How to use this calculator
- Bonus amount. The gross bonus before anything is taken out.
- Annual salary and pay frequency. Used for the aggregate method and to check your real tax bracket.
- Filing status and state. Your W-4 status and the state where you work.
- Federal method. Choose Flat 22% if the bonus is paid separately (the most common case), or Aggregate if it’s added to a regular paycheck. Your pay stub or HR can tell you which.
- Under More options, enter wages already paid this year (for the Social Security cap and Additional Medicare Tax), bonuses already paid (for the $1 million rule) and any 401(k) percentage taken from the bonus.
The result shows your take-home bonus, each amount withheld, and whether the withholding is likely to be more or less than the tax the bonus really adds.
How bonus withholding works
The IRS treats bonuses, commissions, severance and similar payments as supplemental wages (Publication 15, section 7).
- Flat (percentage) method: 22% federal, no other percentage allowed. It’s available when the bonus is identified separately and income tax was withheld from your regular pay this year or last.
- Aggregate method: bonus + regular pay are withheld as one paycheck, minus the withholding on the regular pay. IRS Publication 15 gives an example: $2,000 monthly pay withheld $65; with a $1,000 bonus added, the combined check is withheld $179, so $114 comes out of the bonus. (The calculator uses the percentage-method formula, which gives $112.50; the IRS example uses the wage bracket tables.)
- Over $1 million: 37% mandatory on the excess.
- FICA: 6.2% Social Security up to $184,500 of wages and 1.45% Medicare, plus 0.9% on wages over $200,000.
Worked examples
$5,000 bonus, $75,000 salary, California, flat method.
- Federal: 22% × $5,000 = $1,100
- Social Security $310 and Medicare $72.50
- California’s bonus rate of 10.23%: $511.50, plus 1.3% State Disability Insurance, $65
- Take-home: $2,941, 41.2% withheld
Same bonus in Texas. No state tax, so the check is $3,517.50. With the aggregate method on a biweekly salary, federal withholding is $1,164 instead of $1,100, for $3,453.50. On a $10,000 bonus the gap widens: the aggregate method withholds $2,796.70 versus $2,200 at the flat rate, because the combined check looks like a $335,000 salary.
Is 22% enough? At $75,000 you’re in the 22% bracket, so the $1,100 withheld matches the roughly $1,100 the bonus adds to your 2026 tax. At $50,000 (the 12% bracket), the bonus adds only about $600, so roughly $500 should come back as a refund.
State bonus withholding rates (2026)
| State | Bonus rate | State | Bonus rate |
|---|---|---|---|
| Alabama | 5% | Montana | 5% |
| Arizona | Your A-4 rate (0.5%–3.5%) | Nebraska | 3.5% |
| Arkansas | 3.7% | New Jersey | Regular tables |
| California | 10.23% (6.6% other supplemental) | New Mexico | 5.9% |
| Colorado | 4.4% | New York | 11.7% (+ NYC/Yonkers) |
| Connecticut | Regular tables | North Carolina | 4.09% |
| Delaware | Regular tables | North Dakota | 1.5% |
| District of Columbia | Regular tables | Ohio | 2.75% |
| Georgia | 4.99% | Oklahoma | 4.5% |
| Hawaii | Regular tables | Oregon | 8% |
| Idaho | 5.3% | Pennsylvania | 3.07% |
| Illinois | 4.95% | Rhode Island | 5.99% |
| Indiana | 2.95% + county | South Carolina | Regular tables |
| Iowa | 3.8% | Utah | 4.45% |
| Kansas | 5% | Vermont | 30% of federal withholding |
| Kentucky | 3.5% | Virginia | 5.75% |
| Louisiana | Regular tables | West Virginia | Regular tables |
| Maine | 5% | Wisconsin | 3.54%–7.65% by salary |
| Maryland | 6.5% + county | Massachusetts | 5% |
| Michigan | 4.25% | Minnesota | 6.25% |
| Mississippi | Regular tables | Missouri | 4.7% |
No state income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. “Regular tables” means the state has no flat bonus rate; the calculator then estimates the extra state tax the bonus adds for the year.
Tips
- Don’t judge your tax by the bonus check. Withholding is an estimate; your bracket decides the real tax. The income tax calculator shows your bracket.
- Send part to your 401(k). It lowers income tax now; the 401(k) calculator shows the long-run value.
- Expecting to owe? If your bracket is above 22%, add a little extra withholding with the W-4 calculator.
- Compare offers on total pay. A signing bonus is a one-time payment; the salary calculator and paycheck calculator show regular take-home pay.
Assumptions & limitations
- 2026 rules: federal supplemental rates from IRS Publication 15 (2026); Social Security wage base $184,500.
- The aggregate method uses Publication 15-T’s percentage method with your filing status and no other W-4 entries, applied to one regular paycheck plus the bonus.
- State rates come from each state’s 2026 employer withholding guide. Where a state has no flat rate, the figure is the extra annual state tax on the bonus, which can differ from your employer’s withholding. City, county and school district taxes aren’t included.
- Several states only allow their flat rate when the bonus is paid separately or when federal withholding uses the flat rate. Georgia’s rate is 4.99% for payments from May 11, 2026.
- The “actual tax” comparison assumes wages are your only income and you take the standard deduction.
Sources
- IRS Publication 15 (2026), section 7: Supplemental wages
- IRS Publication 15-T (2026): Federal Income Tax Withholding Methods
- California EDD, DE 44: California Employer’s Guide (supplemental rates)
- New York State NYS-50-T-NYS (2026): supplemental withholding rate
- Wisconsin Publication W-166: Withholding tax guide
- Vermont GB-1210 (2026): Income tax withholding instructions
- Maryland 2026 withholding guide
- Illinois IL-700-T (2026), Georgia 2026 Employer’s Tax Guide, North Carolina NC-30 (2026), Ohio Adm. Code 5703-7-10, Michigan Form 446 (2026), Pennsylvania REV-415, New Jersey NJ-WT; other states: each revenue department’s 2026 employer withholding guide.
This estimate is for planning only and isn’t tax advice. Your employer’s payroll may differ slightly.
Frequently asked questions
How much is a bonus taxed in 2026?
Most employers withhold a flat 22% federal income tax on bonuses paid separately from regular pay, plus 6.2% Social Security and 1.45% Medicare. Your state may withhold its own flat rate, from 1.5% in North Dakota to 11.7% in New York. On a $5,000 bonus in a state without income tax, that leaves $3,517.50.
Are bonuses taxed more than regular pay?
No. Bonuses are often withheld at a higher rate, but they’re taxed as ordinary wages on your return. If 22% is more than your actual bracket, the extra comes back as a refund; if your bracket is higher, you may owe a little more when you file.
What is the aggregate method?
The employer adds the bonus to a regular paycheck and withholds as if that larger amount were your normal pay, then subtracts what it would have withheld on the regular pay alone. Because the paycheck looks like a much higher salary, withholding is often more than 22%.
What happens with bonuses over $1 million?
Supplemental wages over $1 million paid by one employer in a calendar year must be withheld at 37%, regardless of your Form W-4. The first $1 million can still use 22% or the aggregate method.
Can I lower the tax on my bonus?
You can’t change the withholding method, but you can reduce taxable income. Many 401(k) plans let you defer part of a bonus, which cuts federal and most state income tax on it, though not Social Security and Medicare. Check your plan’s rules.
Does Social Security tax apply to my bonus?
Yes, 6.2% until your total wages for the year reach the $184,500 wage base for 2026, and 1.45% Medicare with no cap. Once your wages from an employer pass $200,000 in the year, it also withholds the 0.9% Additional Medicare Tax.
Updated November 2026. Results are estimates for educational purposes and depend on the inputs you provide.