Bonuses aren't taxed at a higher rate than your salary. Federal percentage-method withholding often misses your actual marginal bracket, and the difference reconciles at filing. This calculator combines that withholding estimate with your entered state rate and the bonus's estimated incremental annual FICA liability.
2026 federal rules + your employer's state rate; actual paycheck timing can differ
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Your projected regular wages for the year, excluding this bonus and prior supplemental wages.
Bonuses, commissions, and other supplemental wages paid earlier this year by this employer, including related businesses under common control. Exclude this bonus and regular salary.
Used for the joint federal reconciliation and Additional Medicare liability only. Enter 0 unless filing jointly.
%
Use the rate from your employer or payroll provider. Enter 0 if no state withholding applies.
Federal withholding assumes the IRS percentage method. The calculator applies 22% until this employer's calendar-year supplemental wages reach $1,000,000, then 37% to only the excess. State rules and payroll methods vary, so the calculator uses the percentage you enter instead of guessing from your state. FICA is modeled as incremental annual liability using annual salary as the baseline; payroll uses actual year-to-date wages, so the check can differ.
Estimated Net Bonus
$0
- after modeled amounts
Modeled Taxes & Withholding
$0
- of bonus
Federal Withholding Gap
$0
bonus portion over / under
Federal and state rows estimate withholding. FICA rows estimate incremental annual liability; actual employer deductions depend on wages already paid when the bonus runs.
Pinned
Modeled Withholding and Annual FICA
Gross bonus
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Federal supplemental withholding (22%)
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State supplemental withholding (0%)
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Estimated incremental annual Social Security liability (6.2% to $184,500)
FICA timing note: employers stop Social Security withholding based on actual year-to-date wages and begin Additional Medicare withholding after wages paid exceed $200,000, regardless of filing status. This annual planning estimate instead uses the filing-status liability threshold; a difference is reconciled on the tax return.
At Tax Filing (Year-End Reconciliation)
Supplemental withholding may overshoot or undershoot what you actually owe. Here's the math based on the entered full-year household wage income.
Federal tax owed on bonus portion (your marginal rate)
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Federal tax already withheld on bonus
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Bonus-specific federal withholding gap
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This shows the bonus-specific reconciliation. Your overall refund or balance due also depends on regular-paycheck withholding, deductions, and credits not modeled here.
What the withholding number actually means
The federal and state withholding rows estimate the income tax removed from the bonus under the methods selected here. The FICA rows are different: they estimate how much the bonus adds to annual Social Security and Medicare liability after regular salary and prior supplemental wages. Your employer instead uses wages actually paid at the time of the bonus, so the real check can differ. The federal reconciliation compares percentage-method withholding with the federal income tax attributable to the bonus under the canonical 2026 brackets. Change the salary and bonus inputs to see whether the entered scenario is over- or underwithheld. When the payment posts, the pay-stub guide can help you locate the supplemental earnings, tax codes, deductions, and updated year-to-date totals.
Underpayment rules apply to the full return, not just this bonus. For many taxpayers, the required annual payment is generally the smaller of 90% of current-year tax or 100% of prior-year tax; the prior-year percentage generally becomes 110% when prior-year AGI exceeded $150,000 ($75,000 if married filing separately). Withholding timing, uneven-income rules, credits, and other exceptions can change the result, so use Form 1040-ES or Publication 505 before making an estimated payment.
The math behind this calculator (click to expand)
Federal supplemental withholding is a two-tier percentage method per IRS Publication 15: 22% until supplemental wages paid by the employer during the calendar year reach $1,000,000, then 37% on only the excess. The prior-supplemental-wages input lets a bonus cross that threshold correctly. State withholding is calculated as bonus * entered_state_rate. The entered rate should come from your employer or payroll provider because state and employer methods vary.
The FICA rows calculate incremental annual liability: projected liability on regular salary plus prior supplemental wages plus this bonus, minus projected liability before this bonus. Social Security is 6.2% up to the $184,500 wage base (2026). Medicare is 1.4500000000000002% on all modeled wages, plus 0.8999999999999999% above the final-liability threshold of $200,000 single or head of household and $250,000 married filing jointly. Employer withholding timing differs: actual year-to-date wages control the Social Security cap, and employers start Additional Medicare withholding after paying more than $200,000 regardless of filing status. The federal reconciliation separately re-runs annual federal income-tax liability with the bonus stacked on the income baseline.
Why your bonus check feels smaller than your salary
Every January and June there's a wave of "my bonus got taxed at 40 percent" posts on Reddit and Twitter. The math is real, but the framing is wrong. Bonuses aren't taxed at a higher rate. They're withheld at a different rate, and that difference gets reconciled when you file your tax return.
The 22% federal withholding rule
The IRS classifies bonuses, commissions, severance, retroactive pay, and certain other payments as supplemental wages. Under the percentage method, an employer withholds 22% until its calendar-year supplemental wages to the employee reach $1,000,000; only the excess is withheld at 37%.
Why 22% can be too much or too little
The percentage method is withholding, not a separate bonus tax bracket. If the federal tax attributable to the bonus under your full-year bracket calculation is below the amount withheld, the difference can increase a refund or reduce a balance due. If it is higher, the bonus can leave a payment gap. The calculator shows that federal comparison from the salary, prior supplemental wages, bonus, and filing status you enter.
State supplemental withholding
There is no reliable one-rate lookup that describes every bonus check. Depending on the state and employer, payroll may use a published supplemental percentage, the regular wage-withholding tables, or an aggregate calculation. Local payroll taxes can add another layer. Use the percentage shown by your employer's payroll estimate or ask payroll which method it uses; enter zero only when no state withholding applies. The state amount here estimates what leaves this check, not your final state income-tax liability.
FICA liability and paycheck timing are not the same view
This page estimates the bonus's incremental annual Social Security and Medicare liability. Payroll works from actual wages paid year to date: Social Security withholding continues until those wages reach the $184,500 cap for 2026, and employer Additional Medicare withholding starts after wages paid exceed $200,000 regardless of filing status. Final Additional Medicare liability uses a $200,000 threshold for single and head-of-household filers and $250,000 for married couples filing jointly, so withholding and liability can differ and reconcile on the return. Multiple-employer Social Security overwithholding can also be addressed on the tax return.
The aggregate method - when employers don't use 22%
An employer can use the aggregate method instead of the separate percentage method when the IRS rules permit it. The bonus is combined with regular wages and processed through withholding tables, so the result may differ materially from this calculator. Ask payroll which method it uses if a bonus estimate looks unexpected.
What might change in the next 24 months
Federal supplemental-withholding rules can change through legislation or IRS guidance. Before relying on a future-year bonus estimate, verify the current Publication 15 and update the canonical constants that power this page.
State withholding instructions and employer payroll methods can change, so confirm the percentage when a bonus is scheduled rather than relying on an old state-rate table. The Social Security wage base also climbs annually with the National Average Wage Index ($184,500 in 2026, up from $176,100 in 2025), so a bonus paid early in the year may face Social Security withholding that a later payment does not, depending on actual year-to-date wages.
Are bonuses taxed at a higher rate than regular pay?
No - and this is the most common misconception about bonus tax. Bonuses are taxed at the same rates as your regular wages once you file your annual return. What feels different is the withholding rate. Under the federal percentage method, withholding is 22% until supplemental wages from the employer reach $1,000,000 for the calendar year, then 37% on the excess, regardless of your normal bracket. If your marginal rate differs from withholding, the difference is reconciled at filing.
What's the federal supplemental withholding rate for 2026?
The IRS percentage method uses 22% until supplemental wages paid by the employer during the calendar year reach $1,000,000. Only the portion above $1,000,000 is subject to mandatory 37% withholding. Payments from businesses under common control are included in the employer's year-to-date total.
How is bonus tax different from regular paycheck withholding?
Regular paycheck withholding uses IRS withholding tables that approximate your annual liability based on filing status, W-4 inputs, and pay frequency. Separately identified supplemental wages may use the 22% federal percentage method, while the aggregate method combines the bonus with regular wages for withholding-table purposes. Ask payroll which method applies to your payment.
Will I get a refund on the difference, or owe more?
It depends on your full-year income and marginal bracket. If your marginal federal rate is below 22%, the federal withholding may overshoot; if it is above 22%, it may undershoot. The At Tax Filing card estimates only the federal bonus reconciliation. Your state refund or balance depends on that state's tax rules, deductions, credits, and the rest of your withholding, so it is not modeled here.
Are state taxes withheld from a bonus the same way?
Not necessarily. State rules and employer payroll methods vary: a bonus may use a published supplemental percentage, regular withholding tables, an aggregate method, or no state wage withholding. Enter the percentage your employer or payroll provider will apply, ideally from a pay-stub estimate or payroll documentation. Do not substitute a state's top income-tax rate unless that is the rate payroll actually uses.
What about FICA (Social Security and Medicare)?
The calculator estimates the bonus's incremental annual FICA liability using your regular annual wages plus prior supplemental wages as the employee-level baseline; spouse wages do not use your Social Security wage base. Social Security is 6.2% up to the $184,500 wage base for 2026; Medicare is 1.4500000000000002%, plus 0.8999999999999999% above the final-liability threshold ($200,000 single or head of household; $250,000 married filing jointly). The separate spouse-wages input affects the joint federal and Additional Medicare liability estimate, but not your Social Security calculation. Actual payroll timing can differ because employers use wages actually paid year to date.
This calculator is for educational purposes. Income-tax withholding is estimated; FICA is modeled as incremental annual liability. Actual paycheck deductions depend on your employer's payroll method, wages paid year to date, and W-4 settings. Consult a tax professional for advice specific to your situation.