Bonus tax calculator

How much tax is withheld from a bonus?

When an employer uses the flat-rate method, federal income tax is withheld at 22% of the bonus in 2026 (IRS Publication 15). Social Security (6.2%) and Medicare (1.45%) are withheld as on regular pay. State tax is extra.

Example

A $10,000 bonus: $2,200 federal, $620 Social Security and $145 Medicare — $7,035 before any state tax.

What if my bonuses are large?

Supplemental wages above $1 million in a year must be withheld at 37%, regardless of your W-4.

Why enter my pay so far this year?

Social Security stops at the 2026 wage base of $184,500, and an extra 0.9% Medicare is withheld on pay above $200,000 in the year. Your year-to-date pay decides whether these apply.

Is withholding my final tax?

No — it is a prepayment. Your actual tax on the bonus is settled on your return with the rest of your income, so you may owe more or get some back.

Is a bonus taxed at a higher rate than regular pay?

Not in the end. Withholding on a bonus can be at a different rate than on your regular check, but your actual tax is figured on your return from your total income at the usual rates. If too much was withheld, you get it back as a refund; if too little, you owe the difference.

What if my bonus is paid together with my regular pay?

The IRS describes two cases. If the bonus is combined with regular wages, the employer withholds as if the total were one regular payment. If it is identified separately, the employer may use the flat 22% rate. Which one applies depends on how your employer pays the bonus.

Which year is a bonus taxed in?

The year you receive it, not the year you earned it. A bonus for 2025 that is paid in January 2026 is 2026 pay for income tax and for the Social Security and Medicare limits.

How the calculation works

The calculator withholds three amounts from the bonus. Federal income tax is 22% of the bonus, except for the part of your supplemental pay in the year that goes above $1 million, which is withheld at 37%. Social Security tax is 6.2% on pay up to the 2026 wage base of $184,500, so the calculator stops it once your pay so far plus the bonus passes that amount. Medicare tax is 1.45% on all of the bonus, with an extra 0.9% on pay above $200,000 in the year. State and local taxes are not included.

Worked examples

For an $8,000 bonus with $60,000 paid so far this year, the federal withholding is $1,760, Social Security $496 and Medicare $116, which leaves $5,628 before state tax.

The Social Security limit changes the result for higher earners. For a $20,000 bonus after $180,000 of pay, only the first $4,500 of the bonus is below the wage base, so Social Security is $279 rather than $1,240. For a $20,000 bonus after $195,000, the part of pay above $200,000 is $15,000, so Medicare is $425: 1.45% of $20,000 plus 0.9% of $15,000. For a $400,000 bonus when $800,000 of supplemental pay has already been paid, the first $200,000 is withheld at 22% and the rest at 37%, so federal withholding is $118,000.

Common mistakes

• Thinking the bonus is taxed at 22% for good. The 22% is only the withholding. The real tax depends on your total income and bracket, so a high earner may owe more and someone in a lower bracket may be refunded.
• Forgetting state tax. Many states also withhold on bonuses, and some use a flat supplemental rate. Check your pay stub.
• Leaving out year-to-date pay. The Social Security cap and extra Medicare tax depend on pay already received this year, so the result is wrong without it.

Sources and related calculators

Withholding rules: IRS Publication 15 (Employer's Tax Guide), section 7 on supplemental wages, with the 22% optional flat rate and the 37% mandatory rate above $1 million. Social Security wage base for 2026: Social Security Administration. Related: paycheck calculator, income tax calculator and salary calculator.

Estimates for planning only — not tax advice. Your employer’s payroll and your tax professional decide. How we check our calculators.