Bonus Tax Calculator 2026
In 2026, employers withhold federal income tax on a bonus at a flat 22% (37% on supplemental wages over $1,000,000), plus 7.65% for Social Security and Medicare. A $5,000 bonus under the flat method has $1,100.00 federal and $382.50 FICA withheld, leaving $3,517.50 before state tax.
Uses 2026 IRS tables, verified . Federal and FICA only; state tax coming soon.
Flat 22% method
Take-home $3,517.50
| Bonus | $5,000.00 |
|---|---|
| Federal income tax | -$1,100.00 |
| Social Security | -$310.00 |
| Medicare | -$72.50 |
Taxes withheld: 29.65% of the bonus
Show the math
| Bonus (gross) Before any withholding | $5,000.00 |
| Federal flat-rate withholding 22% × $5,000.00 | $1,100.00 |
| Social Security 6.2% × $5,000.00 | $310.00 |
| Medicare 1.45% × $5,000.00 | $72.50 |
| Take-home bonus $5,000.00 − $1,482.50 taxes | $3,517.50 |
Aggregate method
Take-home $3,466.96
| Bonus | $5,000.00 |
|---|---|
| Federal income tax | -$1,150.54 |
| Social Security | -$310.00 |
| Medicare | -$72.50 |
Taxes withheld: 30.66% of the bonus
Show the math
| Bonus (gross) Before any withholding | $5,000.00 |
| Withholding on regular pay plus bonus as one paycheck W-4 percentage method on $2,500.00 + $5,000.00 = $7,500.00 | $1,366.69 |
| Minus withholding on regular pay alone W-4 percentage method on $2,500.00 | -$216.15 |
| Federal aggregate withholding on the bonus $1,366.69 − $216.15 | $1,150.54 |
| Social Security 6.2% × $5,000.00 | $310.00 |
| Medicare 1.45% × $5,000.00 | $72.50 |
| Take-home bonus $5,000.00 − $1,533.04 taxes | $3,466.96 |
These are withholding estimates for federal income tax, Social Security and Medicare. State and local taxes are not included yet. Your final tax bill is settled when you file your return and can differ from what is withheld.
How is a bonus taxed?
A bonus is a supplemental wage. Your employer withholds federal income tax on it using one of two IRS methods, and withholds Social Security (6.2%) and Medicare (1.45%) the same way as regular pay.
Flat rate method
Federal income tax withholding is 22% of the bonus, no matter what your W-4 says. Supplemental wages above $1,000,000 for the year are withheld at 37%.
Aggregate method
The bonus is added to your regular pay for the period and withholding is calculated on the total using your W-4 and the IRS percentage method tables. The tax already withheld from regular pay is subtracted, and the rest comes out of the bonus.
Worked example
A single employee paid every two weeks earns $2,500.00 per paycheck, has been paid $50,000 so far this year, and receives a $5,000 bonus with a standard 2026 Form W-4.
| Flat 22% | Aggregate | |
|---|---|---|
| Federal income tax | $1,100.00 | $1,150.54 |
| Social Security | $310.00 | $310.00 |
| Medicare | $72.50 | $72.50 |
| Take-home bonus | $3,517.50 | $3,466.96 |
The aggregate method withholds $50.54 more federal income tax than the flat method ($1,150.54 versus $1,100.00), because the combined paycheck is annualized and run through the W-4 brackets.
Aggregate method, step by step
| Bonus (gross) Before any withholding | $5,000.00 |
| Withholding on regular pay plus bonus as one paycheck W-4 percentage method on $2,500.00 + $5,000.00 = $7,500.00 | $1,366.69 |
| Minus withholding on regular pay alone W-4 percentage method on $2,500.00 | -$216.15 |
| Federal aggregate withholding on the bonus $1,366.69 − $216.15 | $1,150.54 |
| Social Security 6.2% × $5,000.00 | $310.00 |
| Medicare 1.45% × $5,000.00 | $72.50 |
| Take-home bonus $5,000.00 − $1,533.04 taxes | $3,466.96 |
Frequently asked questions
Why is my bonus taxed at 22%?
22% is the IRS flat withholding rate for supplemental wages such as bonuses in 2026. It is a withholding rate, not a separate tax. When you file your return, the bonus is taxed as ordinary income at your normal rates, so you may get some of it back or owe more.
Are bonuses taxed more than regular pay?
No. A bonus is ordinary income and is taxed at the same rates as salary on your tax return. Only the withholding method differs, which is why a bonus paycheck can look heavily taxed. Any over-withholding comes back as a refund when you file.
What is the aggregate method?
Your employer adds the bonus to your regular pay for the period, calculates withholding on the total as if it were one paycheck using your W-4, then subtracts the tax already withheld from your regular pay. The difference is withheld from the bonus. It often withholds more than the flat rate when the combined paycheck lands in a higher bracket.
Which method will my employer use?
Your employer chooses. The flat 22% method is only allowed if income tax was withheld from your regular wages this year or last year; otherwise the aggregate method is required. If the bonus is paid in the same check as regular pay without being listed separately, it is withheld as one regular paycheck.
What happens to bonuses over $1,000,000?
Supplemental wages above $1,000,000 in a calendar year must be withheld at 37%, regardless of your W-4 or the method your employer uses for the rest.
Do bonuses pay Social Security and Medicare?
Yes. Bonuses are subject to Social Security at 6.2% until your wages for the year reach the $184,500 wage base, and to Medicare at 1.45% with no limit. An extra 0.9% Additional Medicare Tax is withheld on wages above $200,000 for the year.
Does putting my bonus in a 401(k) reduce the tax?
A traditional 401(k) deferral lowers federal income tax withholding but not Social Security or Medicare. For example, deferring 10% of a $10,000 bonus under the flat method withholds $1,980.00 in federal income tax instead of $2,200.00, while FICA stays $765.00.
Sources
- IRS Publication 15 (2026), (Circular E), Employer's Tax Guide, section 7 Supplemental Wages, verified
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods, verified
- IRS Publication 15 (2026), (Circular E), Employer's Tax Guide, verified
See the methodology for how each figure is calculated and checked.