Bonus tax calculator

How it works

When a bonus is paid separately from your regular wages, IRS Publication 15 lets your employer withhold federal income tax at a flat 22%, with 37% mandatory on supplemental pay over $1,000,000 in a year. Social Security takes 6.2% until your wages for the year reach $184,500, and Medicare takes 1.45% of all of it, plus 0.9% on wages past $200,000. Your year-to-date wages decide whether those caps and thresholds apply.

Most states publish a flat rate for bonuses, and the calculator applies it. New York's 11.70% is the highest of them, and New York City residents can tick a box to add the city's 4.25%. Vermont withholds 30% of the federal amount, which is 6.6% at the 22% rate. Connecticut, Delaware, the District of Columbia, Hawaii, New Jersey, and West Virginia use only the aggregate method, and the calculator points you to that state's paycheck calculator.

Withholding is a prepayment. If 22% is more than your actual tax rate, the difference comes back when you file, and if it is less, you owe the gap. State payroll premiums such as California SDI and pre-tax 401(k) deferrals from the bonus are left out of this estimate.

Frequently asked

How much are bonuses taxed?

A bonus paid on its own check is withheld at 22% federal income tax, 6.2% Social Security, and 1.45% Medicare, which totals 29.65% before state tax. Your state then adds its flat bonus rate, from nothing in states without income tax up to 11.70% in New York. Social Security stops once your wages for the year pass $184,500. Enter your bonus above for the exact split.

Why are bonuses taxed so high?

They are withheld at a flat rate, and that can look high next to a regular paycheck. Federal withholding on a separate bonus check is a flat 22% whatever your bracket, and Social Security, Medicare, and state tax come on top. The final tax on a bonus is the same as on any other wages, set by your bracket when you file, so over-withholding comes back as a refund.

What is the federal bonus tax rate for 2026?

22% for supplemental wages paid separately, under IRS Publication 15. Once your supplemental wages for the year pass $1,000,000, the amount above that is withheld at a mandatory 37%. Your employer may also use the aggregate method, adding the bonus to a regular paycheck and withholding on the total through the normal tables, which can produce a higher or lower amount than 22%.

Which states have a flat bonus tax rate?

Most states with an income tax publish one, and this calculator applies it, such as California's 10.23% and New York's 11.70%. Nebraska's rate fell from 5% to 3.5% for 2026. Vermont withholds 30% of the federal bonus withholding. Connecticut, Delaware, DC, Hawaii, New Jersey, and West Virginia add the bonus to regular wages and withhold on the total, so use their state paycheck calculators.

Can I put my bonus in my 401(k)?

Often, if your plan allows deferrals from bonuses. A traditional 401(k) deferral is excluded from federal income tax withholding, and from state withholding in most states, but Social Security and Medicare still apply to it. Deferrals count toward the 2026 employee limit of $24,500. This calculator does not model bonus deferrals, so its result assumes the full bonus is paid to you.