How to use the bonus tax calculator
- Enter the bonus. Type the bonus before tax, or switch to Take-home I want to find the bonus that leaves a set amount after tax.
- Pick the method. Choose the flat 22% rate or the aggregate method, then enter your regular pay per paycheck and your state.
- Read both results. The calculator shows each tax on the bonus, both IRS methods side by side, and whether the withholding is more or less than the tax the bonus adds at tax time.
What is a bonus tax calculator?
A bonus tax calculator is a tool that shows how much of a bonus is left after the taxes taken from it. The IRS calls a bonus a supplemental wage, and employers withhold federal income tax from it by one of two methods, plus Social Security, Medicare and any state tax.
On a $5,000 bonus with the flat 22% method and no state income tax, $1,100.00 goes to federal income tax and $382.50 to Social Security and Medicare, which leaves $3,517.50.
Features
- The flat 22% method and the aggregate method side by side
- The 37% rate on bonuses above $1,000,000 in a year
- Social Security up to the $184,500 wage base, Medicare and Additional Medicare Tax
- State income tax on the bonus for every state in the paycheck calculator, with state payroll deductions such as FAMLI, PFML, SDI and New Jersey TDI and FLI
- A tax-time estimate: whether the withholding is more or less than the tax the bonus adds
- Gross-up: the bonus to pay so that a set amount is left after tax
- A PDF report of your inputs and every result line, to save or share on WhatsApp
How bonuses are taxed in 2026
| Tax | Rate on the bonus | Rule |
|---|---|---|
| Federal income tax, flat method | 22% | Publication 15, section 7: bonus paid separately from regular wages |
| Federal income tax, aggregate method | Your Form W-4 rate | Bonus added to a regular paycheck and withheld as one payment |
| Federal income tax above $1,000,000 | 37% | Required on the part of the year's bonuses above the limit, whatever the Form W-4 says |
| Social Security | 6.2% up to $184,500 of wages in the year | Same as regular pay |
| Medicare | 1.45%, plus 0.9% above $200,000 | Same as regular pay |
| State income tax | Depends on the state | Most states add the bonus to regular pay; some allow a flat rate |
The IRS says that whichever method is used, supplemental wages are subject to Social Security and Medicare. That 7.65% comes off every bonus until the year's wages pass the Social Security wage base.
The 22% flat method
When a bonus is paid separately from regular wages and income tax was withheld from regular wages this year or last year, the employer may withhold a flat 22%. No other percentage is allowed, and the Form W-4 is not used.
Example: a $1,000 bonus has $220.00 of federal income tax, $62.00 of Social Security and $14.50 of Medicare withheld, so $703.50 is paid out in a state with no income tax.
The aggregate method
Under the aggregate method the employer adds the bonus to the regular wages of the pay period, works out withholding on the total as if it were one paycheck, and subtracts the tax already withheld (or to be withheld) from the regular wages. If no income tax was withheld from regular wages this year or last year, this method is required.
- Regular pay of $2,500 every two weeks, single, standard Form W-4: $216.15 withheld.
- Regular pay plus a $5,000 bonus, as one $7,500 paycheck: $1,366.69 withheld.
- Withholding on the bonus: $1,366.69 − $216.15 = $1,150.54.
Because the bonus is treated as if it were paid every two weeks, the aggregate method can withhold more than 22%. Here it takes $1,150.54 against $1,100.00 with the flat rate.
Bonuses over $1,000,000
Once an employee's supplemental wages for the calendar year pass $1,000,000, the excess is withheld at 37%, the top income tax rate, without regard to Form W-4. Payments from all businesses under common control count together.
Example: an employee already paid $800,000 in bonuses this year receives another $500,000. The first $200,000 is withheld at 22% and the other $300,000 at 37%: $155,000 in all.
Is a bonus taxed more than regular pay?
No. A bonus is income like any other on your tax return. Only the withholding is different, and withholding is an advance payment: the real tax is worked out when you file.
Take a single filer paid $65,000 a year who gets a $5,000 bonus. After the $16,100 standard deduction, the bonus falls in the 22% bracket partly and adds $950.00 to the 2026 tax. The flat method withheld $1,100.00, so about $150.00 comes back at tax time.
For someone whose top rate is above 22%, the opposite happens: the flat rate withholds too little and the rest is due with the return. The calculator's "At tax time" panel shows which way it goes for your pay. For the full picture of how bonuses are taxed, with state rates and ways to change the withholding, see our guide.
State tax on a bonus
States that tax wages also tax bonuses. The calculator adds the bonus to a regular paycheck and runs the state's own withholding formula, then subtracts the tax on the regular paycheck alone. Some states let employers use a flat supplemental rate instead:
- Virginia: a flat 5.75% when the bonus is paid separately, with no exemptions.
- Illinois: no separate rate; bonuses are wages withheld at 4.95%.
- Arizona: the same Form A-4 percentage as regular pay.
- Colorado: the bonus goes through the regular withholding worksheet.
- Massachusetts: a blended method in Circular M; the calculator's line is an estimate.
- New York: a flat 11.7% for the state (and 4.25% for New York City residents) when paid separately, or the aggregate method.
- California: a flat 10.23% for bonuses and stock options, or the aggregate method.
- Ohio: a flat 2.75% when the bonus is paid separately.
- Pennsylvania: the same flat 3.07% as regular pay.
- New Jersey: no flat rate; a bonus paid separately is withheld with no allowances.
- Texas, Tennessee, Nevada, Florida, Washington: no state income tax on a bonus. Washington still takes PFML and WA Cares from it.
- Local taxes such as Ohio city tax, Pennsylvania earned income tax and New York City tax also apply to bonuses but are not added on this page.
How to gross up a bonus
To give someone a set amount after tax, the bonus has to be larger than that amount. Switch the calculator to Take-home I want: it finds the smallest bonus that leaves the amount after every tax. For $1,000 after tax with the flat method and no state income tax, the bonus is $1,421.46, because 22% plus 7.65% comes off.
What the calculator includes
- Tax year: 2026, with the IRS supplemental wage rules in Publication 15 and the rate tables in Revenue Procedure 2025-32.
- Bonus: up to $10,000,000, paid as gross or worked back from a take-home amount.
- Federal: both withholding methods, the $1 million rule, Social Security, Medicare and Additional Medicare Tax.
- State: the states in the paycheck calculator, by the aggregate approach; city taxes are not included.
- Not included: 401(k) contributions taken from the bonus, and tax credits in the tax-time estimate.
Is it private?
Yes. The calculation runs in your browser. Your bonus, your pay and your result are not sent to a server and are not saved.
Tips for an accurate estimate
- Ask payroll which method they use. A bonus paid on its own is usually withheld at the flat rate; one added to a paycheck usually goes through the aggregate method.
- Fill in the wages paid so far late in the year. Social Security stops at the wage base, which can leave more of a December bonus.
- Look at the At tax time panel before spending the bonus. If too little was withheld, set some aside or add extra withholding on Form W-4.
- If your 401(k) takes a percentage of every paycheck, it may take part of the bonus too. Take that off the result yourself.
- To give a gift of an exact amount after tax, use Take-home I want instead of guessing the gross.
Related calculators
Frequently asked questions
- How much tax do you pay on a $1,000 bonus?
- With the flat method and no state income tax: $220.00 federal income tax, $62.00 Social Security and $14.50 Medicare, $296.50 in all, leaving $703.50. A state income tax comes on top.
- What is the federal bonus tax rate in 2026?
- 22% with the flat method, and 37% on bonuses above $1,000,000 in a year. With the aggregate method the rate depends on your pay and Form W-4.
- Why was so much tax taken from my bonus?
- Usually because the employer used the aggregate method, which treats the bonus as if you earned it every pay period. Social Security, Medicare and state tax also come off. The real tax is settled on your return.
- Will I get my bonus tax back?
- Part of it, if the withholding was more than the tax the bonus adds. At 22%, someone whose top federal rate is 12% or 22% usually gets some back; someone at 24% or more usually owes a little.
- How much is a $5,000 bonus after taxes?
- About $3,517.50 with the flat method in a state with no income tax: $1,100.00 federal income tax and $382.50 Social Security and Medicare. With the aggregate method on $2,500 every two weeks, about $3,466.96.
- Is a bonus taxed at a higher rate than a paycheck?
- No. On the tax return a bonus is ordinary income taxed at the same rates as your salary. Only the amount withheld when it is paid can differ.
Sources
Every rate, bracket and limit this calculator uses comes from the official sources below. The method is shown on this page, so any result can be checked by hand.
- Internal Revenue Service, Publication 15 (2026), section 7, Supplemental Wages. The 22% flat rate, the aggregate method, the 37% rate above $1 million, and Social Security and Medicare on supplemental wages.
- Internal Revenue Service, Publication 15-T (2026), Federal Income Tax Withholding Methods. Worksheet 1A and the 2026 Percentage Method Tables for Automated Payroll Systems: every bracket, rate and the $12,900 and $8,600 amounts on line 1g.
- Internal Revenue Service, Revenue Procedure 2025-32 and IR-2025-103, tax inflation adjustments for tax year 2026. The 2026 standard deduction and income tax rate tables for single, married filing jointly and head of household filers.
- Internal Revenue Service, Topic no. 751, Social Security and Medicare withholding rates. Social Security 6.2%, Medicare 1.45%, and Additional Medicare Tax of 0.9% on wages above $200,000 in a calendar year.
- Social Security Administration, Contribution and Benefit Base. The 2026 Social Security wage base of $184,500.
- Virginia Department of Taxation, Income Tax Withholding Guide for Employers (2614086 Rev. 05/25) and Form VA-4 (Rev. 04/26). The Virginia withholding formula, standard deduction, exemption amounts, brackets, the VA-4 lines, the bonus rate and the worked example.
- Illinois Department of Revenue, Booklet IL-700-T, Illinois Withholding Tax Tables (R-12/25); Form IL-W-4; Publication 130. The 4.95% rate, allowance amounts, the automated payroll method, the worked example and reciprocity.
- Arizona Department of Revenue, Withholding Tax: Information for Employers; Withholding Calculations; Arizona Form A-4 (2026). The 2.5% rate, the A-4 percentages and default, gross taxable wages, the worksheet example and nonresident rules.
- Colorado Department of Revenue, 2026 Colorado Withholding Worksheet for Employers (DR 1098); 2026 Employee Withholding Certificate (DR 0004); Wage Withholding Tax Guide (January 2026). The 4.40% rate, the withholding worksheet, default allowances and the DR 0004 table.
- Massachusetts Department of Revenue, Circular M: Income Tax Withholding Tables at 5.0% Effective January 1, 2026; Form M-4. The percentage method, exemption amounts, the $2,000 deduction, credits, the surtax threshold and Form M-4.
- New Jersey Division of Taxation, NJ-WT Income Tax Withholding Instructions; Form NJ-W4 (1-21); Technical Bulletin TB-39(R). The New Jersey percentage method, rate tables A to E, the $1,000 allowance, Form NJ-W4 and the treatment of 401(k) and cafeteria-plan deductions.
- Ohio Department of Taxation, Employer Withholding Taxes, Percentage Method (Effective August 1, 2026); Form IT 4 (Rev. 01/24); School District Income Tax FAQ. Ohio withholding rates, the $650 exemption, Form IT 4, school district withholding and the supplemental rate.
- Pennsylvania Department of Revenue, REV-415 Employer Withholding Information Guide (01-23); REV-419; PIT Guide, Gross Compensation. The 3.07% rate, the one-step method, Form REV-419, reciprocity and the treatment of retirement and cafeteria-plan deductions.
- New York State Department of Taxation and Finance, NYS-50-T-NYS, NYS-50-T-NYC and NYS-50-T-Y (1/26); Form IT-2104 (2026) and instructions. The exact calculation method, tables B and C, the annual schedules, Method III, New York City and Yonkers withholding, and Form IT-2104.
- California Employment Development Department, 2026 California Employer's Guide (DE 44); California Withholding Schedules for 2026, Method B; Form DE 4; DE 231TP. Method B, the low-income exemption, standard deductions, rate tables, the allowance credit, Form DE 4, SDI and taxable wages.