US · 2026
Bonus tax calculator
Short answer
In 2026 federal income tax on a bonus is usually withheld at a flat 22%, plus 6.2% social security and 1.45% Medicare, so a $5,000 bonus loses $1,482.50 before any state tax. Bonuses over $1 million in a year are withheld at 37% on the excess. Employers can instead add the bonus to regular pay: the aggregate method.
| Line | Flat 22% | Aggregate |
|---|---|---|
| Bonus | $5,000.00 | $5,000.00 |
| Federal income tax | −$1,100.00 | −$1,090.54 |
| Social security (6.2%) | −$310.00 | −$310.00 |
| Medicare (1.45%) | −$72.50 | −$72.50 |
| Bonus after federal taxes | $3,517.50 | $3,526.96 |
Worked example: a $5,000 bonus
A single employee paid $2,000 every two weeks, with a 2026 Form W-4 and nothing in Steps 2 to 4, gets a $5,000 bonus in the same payroll. Here is what each method withholds from the bonus.
| Line | Flat 22% | Aggregate method |
|---|---|---|
| Federal income tax | $1,100.00 | $1,090.54 |
| Social security (6.2%) | $310.00 | $310.00 |
| Medicare (1.45%) | $72.50 | $72.50 |
| Bonus after federal taxes | $3,517.50 | $3,526.96 |
The aggregate figure comes from Publication 15-T's percentage method. $7,000 as one biweekly paycheck works out to $1,246.69 of federal income tax; the $2,000 regular pay alone to $156.15. The difference, $1,090.54, is withheld from the bonus. At this pay the two methods land close together. Which one withholds more depends on the regular pay, the pay frequency and the Form W-4, so the calculator shows both.
Are bonuses taxed more than regular pay?
No. A bonus is income like any other, and the tax you finally owe on it depends on your own bracket when you file. What differs is the withholding. The flat 22% may be more or less than your real rate. The aggregate method treats the bonus paycheck as if you earned that much every payday, which can push the withholding into a higher bracket for that one check.
Either way, too much withheld comes back as a refund, and too little shows up as tax due. Someone in the 12% bracket who has 22% withheld from a $5,000 bonus has about $500 more withheld than the bonus itself adds to their tax.
Bonuses over $1 million
Publication 15 makes 37% mandatory on supplemental wages over $1 million paid to one employee in the calendar year, counting payments from every business under common control. The rate applies only to the part over $1 million; the first $1 million follows the employer's chosen method.
| Part of the bonus | Rate | Federal income tax |
|---|---|---|
| First $1,000,000 | 22% | $220,000.00 |
| Next $200,000 | 37% | $74,000.00 |
| Total | $294,000.00 |
State tax on bonuses
States decide their own withholding on supplemental pay. Some publish a flat supplemental rate, some tell employers to use the aggregate method, and the states with no wage income tax take nothing. This calculator shows federal taxes only.
To estimate state tax on the whole bonus paycheck, run regular pay plus the bonus through the paycheck calculator for the work state: that is the aggregate approach. Check the state revenue department's employer withholding guide for a flat supplemental rate before relying on it.
General information, not tax advice. Figures follow IRS Publication 15 (2026) section 7 and Publication 15-T (2026), read 7 October 2026.
The official method, step by step
- A bonus is a supplemental wage: pay that isn't the employee's regular wages, like commissions, back pay and severance. How it is withheld depends on whether the employer pays or identifies it separately from regular pay.
- Flat rate (method 1a): withhold 22% of the bonus, with no other percentage allowed, whatever the Form W-4 says. It may be used only if income tax was withheld from the employee's regular wages this year or last.
- Aggregate method (1b): add the bonus to the regular wages for the payroll period, work out the tax on the total as if it were one regular paycheck, subtract the tax on the regular wages, and withhold the rest from the bonus.
- Once one employee's supplemental wages in the calendar year pass $1 million, the excess is withheld at 37%, under either method and regardless of the Form W-4.
- Social security (6.2% up to $184,500 of wages in 2026) and Medicare (1.45%, plus 0.9% over $200,000) apply to bonuses like any other wages.
What this leaves out
- State and local income tax on the bonus: states set their own supplemental rules, which this calculator doesn't apply
- Bonuses paid with regular wages without saying how much of each is which (withhold on the total as one paycheck: use the paycheck calculator)
- Pre-tax deductions taken from the bonus, such as a 401(k) percentage
- W-4 Step 3 credits, Step 4 entries and older Forms W-4 (the pay stub generator handles them)
- Your actual tax for the year, which your return settles at your own bracket
Sources: IRS Publication 15 (2026), (Circular E) Employer's Tax Guide, section 7, Supplemental Wages: 37% over $1 million, flat 22% or the aggregate method, social security, Medicare and FUTA apply (read October 7, 2026); IRS Publication 15-T (2026), Federal Income Tax Withholding Methods: the percentage method tables used for the aggregate method (read October 7, 2026).
Bonus tax calculator: common questions
How much tax is taken out of a bonus?
Usually 22% federal income tax, 6.2% social security and 1.45% Medicare: 29.65% in all before state tax, or $1,482.50 from a $5,000 bonus. With the aggregate method the federal part depends on the regular pay it's added to.
Why does my bonus look taxed so high?
Because withholding isn't your final tax. The flat 22% can be higher than your bracket, and the aggregate method treats one big paycheck as if every paycheck were that size. Any extra withheld comes back when you file.
What is the aggregate method for bonuses?
The employer adds the bonus to the regular pay for the period, works out withholding on the total as one paycheck, subtracts what is withheld from the regular pay, and withholds the rest from the bonus.
When can't an employer use the flat 22%?
When no income tax was withheld from the employee's regular wages this year or last; then only the aggregate method is allowed. And if a bonus is paid with regular pay without saying how much each is, the total is withheld on as one paycheck.
Are bonuses subject to social security and Medicare?
Yes. Social security is 6.2% until the year's wages reach $184,500 in 2026, and Medicare is 1.45% of all wages plus 0.9% over $200,000. Enter the wages paid earlier in the year so the calculator can apply the cap.
What is the bonus tax rate over $1 million?
37% on supplemental wages above $1 million paid to one employee in the calendar year. It is mandatory and ignores the Form W-4. The first $1 million is withheld at 22% or by the aggregate method.
Is 22% the tax I'll actually pay on my bonus?
Not necessarily. 22% is only what is withheld. Your return taxes the bonus at your own bracket, from 10% to 37% in 2026, along with the rest of your income.
Can I make a pay stub for a bonus paycheck?
Yes. “Make the bonus pay stub” opens the pay stub generator with regular pay plus the bonus and the federal lines for the method you choose. Add the bonus as its own earnings line and the state tax there.
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