Enter your bonus amount to see your take-home after taxes.
How Bonuses Are Taxed in 2026
Most employers withhold a flat 22% federal income tax from a bonus in 2026 (37% on supplemental wages above $1 million), plus 6.2% for Social Security and 1.45% for Medicare. A $10,000 bonus therefore nets about $7,035 before any state tax. Pick the flat or aggregate method above to see your own take-home, or see what a bonus costs in every state.
Bonuses are classified as supplemental wages by the IRS. The tax withheld at payment time is not necessarily the final tax owed; it is reconciled when you file your annual return.
FICA on bonuses: Social Security (6.2%) and Medicare (1.45%) apply to bonuses the same as regular wages. SS applies up to the $184,500 wage base. If your YTD wages already exceed it, no SS is taken from the bonus.
Bonus Take-Home at the 22% Flat Rate
Federal withholding only, assuming your year-to-date wages are below the $184,500 Social Security wage base and you live in a state with no income tax.
| Bonus | Federal (22%) | Social Security (6.2%) | Medicare (1.45%) | Take-home |
|---|---|---|---|---|
| $1,000 | $220 | $62 | $15 | $704 |
| $2,500 | $550 | $155 | $36 | $1,759 |
| $5,000 | $1,100 | $310 | $73 | $3,518 |
| $10,000 | $2,200 | $620 | $145 | $7,035 |
| $25,000 | $5,500 | $1,550 | $363 | $17,588 |
| $50,000 | $11,000 | $3,100 | $725 | $35,175 |
In other words you keep about 70.35 cents of each bonus dollar before state tax. State withholding can take another few percent, or more in states with a flat supplemental rate.
Withholding vs the Tax You Actually Owe
At filing, a bonus is ordinary income taxed at your marginal rate. Here is what that means for a $10,000 bonus that sits entirely in one bracket, compared with the $2,200 withheld at 22%.
| Your top bracket | Actual federal tax on $10,000 | Withheld at 22% | At filing |
|---|---|---|---|
| 10% | $1,000 | $2,200 | $1,200 back |
| 12% | $1,200 | $2,200 | $1,000 back |
| 22% | $2,200 | $2,200 | Even |
| 24% | $2,400 | $2,200 | $200 more owed |
| 32% | $3,200 | $2,200 | $1,000 more owed |
| 35% | $3,500 | $2,200 | $1,300 more owed |
| 37% | $3,700 | $2,200 | $1,500 more owed |
For a single filer the 24% bracket starts at $105,700 of taxable income, about $121,800 of salary with the standard deduction. From there up, a large bonus paid at 22% tends to leave a balance due. Adding extra withholding in Step 4(c) of your W-4 for the rest of the year is the simplest fix.
Aggregate Method: A Worked Example
With the aggregate method the employer adds the bonus to a regular paycheck and withholds as if that one large check were your normal pay all year. Single filer, $10,000 bonus, no W-4 adjustments:
| Salary and pay schedule | Federal withholding on the bonus | As a share of the bonus |
|---|---|---|
| $40,000, biweekly | $2,520 | 25.2% |
| $75,000, biweekly | $2,797 | 28.0% |
| $150,000, biweekly | $3,150 | 31.5% |
| $75,000, monthly | $2,322 | 23.2% |
All four withhold more than the flat $2,200, because a $12,885 biweekly check looks like a $335,000 salary once annualized. The money is not lost: anything over your real tax comes back at filing. Fewer, larger regular checks (monthly pay) soften the effect.
Bonus Rules Worth Knowing
- Over $1 million: supplemental wages above $1,000,000 in a year must be withheld at 37%. On $1.2 million of bonuses that is $220,000 on the first million plus $74,000 on the rest, $294,000 in total.
- Social Security cap: no Social Security is withheld once your wages for the year pass $184,500, so a December bonus often nets more than a spring one for high earners.
- Additional Medicare: the employer adds 0.9% on wages above $200,000 paid by that employer in the year.
- 401(k) deferral: if your plan allows deferring part of a bonus, that part skips federal income tax withholding, but it counts toward the $24,500 annual limit and still owes Social Security and Medicare.
- Overtime and tips: the 2025 to 2028 deductions for overtime premium and qualified tips do not cover bonuses or commissions.
To see how a bonus fits into your whole year, try the tax bracket calculator or the W-4 calculator.
Withheld Now, Settled at Filing
The IRS treats bonuses as supplemental wages, which means they are subject to federal income tax withholding at a different rate than your regular paycheck. There are two methods your employer can use, and the one they choose significantly affects how much is withheld from your bonus check.
Regardless of which method your employer uses, your bonus is added to your total income and taxed at your marginal rate when you file your annual return. If too much was withheld, you get a refund. If too little was withheld, you owe the difference. The withholding method only affects timing, not the final tax owed.
Flat Rate vs Aggregate Method Explained
How to Reduce Tax on Your Bonus
You cannot avoid paying income tax on a bonus, but you can reduce the amount withheld and potentially lower your overall tax liability. The most effective strategy is to maximize pre-tax retirement contributions. If your employer offers a 401(k), you can direct some or all of your bonus into it before taxes are applied, reducing your taxable income for the year.
Another option is to ask your employer to pay the bonus in a different tax year if you expect lower income next year. Some employers will accommodate this for year-end bonuses. You can also update your W-4 (for example, adding expected deductions in Step 4(b)) to reduce withholding for the rest of the year, though this may leave a tax bill at filing time.
2026 Federal Bonus Tax Rates at a Glance
| Withholding Method | Rate | When Used |
|---|---|---|
| Flat Rate | 22% | Supplemental wages under $1M |
| Flat Rate (high earner) | 37% | Supplemental wages over $1M |
| Aggregate | Varies | Based on regular paycheck + bonus |
| Social Security | 6.2% | Up to $184,500 wages in 2026 |
| Medicare | 1.45% | All wages, no cap |