Bonus Tax Calculator
See exactly how much of your bonus you'll take home after federal, FICA, and state taxes.
Bonus Details
Bonus Take-Home (Flat 22% Method)
$6,535
from $10,000 bonus · 34.7% total tax rate
Withholding Method Comparison
| Item | Flat 22% | Aggregate |
|---|---|---|
| Federal Withholding | $2,200 | $2,821 |
| Social Security | $620 | $620 |
| Medicare | $145 | $145 |
| State Tax | $500 | $500 |
| Total Tax | $3,465 | $4,086 |
| Take-Home | $6,535 | $5,914 |
Difference: $621 — Aggregate method (less withheld upfront)
Actual Tax at Filing
Your marginal bracket: 22%
Actual tax owed on bonus: $2,200
Tips
- Contributing your bonus to a pre-tax 401(k) can reduce the taxable amount.
- Year-end bonuses can be strategically timed to manage bracket creep.
How Bonuses Are Taxed in 2026
Bonuses are classified as "supplemental income" by the IRS. Your employer can withhold taxes using two methods: the flat percentage method (22% federal on the first $1M, 37% above) or the aggregate method (treats your bonus as if you earn that amount every pay period). Neither changes your actual tax — they only affect withholding. You settle up when you file.
Bonus Tax Withholding Rates (2026)
| Tax | Rate | Notes |
|---|---|---|
| Federal (flat method) | 22% | First $1,000,000 of supplemental income |
| Federal (over $1M) | 37% | Amount exceeding $1M |
| Social Security | 6.2% | Up to $168,600 combined wages |
| Medicare | 1.45% | All income; +0.9% over $200K |
| State tax | 0–13.3% | Varies by state |
Flat 22% vs Your Actual Tax Rate
The flat 22% is just withholding — not the final tax. If your marginal tax bracket is 12%, you're being overwithheld and will get a refund. If your bracket is 32%, you're underwithheld and will owe more at tax time. Only people in the 22% bracket have perfect alignment between withholding and actual tax.
| Your Marginal Bracket | 22% Withholding Effect |
|---|---|
| 10% or 12% | Overwithheld — expect a refund |
| 22% | About right |
| 24% or 32% | Underwithheld — may owe at filing |
| 35% or 37% | Significantly underwithheld |
Frequently Asked Questions
Are bonuses taxed at 40%?
It can feel like it, but no. The total withholding (federal 22% + FICA 7.65% + state) often reaches 35-40%. However, the actual tax rate is your marginal bracket rate. If you're overwithheld, you'll get the difference back as a refund.
Can I reduce tax on my bonus?
Yes. Contribute all or part of your bonus to a pre-tax 401(k) and that amount won't be subject to income tax (though FICA still applies). If your employer allows, request the bonus be paid in a lower-income year. HSA contributions also reduce taxable income.
See also: Paycheck Calculator and Federal Tax Calculator.