Tax on Bonus Calculator
Created by: James Porter
Last updated:
See how much of your bonus you keep after the 22% federal withholding, Social Security, Medicare and state tax, and whether you will get money back or owe more when you file.
Tax on Bonus Calculator
FinanceSee how much of your bonus you keep after the 22% flat withholding, and what the bonus really adds to your tax bill.
Use 0 in states with no income tax
Optional. Social Security stops at the annual wage cap
How bonuses are taxed
A bonus is taxed as ordinary income, the same as your salary. What feels different is the withholding: most employers take a flat 22% for federal income tax, regardless of your bracket, plus Social Security, Medicare and state tax.
This calculator shows both numbers. The first is what lands in your bank account after 22% withholding. The second is what you keep once your tax return settles the real amount, which depends on your bracket.
Percentage method vs. aggregate method
| Percentage (flat-rate) method | Aggregate method | |
|---|---|---|
| How it works | 22% of the bonus, paid separately from salary | Bonus added to that period's regular pay and withheld as one paycheck |
| Typical withholding | Exactly 22% federal | Often more than 22%, because the paycheck looks like a much higher salary |
| Over $1 million | 37% mandatory on supplemental wages above $1 million in the year | |
| Final tax | The same either way: settled on your tax return at your actual bracket | |
Your employer chooses the method. If your bonus arrives in the same check as regular pay without a separate line for federal tax, it was probably withheld with the aggregate method.
Examples for 2026
Single filer, no state tax. Social Security and Medicare are the same in every case: 7.65% of the bonus.
| Salary | Bonus | Withheld (22%) | Tax bonus adds | At filing |
|---|---|---|---|---|
| $60,000 | $10,000 | $2,200 | $1,550 | $650 refund |
| $85,000 | $10,000 | $2,200 | $2,200 | Even |
| $250,000 | $20,000 | $4,400 | $6,400 | $2,000 owed |
On a $60,000 salary, part of the bonus falls in the 12% bracket, so 22% withholding is $650 too much. On $85,000, the whole bonus is taxed at 22% and withholding is right. On $250,000, the bonus is taxed at 32%, so withholding falls $2,000 short.
If your bonus will be under-withheld
If your salary already puts you in the 24% bracket or higher, set aside the shortfall or raise your withholding for the rest of the year with the W-4 withholding calculator. A large shortfall can trigger an underpayment penalty.
To see your regular paycheck alongside the bonus, use the take-home pay calculator.
Frequently asked questions
How much tax is taken out of a bonus?
Most employers withhold a flat 22% federal income tax, plus 6.2% Social Security, 1.45% Medicare and any state tax. On a $10,000 bonus that is $2,200 federal and $765 in Social Security and Medicare, so you receive about $7,035 before state tax.
Are bonuses taxed at a higher rate than regular pay?
No. A bonus is ordinary income and is taxed at the same rates as your salary when you file. The 22% is only a withholding rate. If your top bracket is lower than 22%, you get the difference back as a refund; if it is higher, you owe the difference.
What is the difference between the percentage method and the aggregate method?
With the percentage (flat-rate) method, the employer withholds exactly 22% of the bonus. With the aggregate method, the employer adds the bonus to your regular pay for that period and withholds as if you earned that much every paycheck, which often withholds more than 22%. Both are only estimates; your real tax is settled on your return.
What happens with bonuses over $1 million?
Supplemental wages above $1 million in a calendar year must be withheld at 37%, regardless of your Form W-4. The first $1 million can still use the 22% flat rate.
Can I reduce the tax on my bonus?
You can ask your employer to put part of the bonus into a traditional 401(k), up to the annual limit, which lowers income tax. Some plans also allow HSA contributions from a bonus. Social Security and Medicare still apply to 401(k) deferrals.
Does a bonus count toward the Social Security wage cap?
Yes. Social Security tax stops once your total wages for the year reach $184,500 in 2026 ($176,100 in 2025). Enter your wages paid so far this year so the calculator can stop Social Security at the cap.
Sources
- IRS Publication 15 (2026), section 7: Supplemental Wages
- IRS Revenue Procedure 2025-32 (2026 brackets and standard deduction)