# How much bonus tax will I pay?

Computes the federal income tax withheld from a bonus (flat 22% or the aggregate method, 37% over $1 million), Social Security, Medicare, and state tax, and the bonus you take home.

- Page: https://www.acalculator.org/finance/bonus-tax-calculator
- JSON spec: https://www.acalculator.org/finance/bonus-tax-calculator.json
- Version: 2efcbcc287be

## Default answer

Example with the default inputs (Bonus $5,000.00, Withholding method Flat 22%, State tax rate on bonuses 0%, Wages paid so far this year $0.00, Bonuses paid so far this year $0.00, Pay date September 30, 2026) on the example date Wednesday, September 30, 2026: On a $5,000.00 bonus, you take home $3,517.50 after $1,482.50 of taxes.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| bonus | Bonus | The gross bonus, commission, or other supplemental pay. |
| method | Withholding method | Flat: 22% of the bonus, used when the bonus is paid separately. Aggregate: the bonus is added to a regular paycheck and withheld as one payment. |
| wages | Regular taxable wages a paycheck | Taxable wages of the regular paycheck the bonus is added to (aggregate method). |
| freq | Pay frequency | How often you are paid (aggregate method). |
| status | Filing status (W-4) | The filing status on your Form W-4 (aggregate method). |
| twoJobs | W-4 Step 2 box checked | The two-jobs box in Step 2 of your Form W-4 is checked (aggregate method). |
| step3 | W-4 Step 3 amount | The Step 3 dependents total on your Form W-4 (aggregate method). |
| stateRate | State tax rate on bonuses | Your state’s income tax rate on supplemental pay, as a percent (0 in states with no income tax). |
| ytd | Wages paid so far this year | All wages this employer paid you this year before the bonus, for the Social Security wage base and the Additional Medicare threshold. |
| ytdBonus | Bonuses paid so far this year | Supplemental wages this employer paid you this year before this bonus, for the $1 million rule. |
| date | Pay date | The date the bonus is paid: its year picks the tax rates. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| net | Bonus after tax | The bonus less all taxes withheld. |
| federal | Federal income tax | Federal income tax withheld from the bonus. |
| socialSecurity | Social Security | 6.2% of the bonus, up to the year’s wage base. |
| medicare | Medicare | 1.45% of the bonus, plus 0.9% of the part that takes the year’s wages over $200,000. |
| state | State tax | The bonus times the state rate typed. |
| taxes | Total taxes | All taxes withheld from the bonus. |
| share | Share withheld | Total taxes as a percent of the bonus. |
| rates | Tax year | The tax year of the rates used. |

## Method

Flat: federal = 22% × the bonus, and 37% on the part that takes the year’s supplemental wages over $1,000,000. Aggregate: federal = Pub 15-T withholding on (regular wages + bonus) − withholding on the regular wages alone. Social Security = 6.2% of the bonus up to the $184,500 wage base; Medicare = 1.45%, plus 0.9% on wages over $200,000 in the year. State = bonus × state rate. Take-home = bonus − all of them.

## Assumptions

- An estimate, not tax advice. Withholding is not the final tax: the bonus is taxed with the rest of your income on your return.
- The flat 22% applies only when the bonus is paid separately or shown apart from regular wages and income tax was withheld from your regular wages this year or last year.
- The aggregate method here adds the bonus to one regular paycheck and uses the 2026 percentage method for a 2020 or later Form W-4.
- State tax is a single rate you type: states set their own supplemental rates, and some tax bonuses as regular pay. Local taxes, 401(k) deferrals from the bonus, and the Additional Medicare Tax owed on a joint return are not modelled.

## Worked examples

1. bonus = $5,000.00, method = flat, date = 2026-12-15 gives federal = $1,100.00, socialSecurity = $310.00, medicare = $72.50, taxes = $1,482.50, net = $3,517.50. Source: IRS Pub 15 (2026) section 7 (22% flat rate) and section 9 (6.2% and 1.45%).
2. bonus = $1,500,000.00, method = flat, ytd = $200,000.00, date = 2026-12-15 gives federal = $405,000.00, socialSecurity = $0.00, medicare = $35,250.00, net = $1,059,750.00. Source: IRS Pub 15 (2026) section 7: 37% mandatory on supplemental wages over $1,000,000; section 9: no Social Security above $184,500, 0.9% Additional Medicare over $200,000.
3. bonus = $3,000.00, method = aggregate, wages = $2,000.00, freq = biweekly, status = single, stateRate = 5%, date = 2026-12-15 gives federal = $610.54, socialSecurity = $186.00, medicare = $43.50, state = $150.00, net = $2,009.96. Source: IRS Pub 15 (2026) section 7 aggregate procedure with Pub 15-T (2026) Worksheet 1A.
4. bonus = $10,000.00, method = flat, ytd = $180,000.00, ytdBonus = $995,000.00, date = 2026-12-15 gives federal = $2,950.00, socialSecurity = $279.00, medicare = $145.00, net = $6,626.00. Source: IRS Pub 15 (2026) sections 7 and 9: $5,000 at 22% and $5,000 over $1,000,000 at 37%; Social Security on the $4,500 left under $184,500.

## FAQ

### How much tax is taken out of a bonus?

When a bonus is paid on its own, most employers withhold a flat 22% federal income tax, plus 6.2% Social Security and 1.45% Medicare, plus your state’s rate. On a $5,000 bonus that is $1,100 + $310 + $72.50 = $1,482.50 before state tax.

### Why is my bonus taxed at a higher rate than my paycheck?

It is withheld at a different rate, not taxed at one. Withholding is only a prepayment. On your tax return the bonus is added to your other income and taxed at your normal rates, so if 22% was too much you get the difference back as a refund, and if it was too little you owe it.

### What is the aggregate method?

The employer adds the bonus to a regular paycheck and withholds as if the total were your usual pay, then takes off what it would have withheld from the regular pay alone. Because the combined amount looks like a much higher salary, the aggregate method often withholds more than 22%.

### What happens with bonuses over $1 million?

Once your supplemental wages from one employer pass $1,000,000 in a year, the employer must withhold 37% on the part over $1,000,000, whatever your Form W-4 says.

### Does Social Security tax apply to my bonus?

Yes, until your wages for the year reach the Social Security wage base, $184,500 in 2026. Medicare applies to all of it, and once your wages from the employer pass $200,000 in the year, 0.9% Additional Medicare Tax is withheld on the part over $200,000.

### How do states tax bonuses?

Each state sets its own rule. Many have a flat supplemental rate; others withhold on bonuses as on regular pay; states with no income tax take nothing. Type your state’s rate to include it.

## Sources

- IRS, Publication 15 (2026), (Circular E), Employer’s Tax Guide, section 7 "Supplemental Wages" (22% optional flat rate; 37% mandatory over $1,000,000; aggregate procedure) and section 9 (Social Security 6.2% to $184,500, Medicare 1.45%, Additional Medicare 0.9% over $200,000). https://www.irs.gov/pub/irs-pdf/p15.pdf
- IRS, Publication 15-T (2026), Worksheet 1A and the Annual Percentage Method tables (aggregate method). https://www.irs.gov/pub/irs-pdf/p15t.pdf