Bonus Tax Calculator 2026
Calculate take-home pay on a bonus using the IRS percentage method (22% flat, 37% over $1M) or aggregate method, plus FICA and state tax.
Bonus Tax Calculator 2026
Bonus Amount
Gross bonus before any taxes come out.
Withholding Method
Your employer picks this, not you. Flat is a single 22% rate (37% over $1M). Aggregate uses your W-4 to estimate withholding on a combined paycheck.
Annual Regular Salary
The aggregate method uses this to annualize a combined paycheck, for federal and state withholding. Under the flat method, only a state with no flat bonus rate uses it.
Pay Frequency
Filing Status
State
Under the flat method, states with a flat bonus rate use their 2026 rate. Under the aggregate method, and in states without a flat rate, the bonus is withheld as regular wages, which the calculator estimates from your salary, pay frequency and the state's tax brackets.
Year-to-Date Wages
Wages paid this year before this bonus. We use this to apply the 2026 Social Security cap ($184,500) and the $200,000 Additional Medicare withholding threshold.
Estimates for 2026 based on IRS Pub. 15 / 15-T and each state's 2026 rates. Local income taxes are not included. This is not tax advice.
Tax47
Tax Calculator USA
See Your Whole Federal Tax Picture
Tax47 handles federal income tax, bonuses, capital gains, deductions, and refund estimates in one app.
Free · No sign-up needed
Why Your Bonus Looks Smaller Than You Expected
There's a gap between what gets withheld from your bonus today and what you actually owe at filing time. Say you land a $5,000 bonus. The flat method takes 22% off the top, so $1,100 goes to federal withholding before you see a dime. But if your marginal bracket is really 12%, your actual federal tax on that bonus is $600. The other $500 comes back as a refund when you file.
That's why a bonus can feel like a raw deal in the moment and a nice surprise next April. The IRS didn't take more from you, they just took it sooner.
Percentage Method vs Aggregate Method
Your employer picks which method to use, not you. IRS Publication 15 §7 allows either approach for supplemental wages.
The percentage method (also called the flat method) applies a single 22% federal rate to the bonus, no matter what your normal tax bracket is. Once any portion of a bonus crosses $1 million in a calendar year, the rate jumps to 37%, and that part isn't optional.
The aggregate method adds the bonus to your most recent regular paycheck, annualizes the combined amount, looks up the tax from your W-4, and withholds the difference. It tracks closer to your actual liability if you're in the 22%+ bracket, and can over-withhold if you're in a lower one.
High earners usually pay less in the moment with the flat 22% method. Lower earners usually do better with aggregate. Either way, the total tax owed at year-end is the same.
FICA and the 2026 Wage Caps
Bonuses are wages for FICA purposes. Social Security (6.2%), Medicare (1.45%), and the extra 0.9% Additional Medicare all apply. FICA is a flat percentage, so the flat vs aggregate choice doesn't change anything here.
Two thresholds matter for 2026:
- Social Security wage base: $184,500. Once your year-to-date wages cross this amount, no more 6.2% Social Security tax is withheld. A late-year bonus paid on top of a $185K salary pays no SS tax at all.
- Additional Medicare 0.9% threshold: $200,000 single or head of household, $250,000 married filing jointly, $125,000 married filing separately. Employers must start withholding the extra 0.9% once you cross $200K with that employer, regardless of filing status.
State Bonus Tax: Why Your State Matters
States fall into three categories:
- No income tax (9 states): Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Your bonus pays zero state tax.
- A flat bonus rate (26 states): Alabama (5%), Arkansas (3.7%), California (10.23%), Georgia (4.99%), Idaho (5.3%), Illinois (4.95%), Indiana (2.95%), Iowa (3.8%), Kansas (5%), Maine (5%), Maryland (6.5%), Massachusetts (5%), Michigan (4.25%), Minnesota (6.25%), Missouri (4.7%), Montana (5%), Nebraska (3.5%), New Mexico (5.9%), New York (11.7%), North Carolina (4.09%), North Dakota (1.5%), Ohio (2.75%), Oklahoma (4.5%), Oregon (8%), Rhode Island (5.99%), and Virginia (5.75%). These are each state's flat withholding rate for supplemental wages in 2026, and under the flat method the calculator multiplies your bonus by it. Under the aggregate method it withholds these states on regular wages instead, the way the next group works. Several of these states allow the flat rate only on a bonus paid separately from your regular pay.
- No flat bonus rate (15 states and DC): Arizona, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Kentucky, Louisiana, Mississippi, New Jersey, Pennsylvania, South Carolina, Utah, Vermont, West Virginia, and Wisconsin. These states withhold on a bonus as regular wages under either method. The calculator adds the bonus to one regular paycheck, annualizes it, and withholds the state tax on that total less the tax on your salary alone, using the state's brackets, deduction and exemption.
2026 Federal Tax Brackets (what you owe)
These are the brackets your 2026 return uses, so they set the tax you finally owe on the bonus. Aggregate withholding doesn't use them directly: the calculator follows the IRS Pub. 15-T annual percentage-method tables, which build in the standard deduction. Those tables have no married-filing-separately schedule, so the calculator withholds for MFS on the single table, as Form W-4 does, even though the MFS brackets below reach 37% sooner.
| Rate | Single / MFS | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 | $17,701 – $67,450 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 | $67,451 – $105,700 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 | $105,701 – $201,750 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 | $201,751 – $256,200 |
| 35% | $256,226 – $640,600 (MFS caps at $384,350) | $512,451 – $768,700 | $256,201 – $640,600 |
| 37% | Over $640,600 (MFS: $384,350) | Over $768,700 | Over $640,600 |
2026 standard deductions: $16,100 single or MFS, $32,200 MFJ, $24,150 HoH. Source: IRS Rev. Proc. 2025-32 (IR-2025-103); P.L. 119-21 made the TCJA brackets permanent.
Bonus Examples: Flat 22% Method, No State Tax
Every row uses the flat 22% federal method, $0 year-to-date wages at bonus time and no state tax, so your salary, pay frequency and filing status don't change these figures. Pick Aggregate in the calculator above to see that method for your own salary.
| Bonus | Flat 22% Federal | Social Security | Medicare | Total (flat) | Net (flat) |
|---|---|---|---|---|---|
| $500 | $110.00 | $31.00 | $7.25 | $148.25 | $351.75 |
| $1,000 | $220.00 | $62.00 | $14.50 | $296.50 | $703.50 |
| $2,500 | $550.00 | $155.00 | $36.25 | $741.25 | $1,758.75 |
| $5,000 | $1,100.00 | $310.00 | $72.50 | $1,482.50 | $3,517.50 |
| $7,500 | $1,650.00 | $465.00 | $108.75 | $2,223.75 | $5,276.25 |
| $10,000 | $2,200.00 | $620.00 | $145.00 | $2,965.00 | $7,035.00 |
| $15,000 | $3,300.00 | $930.00 | $217.50 | $4,447.50 | $10,552.50 |
| $25,000 | $5,500.00 | $1,550.00 | $362.50 | $7,412.50 | $17,587.50 |
| $50,000 | $11,000.00 | $3,100.00 | $725.00 | $14,825.00 | $35,175.00 |
| $100,000 | $22,000.00 | $6,200.00 | $1,450.00 | $29,650.00 | $70,350.00 |
Important Limitations
This calculator uses a simplified version of the aggregate method. It does not model W-4 Step 2 (multiple jobs), Step 3 (dependents), or Step 4 (other adjustments). When the bonus is withheld as regular wages (under the aggregate method, or in a state with no flat bonus rate), state withholding is estimated from the state's income tax brackets, not its withholding tables or your state W-4. Local income taxes, such as Maryland and Indiana county taxes or New York City tax, are not included. Your actual paycheck may differ depending on your employer's payroll software and your specific W-4 entries. For a personalized estimate, talk to your employer or a tax professional.
For related calculations, try the Tax Bracket Calculator to see what bracket your bonus pushes you into, the Social Security Tax Calculator for the $184,500 cap math, or the Estimated Quarterly Tax Calculator to adjust quarterly payments after a big bonus.
Frequently Asked Questions
Common questions about bonus tax calculator 2026
How is my bonus taxed in 2026?
Bonuses count as supplemental wages. Employers withhold federal tax using either the flat 22% percentage method or the aggregate method, plus 6.2% Social Security (up to the $184,500 cap), 1.45% Medicare, and any state tax.
Why was 22% withheld from my bonus when my tax bracket is lower?
The 22% flat rate is a withholding rule, not your actual tax. If your marginal rate is 12%, the difference typically comes back as a refund when you file your return.
What is the aggregate method for bonus withholding?
Your employer adds the bonus to your regular paycheck, annualizes the total, looks up the tax under your W-4, and withholds the difference. It usually tracks closer to your actual tax liability than the flat 22%.
What happens if my bonus is over $1 million?
Federal law requires 37% withholding on the portion of supplemental wages above $1M per employee per calendar year (IRS Pub. 15 §7). The 22% rate only applies to the first $1M.
Do bonuses count toward the Social Security wage base?
Yes. The 2026 wage base is $184,500. Once your year-to-date wages exceed it, no additional 6.2% Social Security tax is withheld on the rest of the year's pay, bonuses included.
Will my bonus trigger the 0.9% Additional Medicare Tax?
It might. The 0.9% applies to wages above $200,000 (single or head of household), $250,000 (married filing jointly), or $125,000 (married filing separately). Your employer must withhold it once you cross $200K from that employer.
Can I reduce the tax on my bonus?
A few options: contribute extra to a 401(k) or HSA directly from the bonus check if your plan allows it, or ask payroll whether you can reclassify the bonus into a separate pay period. Your total tax owed at year-end doesn't change, but timing and take-home can shift.
Is the bonus tax rate different in 2026 because of the One Big Beautiful Bill Act?
No. P.L. 119-21 made the TCJA brackets permanent, so the supplemental wage rate stays at 22% (37% on the portion over $1M) for 2026 and beyond.