Bonus Tax Calculator (2026)
Estimate the take-home amount of a bonus after the flat federal withholding rate and payroll taxes.
When to use this calculator
Use this calculator when you are about to receive a bonus and want to know what will actually reach your bank account. Bonuses are paid as supplemental wages, and many employers withhold federal tax at a flat 22% rate, so the amount you receive can look smaller than you expect.
Example bonus take-home
How this calculator works
Employers usually withhold a flat 22 percent federal rate on bonuses paid separately (37 percent on the part over 1 million dollars), plus 6.2 percent Social Security and 1.45 percent Medicare. We also subtract the state rate you enter. Your actual tax is set when you file, based on your total income, so you may get some back or owe more. If your pay has already passed the Social Security limit of $184,500 this year, you will not pay that 6.2 percent.
Step-by-step example
Using these inputs: Bonus amount ($): 5000; State income tax rate (%): 5.
On a $5,000 bonus with a 5% state tax, about $1,100 goes to federal withholding, $310 to Social Security, $73 to Medicare and $250 to state tax, leaving $3,268, or about 65% of the bonus.
Tips for a better estimate
- Withholding is not the same as the tax you finally owe. When you file your return, the bonus is taxed at your normal rates, so you may get some back or owe a little more.
- Ask whether your employer lets you send part of the bonus to your 401(k). That lowers the taxable amount.
- Use your state's real rate in the state field, because state tax on bonuses varies widely.
FAQ
Why does my bonus look so small?
Flat withholding plus payroll taxes can take a big share. Part of it may come back as a refund when you file.
Is a bonus taxed at a higher rate?
The withholding is flat, but the real tax is just part of your yearly income and uses normal brackets.
Can I reduce the withholding?
Putting part of the bonus into a 401(k) can lower the taxable amount.
Why is my bonus taxed at a higher rate?
It is usually not taxed at a higher rate. The flat withholding method just takes 22% up front, which can be more than your normal withholding. The difference is settled when you file your return.
Is the 22% rate always used?
It is the standard flat rate for supplemental wages up to $1 million in a year. Employers can also combine the bonus with your regular pay and withhold on the total.
Do I pay Social Security and Medicare on a bonus?
Yes. Bonuses are subject to Social Security (up to the yearly wage limit) and Medicare, just like regular pay.
Rates and limits last updated: October 2026. This is an estimate for general information only, not financial, tax or legal advice.