Bonus Tax Calculator 2026
See what is left of a bonus after withholding, under both the flat 22% supplemental method and the aggregate method.
How this is calculated
Your employer does not settle your tax bill once a year. It withholds from every paycheck using the percentage method the IRS publishes in Publication 15-T, and this calculator runs the same steps in the same order.
Gross pay for the period is worked out first. Pre-tax deductions come off next, and this is where most free calculators go wrong: a traditional 401(k) contribution reduces the wages your income tax is figured on, but it does not reduce the wages Social Security and Medicare are figured on. A health premium, HSA or FSA contribution reduces both, because those sit inside a Section 125 cafeteria plan.
What remains is annualised, reduced by the standard deduction for your filing status, and run through the federal bracket table. Dependent credits are subtracted, then the result is divided back down to your pay period and any extra W-4 withholding is added. State tax is calculated separately on its own base with its own deduction and brackets. Post-tax items such as Roth 401(k) and garnishments come off last, and what is left is your net pay.
Two methods, two very different checks
Under the flat method your employer treats the bonus as supplemental wages and withholds a flat 22% federal, plus the state supplemental rate where one exists: 10.23% in California, 11.7% in New York, 3.5% in Ohio, 4.09% in North Carolina. FICA applies on top at 7.65%.
Under the aggregate method the bonus is added to your regular wages for that period and the whole amount is withheld as though you earn that much every period. On a large bonus this over-withholds heavily, sometimes at 32% or more, because payroll believes you just got a very large raise.
Withholding is not the tax
Neither method decides what you owe. A bonus is ordinary income taxed at your marginal rate, and the withholding is only a prepayment. If your marginal rate is 12%, flat 22% withholding means a larger refund. If your marginal rate is 32%, that same 22% leaves you short and you will owe in April.
That second case is the one worth planning for. If a bonus pushes your total income into the 32% or 35% bracket, add extra withholding on your W-4 for the rest of the year, or set the difference aside. Open the advanced section above, set the bonus, and compare the two methods to see what your employer is likely to hold back.
Reducing the tax on a bonus
Two things genuinely work. Deferring part of the bonus into a traditional 401(k) removes it from income tax for the year, though FICA still applies. Directing it into an HSA, if you are eligible and under the annual limit, removes it from both income tax and FICA. Everything else is timing rather than reduction.
2026 tax rates used on this page
| Item | Rate | Limit or threshold |
|---|---|---|
| Social Security (OASDI) | 6.2% | First $184,500 of wages, maximum $11,439 |
| Medicare | 1.45% | No cap |
| Additional Medicare | 0.9% | Wages above $200,000 single, $250,000 joint, $125,000 separate |
| Federal income tax | 10% to 37% | Seven brackets, after the standard deduction |
| Standard deduction | — | $16,100 single, $32,200 joint, $24,150 head of household |
| Federal supplemental rate | 22% | Applied to bonuses under the flat method |
| Dependent credits | — | $2,000 per child under 17, $500 per other dependent |
Sources: IRS Rev. Proc. 2025-32 and the Social Security Administration 2026 announcement. Verified 17 September 2026.
2026 federal brackets
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 |
| 12% | $12,400 to $50,400 | $24,800 to $100,800 |
| 22% | $50,400 to $105,700 | $100,800 to $211,400 |
| 24% | $105,700 to $201,775 | $211,400 to $403,550 |
| 32% | $201,775 to $256,225 | $403,550 to $512,450 |
| 35% | $256,225 to $640,600 | $512,450 to $768,700 |
| 37% | $640,600 and above | $768,700 and above |
Frequently asked questions
How is a bonus taxed?
A bonus is ordinary income taxed at your marginal rate. Employers withhold either at a flat 22% federal supplemental rate plus the state supplemental rate, or by adding the bonus to that period\u2019s wages under the aggregate method. FICA at 7.65% applies either way.
Why was 40% taken out of my bonus?
Almost certainly the aggregate method. Payroll added the bonus to your normal pay for the period and withheld as though that combined amount repeated every period, which pushes it into a much higher bracket. The excess comes back when you file.
Is the 22% bonus rate the tax I actually pay?
No. It is a withholding rate, not a tax rate. Your bonus is taxed at your marginal rate on your return. If your marginal rate is higher than 22%, you will owe the difference; if lower, you get it back.
Can I avoid tax on a bonus?
You cannot avoid it, but you can defer it. Contributing part of the bonus to a traditional 401(k) removes it from income tax this year, and an HSA contribution removes it from both income tax and FICA. Ask payroll before the bonus is processed, since it usually cannot be changed afterwards.
Do bonuses pay Social Security and Medicare?
Yes. A bonus is wages, so 6.2% Social Security applies up to the $184,500 wage base and 1.45% Medicare applies with no cap. If the bonus pushes you over $200,000 for the year, the 0.9% Additional Medicare tax applies to the excess.
Which method will my employer use?
Most use the flat 22% method for a separate bonus payment because it is simpler, and the aggregate method when the bonus is paid inside a regular paycheck. Your pay stub shows which: a separate supplemental line means the flat method.
Related calculators
These figures are estimates for informational purposes and are not tax advice. Actual withholding depends on your employer’s payroll system, your year-to-date wages and your specific W-4. Federal rates come from IRS Rev. Proc. 2025-32 and the SSA 2026 announcement; state rates come from each state’s own withholding guide, with the source and verification date published on every state page. Read the methodology, or see who maintains this data.