Bonus Tax Calculator US 2026
Bonuses feel over-taxed because employers withhold a flat 22% federal plus FICA. But that is only withholding. This calculator shows both numbers: your bonus check today, and what the bonus really costs you after filing.
| Federal withholding (flat 22%) | $2,200 |
|---|---|
| Social Security (6.2% up to the wage base) | $620 |
| Medicare (1.45% + 0.9% over $200k) | $145 |
| Total withheld from the bonus | $2,965 |
| Bonus check (net) | $7,035 |
- Bonuses are not taxed at a special rate. The 22% is only the withholding. Your true tax is your marginal rate; the difference settles in your refund or bill.
- Assumptions: single filer, standard deduction, bonus paid as a separate check (percentage method), 2026 figures.
The myth: "bonuses are taxed at 40%"
There is no special bonus tax rate. The IRS lets employers withhold supplemental wages at a flat 22% (37% above $1 million), plus Social Security and Medicare, which can make the check look heavily taxed. At filing time the bonus is just ordinary income taxed at your marginal bracket. If your bracket is 22%, withholding was roughly right; if it is 12%, the excess comes back as refund; if 32%, you will owe the difference.
Ways to keep more of a bonus
- 401(k): many plans let you set a separate deferral percentage for bonuses, and deferring shields it at your marginal rate (2026 limit $24,500).
- HSA top-up: if eligible, $4,400/$8,750 of triple-tax-free room.
- Timing: a January bonus lands in a new tax year, relevant if your income is dropping.
See your full-year picture in the paycheck calculator; brackets in the 2026 brackets guide.
Frequently asked questions
How is a bonus taxed in the US?
Employers withhold federal income tax from bonuses using either the flat supplemental rate (22 percent for amounts up to $1 million) or the aggregate method, which adds the bonus to your regular wages and withholds at the blended rate.
Can I reduce tax on my bonus by putting it in a 401(k)?
Yes. Contributing part or all of a bonus to a traditional 401(k) reduces your taxable income for the year, subject to the annual contribution limit ($23,500 in 2026, or $31,000 if you are aged 50 or over).
Is the bonus tax method the same in all states?
No. Each state handles supplemental wages differently. Some follow the federal flat-rate method, others require aggregate withholding, and states with no income tax have no withholding. Select your state for a state-specific estimate.