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How to use the bonus tax calculator
- Enter the bonus amount, or switch to the take-home amount you want.
- Choose the flat 22% method, or the aggregate method with your bracket rate as an estimate.
- Add your state withholding rate if you know it.
- Optionally enter the wages and bonuses you have been paid so far this year, for the Social Security cap, the Additional Medicare Tax and the 37% rate over $1 million.
- Read the take-home and each line of withholding, then copy or print it.
How is a bonus taxed?
Federal income tax withholding is the bonus times 22% for the flat method, or times the bracket rate you enter as an estimate for the aggregate method. The part of your supplemental wages over $1 million in the year is withheld at 37%. Social Security is 6.2% of the bonus up to the $184,500 wage base for 2026, less the wages you have already been paid. Medicare is 1.45% with no limit, and the 0.9% Additional Medicare Tax applies to wages over $200,000 in the year. State tax is the flat rate you enter. All of these are withholding, not the tax you finally owe.
For example, a $5,000 bonus paid separately with the flat 22% method has $1,100.00 of federal income tax withheld, $310.00 of Social Security and $72.50 of Medicare, so about $3,517.50 reaches you before state tax. To take home $3,000, the bonus has to be about $4,264.38. The bonus is made up; yours comes from what you type.
Who should use the bonus tax calculator
- Employees who got a bonus and want to know what they will take home
- Employers and payroll staff estimating withholding on a bonus
- Anyone grossing up a bonus to a net amount
Who should not use this
- Anyone who needs exact withholding; the aggregate method depends on your employer’s tables and your W-4
- Anyone who needs their final tax; withholding is settled on your return
- Anyone in a state with special bonus rules, who should check their state revenue department
Limitations
- Federal and payroll taxes only. State and local tax is a flat rate you enter.
- The aggregate method is an estimate from a bracket rate you enter, not your employer’s table.
- Uses 2026 Social Security and Medicare figures from IRS Publication 15.
- Results are estimates, not legal, tax, payroll or financial advice.
- Nothing is uploaded or stored on a server. Clearing your browser data also removes the saved profile.
How is a bonus taxed?
A bonus is taxed as wages. The IRS calls it supplemental wages, and the employer withholds federal income tax by one of two methods, plus Social Security (6.2%) and Medicare (1.45%). On a $5,000 bonus paid with the flat 22% method, that is $1,100.00 of federal income tax, $310.00 of Social Security and $72.50 of Medicare, so about $3,517.50 reaches you before any state tax. That is 29.6% of the bonus.
A bonus is not taxed at a special higher rate. It is income for the year like the rest of your pay. What differs is how much tax is withheld from the payment, which is a prepayment settled on your return.
Flat 22% or the aggregate method: which one is used?
The employer chooses, within the IRS rules in Publication 15. The flat method withholds a flat 22% on a bonus that is identified separately from regular wages, and it can only be used if the employer withheld income tax from the employee’s regular wages in the current or the preceding calendar year. The aggregate method adds the bonus to the regular wages for the current or the preceding payroll period, works out withholding as if the total were one regular payment, and then subtracts the tax already withheld from the regular wages.
| Flat method | Aggregate method | |
|---|---|---|
| Rate | 22%, no other percentage allowed | Whatever the paycheck tables give on the combined pay |
| When used | Bonus identified separately from regular wages | Bonus paid with regular pay, or when flat is not allowed |
| Depends on your W-4 | No | Yes |
| Typical effect | Same rate for everyone | Can be higher or lower than 22% |
The calculator uses 22% for the flat method. For the aggregate method it takes a bracket rate you enter, since the exact figure comes from your employer’s withholding tables and your W-4, which this page does not have. At a 24% rate the same $5,000 bonus has $1,200.00 of federal withholding and leaves $3,417.50.
How much is a bonus after tax?
The table shows the take-home from common bonus sizes under the flat 22% method with Social Security and Medicare, before any state tax and assuming you are under the Social Security wage base.
| Bonus | Federal 22% | Social Security 6.2% | Medicare 1.45% | Take-home | Withheld |
|---|---|---|---|---|---|
| $500 | $110.00 | $31.00 | $7.25 | $351.75 | 29.6% |
| $1,000 | $220.00 | $62.00 | $14.50 | $703.50 | 29.6% |
| $2,000 | $440.00 | $124.00 | $29.00 | $1,407.00 | 29.6% |
| $5,000 | $1,100.00 | $310.00 | $72.50 | $3,517.50 | 29.6% |
| $10,000 | $2,200.00 | $620.00 | $145.00 | $7,035.00 | 29.6% |
| $25,000 | $5,500.00 | $1,550.00 | $362.50 | $17,587.50 | 29.6% |
| $50,000 | $11,000.00 | $3,100.00 | $725.00 | $35,175.00 | 29.6% |
Add your state’s withholding rate in the calculator if you know it. Some states withhold at a flat rate on bonuses, some use their own tables and a few have no income tax. Check your state revenue department for yours.
How big a bonus do you need to take home a set amount?
Switch the calculator to “the bonus I need for a take-home amount”. Because about 29.6% of a bonus goes to withholding under the flat method, a bonus has to be larger than the amount you want to keep. To take home $3,000, the gross bonus is $4,264.38 at a flat 22% with no state tax: $4,264.38 less $1,264.38 of tax. Employers use the same step to “gross up” a bonus so that the employee receives a stated net amount.
What happens to bonuses over $1 million?
Supplemental wages above $1 million in a calendar year are withheld at 37% on the excess, whatever the employee’s W-4 says. A $200,000 bonus paid after $900,000 of earlier supplemental wages has $100,000 over the line, so federal withholding is 22% of $100,000 plus 37% of $100,000, which is $59,000. Enter your bonuses so far this year in the optional field to include it.
Is the tax withheld on a bonus the tax you owe?
No. Withholding is an advance payment. The bonus is added to your income for the year and your actual tax is worked out on your return at your ordinary rates, so a refund or a balance due can follow. If the withholding is more than the tax your bonus actually adds, you get the difference back on your return; if it is less, you may owe more. A bonus can also push part of your income into a higher bracket, but only the part above the line is taxed at the higher rate.
If your withholding is off, you can change your Form W-4 for future pay. That does not change how the bonus itself is withheld.
Common bonus tax mistakes
Most bonus tax surprises come from mixing up withholding with the tax owed, or from leaving out payroll taxes.
- Thinking a bonus is taxed at a higher rate. It is withheld differently, but taxed as ordinary income on the return.
- Using 22% when the bonus is paid with a regular paycheck and the aggregate method applies.
- Forgetting Social Security and Medicare, which add 7.65% on top of the income tax withholding.
- Ignoring state and local tax.
- Applying the Social Security cap to a bonus when wages so far are under the wage base.
- Treating the net amount as the final tax result.
Sources and review
Reviewed on 01 Nov 2026 against the published sources below. Rules and prices change, so check the current position before you rely on a figure.
- IRS Publication 15 (2026): Employer’s Tax Guide, supplemental wages (flat 22% rate, aggregate method, 37% over $1 million)
- IRS Publication 15 (2026): Social Security wage base, Medicare and Additional Medicare Tax withholding
Common questions
How is a bonus taxed?
How much tax is taken out of a $5,000 bonus?
What is the aggregate method for bonus tax?
Is a bonus taxed at 22%?
Why is my bonus taxed so much?
How much bonus do I need to take home $3,000?
Do I pay Social Security tax on a bonus?
What is the bonus tax rate over $1 million?
Related tools
Results are estimates, not legal, tax, payroll or financial advice. They follow the rules and rates named under Sources, leave out anything the page does not mention (such as other income, credits, local rules or your employer’s own policy), and can differ from a payroll run, a tax return or an agency’s decision. See the disclaimer. Found a mistake? Report an error in a calculation.