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Bonus Tax Calculator

Estimate how much of a bonus you take home after 2026 federal withholding, by the flat 22% method or added to a paycheck, plus Social Security, Medicare and state tax.

Level: Grade 7

  • Common Core standard 7.RP.A.3Use proportional relationships to solve multistep ratio and percent problems. Examples: simple interest, tax, markups and markdowns, gratuities and commissions, fees, percent increase and decrease, percent error.
Printable worksheet

Bonus Tax Calculator

Know the answer you need? Pick an input to work backward.

Inputs
How your employer withholds

A bonus paid as its own check is usually withheld at the flat rate.

Only matters near the $184,500 Social Security wage base or $200,000 Medicare threshold.

Supplemental pay over $1 million in a year is withheld at 37%.

Result

Take-home bonus

$3,517.50

On a $5,000.00 bonus, about $1,482.50 is withheld ($1,100.00 federal income tax), leaving $3,517.50. Withholding is a prepayment; your actual 2026 tax is settled on your return.

Federal income tax withheld
$1,100.00
Federal withholding as a share of the bonus
22%
Social Security
$310.00
Medicare
$72.50
State withholding
$0.00
Total withheld
$1,482.50
Share of the bonus you keep
70.35%
Where the bonus goes
  • Take-home$3,517.5070.4%
  • Federal income tax$1,100.0022%
  • Social Security and Medicare$382.507.6%

See the step-by-step solution ↓

Step-by-step solution

  1. Take a flat 22% of the bonus for federal income tax. This is the flat (percentage) method

    $5,000.00×22%=$1,100.00

  2. Social Security takes 6.2% of the bonus

    $5,000.00×6.2%=$310.00

  3. Medicare takes 1.45% of the bonus

    $5,000.00×1.45%=$72.50

  4. Subtract everything withheld to see what you take home: federal tax, Social Security and Medicare

    $5,000.00−$1,100.00−$382.50=$3,517.50

Test yourself

20 quick questions built from this calculator's formula: work out results, predict what happens when an input changes, and work backward from an answer. Every answer comes with the working.

Please note: Results are estimates for planning and comparison. Lenders, banks, and tax authorities may round differently or include fees not modeled here, so confirm figures with your provider before deciding.

What this calculator does

See how much of your bonus you'll actually take home after taxes. Bonuses, commissions and other one-off payments count as 'supplemental wages'. Your employer withholds federal income tax on them differently from your regular pay. Most employers use the flat method, which takes 22% no matter what your W-4 (your tax withholding form) says. Others add the bonus to a regular paycheck and withhold as if that bigger check were your normal pay. That's called the aggregate method, and it often takes more. Either way, Social Security and Medicare come out just as they do from your salary.

This calculator shows what each method withholds from your bonus under 2026 rules. It includes the required 37% rate on bonus pay over $1 million in a year. It also handles the Social Security wage base, the yearly earnings cap where Social Security tax stops. It covers the Additional Medicare tax for high earners, too, plus an optional state rate. You'll see your take-home amount and where the rest goes.

Where it's used

Why this math matters outside the classroom:

  • Flat withholding. Payroll withholds 22% of a $5,000 bonus, which is 0.22 × 5,000 = $1,100 of federal income tax.
  • Take-home planning. An employee subtracts 22% federal and 7.65% Social Security and Medicare to expect $3,517.50 from a $5,000 bonus.
  • Payroll processing. Payroll clerks choose between the flat rate and adding a bonus to the regular check, then explain the difference to staff.
  • Sales commissions. A salesperson paid an $8,000 quarterly commission estimates $1,760 of federal withholding at the 22% rate.
  • Tax-time surprises. Workers in the 12% bracket see why the 22% withheld from a bonus usually comes back partly as a refund.

Grade level and standards: Grade 7; Common Core State Standards for Mathematics 7.RP.A.3. © Copyright 2010. National Governors Association Center for Best Practices and Council of Chief State School Officers. All rights reserved.

How to use it

  1. Enter the gross bonus.
  2. Pick how it's paid: as a separate check (usually the flat 22%) or added to a regular paycheck. If it's added to a paycheck, enter your salary, how often you're paid and your W-4 filing status.
  3. If you like, enter the wages and bonuses you've already been paid this year, and a state withholding rate.
  4. Read your take-home bonus and the breakdown of what was withheld.

What the inputs mean

How your employer withholds
Your pay stub or HR can tell you which method your employer uses. A bonus paid on its own check, or listed as a separate line, is usually withheld at the flat rate.
Wages already paid this year (optional)
Social Security tax stops once your wages for the year reach $184,500. Additional Medicare tax starts on wages over $200,000. If you're near either line, enter what you've earned so far this year.
Other bonuses already paid this year (optional)
The 37% rate applies only to bonus pay above $1 million in the calendar year from the same employer.
State withholding rate on bonuses (optional)
Many states also set a flat rate for bonuses. Enter it if you know it. Leave it blank if your state has no income tax.

Formula and method

flat method: federal = 22% × bonus  (37% on the part over $1 million for the year)
aggregate: federal = tax(regular check + bonus) − tax(regular check)
tax(check) = 2026 bracket tax on (check × paychecks per year − standard deduction) ÷ paychecks per year
Social Security = 6.2% × bonus (only up to the $184,500 wage base)
Medicare = 1.45% × bonus  (+ 0.9% on wages over $200,000 for the year)
take-home = bonus − federal − Social Security − Medicare − state

In the formulas, tax(check) means the federal tax withheld from one paycheck of that size. The aggregate method treats the combined check as if you were paid that much every pay period. On paper, that pushes your yearly income into higher tax brackets. So the withholding on the bonus part can top 22%.

To estimate it, the calculator turns each check into a full year's pay. Then it takes off the 2026 standard deduction and applies the 2026 brackets. This closely follows the IRS percentage-method tables, and it's the same approach the paycheck calculator uses.

Whatever is withheld, your bonus is taxed as ordinary income on your tax return. If too much was withheld, you get it back as a refund. If too little was withheld, you owe the difference.

Worked example

You receive a $5,000 bonus paid as a separate check, withheld at the flat rate, with no state income tax and wages well under the Social Security wage base.

  1. Federal income tax: 22% × $5,000 = $1,100.
  2. Social Security: 6.2% × $5,000 = $310.
  3. Medicare: 1.45% × $5,000 = $72.50.
  4. Take-home: $5,000 − $1,100 − $382.50 = $3,517.50.

Result: You keep $3,517.50, or 70.35% of the bonus. Now suppose it were added to a single filer's paycheck instead, on a $60,000 salary paid every two weeks. Federal withholding would be about $1,127.46 (22.55%).

Understanding the result

Withholding isn't your final tax. If your top tax bracket is 12%, the flat 22% takes too much, and you'll likely get some back at tax time. In the 32% bracket or higher, 22% takes too little, and you may owe.

If a bonus will leave you short, you can raise withholding on later paychecks with a new W-4, or make an estimated payment. If too much is being withheld, think about adjusting your W-4 for the rest of the year.

Contributing part of a bonus to a traditional 401(k), if your plan allows it, lowers the income tax withheld on that part.

Assumptions and limitations

  • Tax year 2026: the 22% and 37% supplemental rates from IRS Publication 15 (2026), the 2026 brackets and standard deduction, the $184,500 Social Security wage base and Medicare rates.
  • The aggregate method is estimated from a full year's pay, the 2026 brackets and the standard deduction for your W-4 filing status. No other W-4 adjustments are included.
  • The state rate is a single flat percentage of the bonus.
  • This is an estimate, not tax advice. Your employer's payroll system and the IRS withholding tables in Publication 15-T are the official figures.
  • It doesn't include W-4 Step 2, Step 3 or Step 4 entries, pre-tax deductions from the bonus, local taxes or state bonus rules.
  • If no income tax was withheld from your regular wages this year or last year, your bonus must use the aggregate method. The calculator doesn't check for that.

Frequently asked questions

Why are bonuses taxed at 22%?

They aren't really taxed more than other pay. 22% is just the IRS's flat withholding rate for supplemental wages, like bonuses. On your tax return, your bonus is added to your other income and taxed at your normal rates. So you may get some back, or owe a bit more.

What is the bonus tax rate in 2026?

Federal withholding is 22% on supplemental wages up to $1 million in the year and 37% above that. Social Security (6.2%, up to $184,500 of wages) and Medicare (1.45%) are withheld too.

Is the aggregate method worse than the flat rate?

It often withholds more on a large bonus, because the combined check looks like a much higher salary. But withholding is only a prepayment. Your actual tax is the same either way, and it's settled on your return.

Can I lower the tax on my bonus?

Putting some of it into a traditional 401(k) or HSA (health savings account) through payroll, where allowed, lowers your taxable income. Beyond that, your income tax depends on your total income for the year, not on how the bonus was withheld.

Sources

How this calculator is checked

Method: IRS Publication 15 (2026), section 7 (22% optional flat rate, mandatory 37% over $1 million, aggregate procedure); aggregate method approximated with the 2026 brackets and standard deduction from Rev. Proc. 2025-32; FICA rates and the $184,500 wage base (figures in src/lib/finance/tax-2026.ts). The calculation is covered by automated tests with known reference values and edge cases. Last updated 2026-10-18. Found a problem? Tell us.

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