking to receive it in January instead can save real money — especially if your income is dropping next year.
Frequently asked questions
How are bonuses taxed in 2026?
Federal bonuses are typically withheld at a flat 22% supplemental rate (37% on the portion above $1 million cumulative for the year), per IRS Publication 15. FICA still applies — 6.2% Social Security up to the wage base and 1.45% Medicare on all wages. State withholding varies by state and is often a flat rate on the bonus.
How much will I take home on a $5,000 bonus?
On a $5,000 bonus with no state tax, expect about $3,517.50 take-home. That's $1,100 federal supplemental (22%), $310 Social Security, and $72.50 Medicare. State tax brings it lower in states that withhold on bonuses.
Why is so much taken out of my bonus?
It feels like a lot because the flat 22% supplemental withholding rate is higher than the marginal rate most people pay on regular wages. The good news: if your actual tax bracket is lower than 22%, you'll get the difference back as a refund when you file. If your bracket is higher than 22%, you'll owe — so withholding more is often actually wise for high earners.
Can I lower the tax on my bonus?
You can't legally avoid the 22% federal withholding, but a few moves help: routing the bonus into a traditional 401(k) (if your employer allows it) defers federal tax entirely; contributing to an HSA reduces both federal tax and FICA; and timing — splitting the bonus across two tax years — can drop you into a lower bracket if you're near a threshold.