Bonus tax calculator
Bonuses are withheld at a flat 22% federal rate, but taxed at your real bracket. See what comes out of the check, what you keep, and whether you’ll get some back in April.
Keep 70% of the bonus. State figure is the tax the bonus adds at your state rates; your employer may withhold a state supplemental rate instead.
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An AI explainer reads the figures on this page and answers in plain English. Your question and inputs are sent to it only when you press Ask; nothing is stored.
Withheld vs. actually owed
Withholding is a down payment, not the final bill. With your salary of $80,000, the bonus lands in your 22% bracket.
| On the bonus | Withheld | Really owed |
|---|---|---|
| Federal income tax | $2,200 | $2,200 |
| Social Security + Medicare | $765 | $765 |
$0 over-withheld: comes back as part of your refund.
How bonuses are taxed
The IRS calls bonuses, commissions and severance supplemental wages. Employers can withhold federal tax on them two ways (IRS Publication 15):
- Percentage method: a flat 22%, or 37% on the part of supplemental wages above $1 million for the year. Most large employers use this.
- Aggregate method: bonus plus regular pay, withheld as one big paycheck. Withholding can run well above 22% this way.
Either way, Social Security (6.2% up to $184,500 of wages) and Medicare (1.45%) apply. When you file, the bonus simply joins your other wages; the income tax calculator and refund estimator show the full-year picture. Got overtime instead? See the overtime tax calculator.
Questions people ask
How much tax is taken out of a bonus?
If your employer pays the bonus separately from your regular wages (or identifies it separately), it usually withholds a flat 22% federal income tax, plus 6.2% Social Security and 1.45% Medicare, plus any state withholding. On bonus pay above $1 million in a year, federal withholding is a mandatory 37%.
What is the bonus tax rate for 2026?
There is no special tax rate for bonuses. They are ordinary wages and are taxed at your normal bracket when you file. The 22% figure is only the federal withholding rate for supplemental wages (IRS Publication 15). If your real marginal rate is lower, you get the difference back as a refund; if higher, you owe it.
What is the aggregate method?
The employer adds the bonus to a regular paycheck and withholds as if that larger amount were your normal pay every period. That annualises the spike, so withholding on a bonus paid this way often looks much higher than 22%. The tax you actually owe at filing time is the same either way.
Are bonuses taxed more than regular pay?
No. Bonuses can look over-taxed because of how withholding works, but on your return a bonus dollar is taxed exactly like a salary dollar. This calculator shows both: what will be withheld from the check and what the bonus really adds to your annual tax.
Can I lower the tax on my bonus?
Contributing part of the bonus to a traditional 401(k), if your plan allows deferral from bonuses, avoids federal income tax on that part. Social Security and Medicare still apply. Remember the 2026 employee 401(k) limit is $24,500.