Calculator
Bonus tax calculator
Withholding on one bonus: federal income tax, Social Security, Medicare and the state's bonus rate.
Bonus after tax$3,006.00$1,994.00 withheld (39.9%) from $5,000
| Federal income tax (22% flat) | −$1,100.00 |
|---|---|
| Social Security (6.2%) | −$310.00 |
| Medicare (1.45%) | −$72.50 |
| California income tax (10.23%) | −$511.50 |
| Bonus after withholding | $3,006.00 |
California's 2026 bonus rate is 10.23%. Other supplemental pay such as overtime and commissions paid separately: 6.6%.
How bonus tax is calculated in 2026
Federal income tax on a bonus is withheld in one of three ways set out in IRS Publication 15, section 7, "Supplemental Wages"[p15]:
- Flat 22% (optional flat rate). Allowed when the bonus is paid separately or its amount is shown separately from regular pay, and income tax was withheld from your regular wages this year or last year. The employer must use exactly 22% and ignores your Form W-4.
- Aggregate method. The employer adds the bonus to your regular pay for the period, figures withholding as if the total were one paycheck, and subtracts the tax already withheld from the regular pay. It is required when a bonus is lumped into a paycheck with no separate amount, and when no income tax was withheld from your regular wages this year or last year.
- Mandatory 37%. Supplemental pay above $1 million in a calendar year is withheld at 37%, whatever your W-4 says.
Social Security (6.2%) and Medicare (1.45%) apply to bonuses exactly as to regular pay. Social Security stops once your wages for the year reach $184,500[ssa], and an extra 0.9% of Medicare is withheld on wages above $200,000[tc751]. Your employer pays a matching 7.65%, which the payroll tax calculator adds up as an employer cost.
Withholding is a prepayment, not the final tax. On your Form 1040 a bonus is ordinary wage income taxed at the same rates as your salary, so if 22% is more than your top bracket, the difference comes back as a refund, and if it is less, you owe it.
Worked example: a $5,000 bonus
With the flat method, federal income tax is $5,000 × 22% = $1,100.00. Social Security takes $310.00 and Medicare $72.50, so $1,482.50 is withheld before state tax. In California the separate bonus rate of 10.23% adds $511.50[de44], leaving a check of $3,006.00.
With the aggregate method, take a single filer paid $2,500 every two weeks. Withholding on the regular check is $216.15, figured on $65,000 a year with the Publication 15-T percentage method[p15t]. Adding the bonus makes a $7,500 check, which payroll treats as $195,000 a year and withholds $1,366.69. The bonus therefore carries $1,150.54 of federal tax, 23% of it, because one big check is annualized into the 24% bracket. With FICA the bonus nets $3,466.96 in a state without income tax.
| Regular pay per check | Yearly pay | 22% flat | Aggregate method | Aggregate as % of bonus |
|---|---|---|---|---|
| $1,000 | $26,000 | $1,100 | $968.62 | 19.4% |
| $1,500 | $39,000 | $1,100 | $1,030.54 | 20.6% |
| $2,000 | $52,000 | $1,100 | $1,090.54 | 21.8% |
| $2,500 | $65,000 | $1,100 | $1,150.54 | 23% |
| $3,000 | $78,000 | $1,100 | $1,166.31 | 23.3% |
| $4,000 | $104,000 | $1,100 | $1,235.92 | 24.7% |
| $6,000 | $156,000 | $1,100 | $1,425.39 | 28.5% |
| $10,000 | $260,000 | $1,100 | $1,735.78 | 34.7% |
The aggregate method withholds less than 22% only when regular pay is low (here, $2,000 a check or less) and more than 22% for most full-time salaries. Either way the true tax is settled on your return.
State bonus tax rates for 2026
22 states set a flat rate for bonuses in their 2026 employer withholding guides, from 1.5% in North Dakota to 11.70% in New York[nys50]. 9 states have no income tax on wages. Delaware, Hawaii, Mississippi and New Jersey tell employers to combine a bonus with regular wages, and 6 more states give no separate bonus rule, so their regular formula applies. The calculator applies a state's flat rate only where the state's own 2026 guide sets one; for the other states it shows federal tax and FICA and links to the state paycheck calculator.
| State | Rule in the 2026 state guide | Rate in the calculator | State source |
|---|---|---|---|
| Alabama | Optional 5% on bonuses and other supplemental pay | 5% (flat method) | Withholding Tax Tables and Instructions (Jan 2026) |
| Alaska | No state income tax on wages | 0% | – |
| Arizona | Not confirmed: the 2026 employer guide could not be read | Not confirmed | – |
| Arkansas | 3.7% on bonuses, commissions or overtime | 3.7% (flat method) | Withholding Tax Instructions for Employers (Rev. 4/27/26) |
| California | 10.23% on bonuses and stock options paid separately; 6.6% on other supplemental pay; or aggregate | 10.23% (flat method) | DE 44 California Employer's Guide (2026) |
| Colorado | No separate bonus rule in the 2026 guide: withheld with the regular formula | Regular wages | Wage Withholding Tax Guide (Jan 2026) |
| Connecticut | Not confirmed: the 2026 employer guide could not be read | Not confirmed | – |
| Delaware | Aggregate: tax on yearly regular pay plus the bonus, minus tax on regular pay | Regular wages | Employer's Guide, Withholding Regulations |
| District of Columbia | Not confirmed: the 2026 employer guide could not be read | Not confirmed | – |
| Florida | No state income tax on wages | 0% | – |
| Georgia | The income tax rate in effect when paid: 4.99% from May 11, 2026 (5.19% before) | 4.99% (flat method) | Employer's Withholding Tax Guide 2026 (Sept 2026) |
| Hawaii | Aggregate with regular wages of the current or previous pay period | Regular wages | Booklet A, Employer's Tax Guide (for 2026) |
| Idaho | Not confirmed: the 2026 employer guide could not be read | Not confirmed | – |
| Illinois | No separate bonus rule in the 2026 guide: withheld with the regular formula | Regular wages | PUB-130 (R-02/26) |
| Indiana | Bonus checks figured without exemptions: 2.95% plus the county rate | 2.95% (flat method) | Departmental Notice #1 (2026) |
| Iowa | Top rate, 3.8%, when federal tax is withheld at a flat rate; otherwise combined with wages | 3.8% (flat method) | Iowa Withholding Tax Information |
| Kansas | Not confirmed: the 2026 employer guide could not be read | Not confirmed | – |
| Kentucky | No separate bonus rule in the 2026 guide: withheld with the regular formula | Regular wages | 2026 Kentucky Withholding Tax Formula |
| Louisiana | No separate bonus rule in the 2026 guide: withheld with the regular formula | Regular wages | R-1306 Withholding Tables and Formulas (2026) |
| Maine | Not confirmed: the 2026 employer guide could not be read | Not confirmed | – |
| Maryland | Annual lump-sum bonus: top state rate 6.50% plus the county's top local rate | 6.5% | Employer Withholding Guide (2026) |
| Massachusetts | 5%; 9% on the part above $1,107,750 of yearly pay | 5% (flat method) | Circular M (Jan 1, 2026) |
| Michigan | 4.25% on bonuses paid separately, no exemptions | 4.25% (flat method) | Form 446 Withholding Guide (2026) |
| Minnesota | 6.25% on supplemental pay paid separately, or aggregate | 6.25% (flat method) | Withholding Instruction Booklet (2026) |
| Mississippi | Aggregate; the top bracket rate may be used if aggregating over-withholds | Regular wages | Pub 89-700 Withholding Guidelines |
| Missouri | Optional 4.7% flat on supplemental wages | 4.7% (flat method) | Form 4282 Employer's Tax Guide (Rev. 03-2026) |
| Montana | 5% on supplemental pay paid separately, or aggregate | 5% (flat method) | Employer and Information Agent Guide (2026) |
| Nebraska | 3.5% flat on supplemental wages | 3.5% (flat method) | 2026 Nebraska Circular EN |
| Nevada | No state income tax on wages | 0% | – |
| New Hampshire | No state income tax on wages | 0% | – |
| New Jersey | Aggregate when paid with wages; tables without allowances when paid separately | Regular wages | NJ-WT Withholding Instructions |
| New Mexico | Same method as federal; 5.9% when federal tax is withheld at a flat rate | 5.9% (flat method) | FYI-104 Withholding Tax (2026) |
| New York | 11.70% state; New York City 4.25% and Yonkers 1.95975% on top for residents | 11.7% (flat method) | NYS-50-T-NYS (1/26) |
| North Carolina | 4.09% flat on supplemental wages | 4.09% (flat method) | NC-30 (2026) |
| North Dakota | 1.5% flat, or aggregate | 1.5% (flat method) | Withholding Rates and Instructions (2026) |
| Ohio | Optional 2.75% on bonuses | 2.75% (flat method) | Employer Withholding |
| Oklahoma | Top rate, 4.5%, on supplemental wages stated separately, or aggregate | 4.5% (flat method) | OAC 710:90 Withholding (2026) |
| Oregon | Optional 8% when paid at a different time from regular wages | 8% (flat method) | Withholding Tax Formulas (2026) |
| Pennsylvania | 3.07%, the same flat rate as all other pay | 3.07% | REV-415 Employer Withholding Guide |
| Rhode Island | Not confirmed: the 2026 employer guide could not be read | Not confirmed | – |
| South Carolina | No separate bonus rule in the 2026 guide: withheld with the regular formula | Regular wages | WH-1603 Withholding Tables (2026) |
| South Dakota | No state income tax on wages | 0% | – |
| Tennessee | No state income tax on wages | 0% | – |
| Texas | No state income tax on wages | 0% | – |
| Utah | No separate bonus rule in the 2026 guide: withheld with the regular formula | Regular wages | Publication 14 (Rev. 4/26) |
| Vermont | Not confirmed: the 2026 employer guide could not be read | Not confirmed | – |
| Virginia | 5.75% if tax was withheld from regular wages, or aggregate | 5.75% (flat method) | Employer Withholding Instructions (Rev. 10/26) |
| Washington | No state income tax on wages | 0% | – |
| West Virginia | Not confirmed: the 2026 employer guide could not be read | Not confirmed | – |
| Wisconsin | Not confirmed: the 2026 employer guide could not be read | Not confirmed | – |
| Wyoming | No state income tax on wages | 0% | – |
"Not confirmed" (Arizona, Connecticut, District of Columbia, Idaho, Kansas, Maine, Rhode Island, Vermont, West Virginia, Wisconsin) means we could not read that state's 2026 employer guide, so no rate is shown; until then, add the bonus to one paycheck in the state tax calculator. Massachusetts switches to 9% for very high earners[circm], and local income taxes (New York City, Maryland counties, Indiana counties, Ohio and Pennsylvania cities) come on top of the state rate.
Common bonus tax mistakes
- "Bonuses are taxed at a higher rate." They are not. A bonus is wages; only the withholding shortcut differs, and your return evens it out.
- Using 22% on a bonus lumped into a paycheck. If the bonus is not shown as a separate amount, payroll must aggregate it, which is why a combined check can lose more than 22%.
- Forgetting FICA. Social Security and Medicare take 7.65% on top of income tax. A high earner's December bonus may skip Social Security if year-to-date pay already passed $184,500.
- Assuming 401(k) saves FICA. If your plan deferral applies to bonuses, it lowers federal income tax withholding but not Social Security or Medicare[p15].
- Assuming every state uses a flat rate. State flat rates run from 1.5% to 11.70%, and many states have none.
See the whole paycheckTo see a bonus inside a regular paycheck with your W-4, 401(k) and state, add it to one pay period in the paycheck calculator. Commission checks follow the same supplemental wage rules (see the commission calculator); for overtime, the overtime tax calculator covers the 2025–2028 deduction.
Frequently asked questions
How much tax is taken out of a $5,000 bonus?
With the 22% flat rate, $1,100.00 of federal income tax plus $382.50 of Social Security and Medicare, or $1,482.50 in all, leaving $3,517.50 before state tax. California withholds another $511.50 at its 10.23% bonus rate.
Why is my bonus taxed so high?
Usually because it was added to a regular paycheck (the aggregate method), so payroll treated the whole check as if you earned it every pay period and withheld at a higher bracket. Flat 22% plus 7.65% FICA plus state tax can also reach 30% to 40%. Any over-withholding comes back when you file your return.
Are bonuses taxed differently than regular pay?
No. On your tax return a bonus is ordinary wage income taxed at the same rates as salary. Only the withholding method differs: a flat 22% or the aggregate method instead of the normal paycheck calculation.
What is the federal bonus tax rate for 2026?
The optional flat rate is 22% for bonuses up to $1 million in the year, and 37% is mandatory on the part above $1 million (IRS Publication 15, section 7).
What is the bonus tax rate in California?
California's optional flat rate is 10.23% for bonuses and stock options paid separately, and 6.6% for other supplemental pay such as overtime and commissions (EDD DE 44). California State Disability Insurance also applies to bonuses.
Sources
- Publication 15 (Circular E), Employer's Tax Guide, for use in 2026
- Publication 15-T (2026), Federal Income Tax Withholding Methods
- Contribution and Benefit Base ($184,500 for 2026)
- Topic no. 751, Social Security and Medicare withholding rates
- DE 44, California Employer's Guide 2026 (supplemental wages, p.18)
- NYS-50-T-NYS, New York State Withholding Tax Tables and Methods (1/26)
- Circular M, Income Tax Withholding Tables Effective January 1, 2026 (supplemental wages, p.13)