How to use the bonus tax calculator
- Enter the bonus and the regular pay in the same pay period.
- Choose frequency and filing status from your W-4.
- Add year-to-date wages if you are near the Social Security wage base.
- Compare the two methods: flat 22% and aggregate.
- Read the net bonus under each method.
Bonuses are taxed like wages, withheld two ways
A bonus is supplemental wages and is taxed as ordinary income on your return, at your normal bracket. What differs is withholding. Employers may use the flat method, withholding 22% of the bonus (37% on supplemental wages above $1 million in a year, which is mandatory), when the bonus is paid separately and identified. Or they use the aggregate method: add the bonus to your regular pay for that period, withhold on the total as if it were one paycheck, and subtract what was already withheld on the regular pay. Once an employee's supplemental wages for the year pass $1 million, the part above $1 million is withheld at 37% under either method, and this calculator applies that rate to that part in both columns. Publication 15 for 2026 states the 22% and 37% rates. This bonus tax calculator runs both so you can see which your employer's method is likely to give.
Worked example
A single filer paid $2,500 every two weeks gets a $5,000 bonus. Flat: 22% of $5,000 is $1,100.00. Aggregate: withholding on $7,500 for the period (annualised to $195,000) minus withholding on $2,500, which is $1,150.54. Social Security takes $310.00 and Medicare $72.50. Net bonus is $3,517.50 flat or $3,466.96 aggregate. The two differ because the aggregate method treats $7,500 as if you earned it every two weeks, $195,000 a year, which falls in the 24% bracket, while the flat method ignores your bracket.
Withholding is not the tax you owe
Neither method is your final tax. Come tax time, the bonus is added to your income and taxed at your marginal bracket. If 22% was withheld but your bracket is 12%, you get the difference back as a refund; if your bracket is 32%, you owe more. The 2026 brackets are laid out on the capital gains tax calculator page, and you can adjust your W-4 if you expect to owe. State income tax on bonuses varies and is not included; pages like the Pennsylvania and Illinois paycheck calculators show a state's flat rate.
Method and sources
Flat: 22% up to $1 million of supplemental wages in the year, 37% above, per IRS Publication 15 (2026), section 7 (Supplemental Wages). Aggregate: when income tax was withheld from regular wages, add the supplemental wages to the regular wages, figure the tax on the combined total, subtract the tax already withheld from the regular wages and withhold the remainder, as described in section 7 of Publication 15; for the part of the bonus above $1 million of supplemental wages in the year, the mandatory 37% rate is used instead. Withholding uses the IRS Publication 15-T (2026) percentage method tables, shared with the state paycheck calculators. The aggregate figure assumes you list the wages already paid this year in the supplemental wages field. Estimate only, not tax advice.
Worked examples
| Example | Input | Result |
|---|---|---|
| $5,000 bonus, single | Bonus amount ($): 5000; Regular gross pay in the same pay period ($): 2500; Pay frequency: biweekly; Federal filing status (W-4): single; Regular wages paid earlier this year ($): 0; Bonuses and other supplemental wages paid earlier this year ($): 0 | Bonus: $5,000.00; Federal tax, flat method: $1,100.00; Federal tax, aggregate method: $1,150.54; Social Security on the bonus: $310.00; Medicare on the bonus: $72.50; Net bonus, flat method: $3,517.50; Net bonus, aggregate method: $3,466.96; Withheld more by: Aggregate method |
| $20,000 bonus, married | Bonus amount ($): 20000; Regular gross pay in the same pay period ($): 4000; Pay frequency: semimonthly; Federal filing status (W-4): mfj; Regular wages paid earlier this year ($): 60000; Bonuses and other supplemental wages paid earlier this year ($): 0 | Bonus: $20,000.00; Federal tax, flat method: $4,400.00; Federal tax, aggregate method: $5,029.52; Social Security on the bonus: $1,240.00; Medicare on the bonus: $290.00; Net bonus, flat method: $14,070.00; Net bonus, aggregate method: $13,440.48; Withheld more by: Aggregate method |
| High earner near the wage base | Bonus amount ($): 50000; Regular gross pay in the same pay period ($): 9000; Pay frequency: monthly; Federal filing status (W-4): single; Regular wages paid earlier this year ($): 170000; Bonuses and other supplemental wages paid earlier this year ($): 0 | Bonus: $50,000.00; Federal tax, flat method: $11,000.00; Federal tax, aggregate method: $16,419.18; Social Security on the bonus: $341.00; Medicare on the bonus: $986.00; Net bonus, flat method: $37,673.00; Net bonus, aggregate method: $32,253.82; Withheld more by: Aggregate method |
FAQ
What percent is taken out of a bonus?
Employers often withhold a flat 22% federal tax on a bonus, plus 7.65% FICA, plus any state tax. The aggregate method can produce a different amount.
Why was so much taken out of my bonus?
Under the aggregate method the bonus is added to regular pay and treated as if you earned that much every period, which can push withholding into a higher bracket. It is corrected on your tax return.
Is a bonus taxed at a higher rate than regular pay?
No. It is ordinary income at your bracket. Only the withholding method differs.
When is the 37% rate used?
On supplemental wages above $1 million paid to an employee in the calendar year, withholding at 37% is mandatory.
Can I ask my employer to withhold less?
Withholding on a flat-rate bonus does not follow your W-4 allowances. You can change how your regular pay is withheld, and settle the difference on your return.
Does this include state tax?
No. Only federal income tax, Social Security and Medicare. State tax on bonuses depends on the state.
Social Security, Medicare and the wage base
FICA applies to bonuses without a lower rate. Social Security is 6.2% until your wages for the year reach $184,500 (2026), so a bonus late in the year for a high earner may be partly or fully exempt. Medicare is 1.45%, and an extra 0.9% applies to wages over $200,000. Enter wages paid earlier in the year to see those limits take effect.