Bonus Tax Calculator 2026: What Your Bonus Really Pays

    See exactly how much tax comes out of your bonus in 2026. We apply the IRS 22% flat supplemental rate (percentage method), state supplemental rates, Social Security, and Medicare — and compare it to the aggregate method, side by side.

    Tax data last reviewed: · Maintained by The Snap Pay Team against IRS and state agency sources

    Your Bonus

    Enter your bonus amount and a few details about your year.

    $
    $
    $

    Your Bonus After Tax

    Compares the IRS percentage method (22% flat) with the aggregate method (marginal rate).

    Percentage method (most common)

    Net bonus$3,006.00
    Total tax withheld$1,994.00 (39.88%)
    Federal supplemental (22%)
    $1,100.00
    State tax (10.23% supplemental)
    $511.50
    Social Security (6.2%)
    $310.00
    Medicare (1.45%)
    $72.50

    Aggregate method (marginal rate)

    Net bonus$3,069.56
    Total tax withheld$1,930.44 (38.61%)

    Estimates withholding as if the bonus were added to your regular paycheck and taxed at your marginal federal and state brackets.

    Which will my employer use?

    Most US employers use the percentage method for bonuses paid separately from regular wages — it's simpler. If the bonus is combined with a regular paycheck, the aggregate method typically applies. Either way, your actual tax liability is settled on your annual tax return — over-withholding comes back as a refund.

    How Bonuses Are Taxed in 2026

    The IRS classifies bonuses as supplemental wages under Treasury Regulation 31.3402(g)-1. Employers can withhold federal tax two ways: the percentage method, which applies a flat 22% to the bonus (37% on the portion above $1 million per year), or the aggregate method, which lumps the bonus with your regular paycheck and withholds at your marginal bracket.

    On top of federal withholding, every bonus is subject to Social Security (6.2%, up to the $184,500 wage base) and Medicare (1.45%, plus 0.9% additional Medicare tax on wages above $200,000 for single filers). Most states add their own withholding — some at a flat supplemental rate, others at marginal brackets. This is why a $10,000 bonus in Texas nets around $7,035 while the same bonus in California nets closer to $6,012.

    The most important thing to know: withholding is not your final tax bill. Any over-withheld amount comes back as a refund when you file your annual return. If your marginal rate is below 22%, you'll get a refund on the difference; if it's above 22%, you may owe more.

    The Two Bonus Withholding Methods

    Your employer picks the method. The percentage method is far more common on separate bonus checks.

    Percentage Method (Flat 22%)

    Bonus is treated as a separate payment. Federal withholding is a flat 22% (37% above $1M). Simple to administer, easy to predict. Overwhelmingly used when bonuses are paid on a separate check.

    Example: $5,000 bonus → $1,100 federal, $310 SS, $72.50 Medicare = $3,517.50 net (in a no-tax state).

    Aggregate Method (Marginal Rate)

    Bonus is added to your regular paycheck and withheld at your marginal bracket. Used when the bonus is bundled with regular wages, or when the employer chooses this method. Can lead to spikes in withholding for high earners.

    Example: $5,000 bonus at a 24% marginal bracket → $1,200 federal + FICA = ~$3,417.50 net.

    Formula (percentage method): Net Bonus = Gross Bonus − (22% Federal) − State Supplemental − (6.2% SS) − (1.45% Medicare)

    $10,000 Bonus Examples by State

    Same bonus, dramatically different take-home depending on where you work.

    $10,000 in Texas

    No state income tax. Percentage method.

    Gross Bonus$10,000
    Federal (22%)−$2,200
    State Tax$0
    FICA (7.65%)−$765
    Net Bonus$7,035

    $10,000 in California

    10.23% state supplemental rate.

    Gross Bonus$10,000
    Federal (22%)−$2,200
    CA State (10.23%)−$1,023
    FICA (7.65%)−$765
    Net Bonus$6,012

    $10,000 in New York

    11.5% state supplemental rate.

    Gross Bonus$10,000
    Federal (22%)−$2,200
    NY State (11.5%)−$1,150
    FICA (7.65%)−$765
    Net Bonus$5,885

    When Should You Use This Calculator?

    Use this calculator any time you're promised a bonus and need to know what will actually reach your bank account. It's essential for planning large purchases (down payment, tuition), balancing debt payoff against savings, and setting realistic expectations before payday.

    It's also useful during salary negotiations. A $10,000 signing bonus in California nets you thousands less than the same offer in Texas — knowing that math up front helps you negotiate a higher gross to match your target net.

    For a regular paycheck, use the reverse salary calculator or the take-home budget planner. Compare bonus outcomes across states with the state comparison tool.

    Frequently Asked Questions

    Important Disclaimer

    This calculator provides estimates only and should not be considered financial or tax advice. Actual amounts may vary based on your specific situation, employer policies, and current tax laws. For personalized advice, please consult a qualified tax professional or financial advisor.