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Bonus Tax Calculator

Your bonus isn't “taxed more” — it's withheld differently. See both methods your employer can use, your state's supplemental rate, and how much of the extra withholding comes back when you file.

Both employer methods, side by side — and what actually lands in your account.

2026

Net bonus, percentage method: $7,035.

You keep (percentage method)
of a $10,000 bonus · withholding 29.7%
70%you keep

Of your $10,000 bonus (percentage method)

  • $7,035You keep70.4%
  • $2,200Federal22.0%
  • $765FICA7.6%
Filing status

Percentage method

Flat 22% federal — separate bonus check

Federal income tax
−$2,200
Social Security (6.2%)
−$620
Medicare (1.45%)
−$145
Net bonus
$7,035

Aggregate method

Taxed with your regular paycheck

Federal income tax
−$2,200
Social Security (6.2%)
−$620
Medicare (1.45%)
−$145
Net bonus
$7,035

Estimates only. Not tax or legal advice. Consult a professional.

How your employer withholds: two methods

Percentage method (flat 22%)

If the bonus comes as a separate check, the IRS (Pub 15) allows a flat 22% federal withholding — no W-4 math involved. On anything above $1,000,000 of supplemental wages in the year, 37% is mandatory. It's the most common method because it's the simplest for payroll.

Aggregate method

The bonus is added to that period's paycheck and everything is withheld with the regular tables, as if you earned that much every period. A big bonus makes that period look like a huge annual salary, so withholding spikes — hence the 'my bonus got destroyed' effect. It's mandatory when the bonus is paid with regular wages without separate identification.

What neither method changes: your FINAL tax. At filing, a bonus is ordinary income taxed at your real bracket — over- (or under-) withholding settles in your refund.

The state layer: 0% to 11.7%

Published flat rate

Most taxing states publish a supplemental rate for bonuses: NY 11.7%, CA 10.23% (bonus/stock), OR 8%, MN 6.25%… Georgia is the odd case where the supplemental rate (5.39%) beats the regular one (4.99%).

No flat rate

AZ, CT, DE, HI, KY, LA, NJ, SC, UT, WV publish no single flat rate — employers use their regular tables. The calculator flags it and estimates the withholding as the change in your year's state tax with and without the bonus.

Special mechanics

Vermont withholds 30% of the federal amount withheld (not a % of the bonus). Wisconsin runs its own tiered table (3.54%–7.65%). Nine states tax no wages at all.

Paying out bonuses yourself?

Payroll software applies the right method, the supplemental rates, and the filings automatically — we compared the main options.

Best payroll software 2026Gusto vs ADP
Guaranteed net? Gross-upNo tax on overtime (OBBBA)Pay raise calculatorPaycheck calculator

Bonus tax FAQ

Why was my bonus taxed so much?
Because most employers withhold bonuses under the percentage method: a flat 22% federal + 7.65% FICA + your state. A $5,000 bonus with no state tax lands at $3,518. But that's WITHHOLDING, not your final tax — if your real bracket is under 22%, the difference comes back as a refund when you file.
What's the difference between the percentage and aggregate methods?
Percentage: the bonus comes in a separate check withheld at a flat 22% federal (37% on anything above $1M of supplemental wages in the year). Aggregate: the bonus rides your regular paycheck and is withheld per the normal tables — often withholding MORE if the bonus pushes that period into a high bracket. The employer chooses, unless the bonus is paid with regular wages without separate identification: then aggregate is mandatory.
Is 22% what I actually pay in the end?
No. A bonus is ordinary income: at filing it stacks with everything else and is taxed at your real bracket. The 22% is just a prepayment. Example: on a $40,000 salary, a $10,000 bonus sits in the 12% bracket — percentage withholding takes $2,200 but your real tax on that bonus is about $1,200; the difference comes back on your return.
Do bonuses pay Social Security and Medicare?
Yes, always: 6.2% Social Security (up to the $184,500 wage base in 2026 — if your salary already crossed it, that part isn't withheld) and 1.45% Medicare (+0.9% additional over $200,000). No employer method changes FICA.
Does my state tax bonuses differently?
Many states publish a flat supplemental rate: from 1.5% (ND) to 11.7% (NY); California uses 10.23% specifically for bonuses and stock options. Nine states tax no wages at all. And some (CT, NJ, HI, among others) publish no flat rate — there the employer uses regular tables. The calculator applies your state's 2026 rate and tells you which path it used.

Free PDF: 10 tax hacks for your bonus

What to move before year-end (401k, HSA, timing) so the bonus goes further. Bilingual EN/ES.

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