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Bonus Tax Calculator
See how much of your bonus will land in your bank account after withholding, and how much tax you will really owe on it when you file.
How bonuses are taxed
The IRS treats bonuses as supplemental wages. When a bonus is paid separately from your regular pay, most employers use the percentage method: a flat 22% federal withholding (37% on supplemental pay above $1 million). Social Security (6.2%, until your year's pay passes $184,500) and Medicare (1.45%) apply as usual, and your state withholds its own amount.
Withholding is only a prepayment. Your bonus is ordinary income, so the tax you actually owe depends on your total income and bracket. This calculator shows both: what is withheld now, and the extra tax the bonus really adds for the year, using 2026 federal and state rates.
Example: $5,000 bonus on a $75,000 salary in Texas
Federal withholding is $1,100 (22%), Social Security $310 and Medicare $72.50. Texas has no income tax, so the check is $3,517.50. A single filer on $75,000 is already in the 22% bracket, so the bonus really does cost $1,100 of federal tax and there is no refund or bill from it at tax time.
A lower earner in the 12% bracket would have the same $1,100 withheld but owe only about $600, so roughly $500 comes back as part of the tax refund.
Aggregate method
If your bonus is paid in the same check as your regular wages, the employer may instead add it to your pay and withhold as if you earned that much every pay period. That can make withholding look very high on that one check, but it evens out when you file.
Frequently asked questions
Why is my bonus taxed so much?
It usually isn't taxed more, it is withheld differently. Employers typically withhold a flat 22% federal tax on bonuses, plus 7.65% for Social Security and Medicare and any state tax. If 22% is more than your real tax rate, you get the difference back at tax time.
What is the federal bonus tax rate for 2026?
The IRS flat withholding rate for supplemental wages such as bonuses is 22%. Any part of your bonuses above $1 million in a year is withheld at 37%.
How can I keep more of my bonus?
Ask whether you can put some of it into your 401(k); pre-tax contributions are not subject to income tax. Some employers also let you change your W-4 temporarily.