Bonus Tax Calculator 2026: How Much of Your Bonus You Keep
A $5,000 bonus is usually withheld at a flat 22% federal rate in 2026: $1,100.00 federal income tax, $310.00 Social Security and $72.50 Medicare, so you keep $3,517.50 before state tax (checked 29 Oct 2026).
Estimate for 2026 based on the rules listed below. Not tax advice and not a pay stub or W-4 calculation; your employer's payroll can differ. Values checked against IRS Publication 15 (2026) and Rev. Proc. 2025-32 on .
What you keep
Bonus after withholding (flat method)
$3,517.50
of $5,000.00 · federal $1,100.00 · Social Security and Medicare $382.50 · state not included
| Bonus | $5,000.00 |
|---|---|
| Federal income tax, 22% on $5,000.00 | − $1,100.00 |
| Social Security (6.2% up to the wage base) | − $310.00 |
| Medicare (1.45%) | − $72.50 |
| State income tax (your amount) | not included |
| You keep | $3,517.50 |
| Flat method | $1,100.00 |
|---|---|
| Aggregate method (approximation) | $1,164.00 |
| Extra federal tax the bonus adds on your return | $1,100.00 |
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MoneyCoach bonus tax calculator · checked 29 Oct 2026 · 2026 estimate, not tax advice and not your employer's payroll.
Flat vs aggregate: the two ways your employer can withhold
The IRS calls bonuses, commissions and similar payments supplemental wages. When your employer pays a bonus separately from your salary (or shows it as its own line) and already withholds income tax from your regular pay, Publication 15 lets it choose one of two methods for the federal income tax:
- Flat method (1a): a flat 22% of the bonus (Pub. 15: "no other percentage allowed").
- Aggregate method (1b): the bonus is added to a regular paycheck, withholding is figured on the total as if it were one normal paycheck, and the withholding on the regular paycheck alone is subtracted. Because the tables assume you earn that much every pay period, the result is often higher than 22%.
If the bonus is simply added to your paycheck without being shown separately, the employer withholds as if the total were one regular paycheck. Social Security and Medicare are taken out in every case.
How this calculator works
- Flat = 22% × (part of the bonus up to $1 million of supplemental wages this year) + 37% × (part above)
- Aggregate (approximation) = tax on (paycheck + bonus) annualised − tax on the paycheck annualised, each ÷ paychecks per year, using the 2026 brackets and the standard deduction for your filing status
- Social Security = 6.2% × the part of the bonus below the $184,500 wage base; Medicare = 1.45% × bonus + 0.9% × wages above $200,000
- You keep = bonus − flat federal − Social Security − Medicare − the state amount you enter
The aggregate figure is an approximation of the IRS Publication 15-T tables, not your employer's exact payroll: real payroll uses your W-4 (extra withholding, dependents, the multiple-jobs box), pre-tax deductions and its own rounding. Example: a $5,000 bonus on a $75,000 salary paid every two weeks is withheld $1,100.00 with the flat method and about $1,164.00 with the aggregate method. On $10,000 the gap grows: $2,200.00 vs about $2,796.70.
Bonuses over $1 million: 37% is mandatory
Once the supplemental wages one employer pays you in a calendar year pass $1,000,000, the excess must be withheld at 37%, the top income tax rate, "without regard to the employee's Form W-4" (Pub. 15, section 7). Payments from businesses under common control count together. Below the threshold the normal choice between flat and aggregate applies.
Example: you have already received $900,000 of bonuses this year and get another $300,000. The first $100,000 still fits under the threshold: 22% = $22,000.00. The remaining $200,000 is above it: 37% = $74,000.00. Federal withholding: $96,000.00. Enter the earlier bonuses in "Bonuses already paid this year" to apply this rule.
Withheld now vs owed at filing
Withholding is a prepayment, not your final tax. On your return a bonus is ordinary wage income taxed with the same brackets as your salary. There is no separate "bonus tax". What the bonus really costs you in federal income tax is the difference between your tax for the year with the bonus and without it. The calculator shows that as "extra federal tax the bonus adds on your return".
- Top bracket 22%: $10,000 on a $75,000 salary (single) adds $2,200.00, the same as the $2,200.00 withheld. It evens out.
- Top bracket below 22%: $5,000 on $40,000 adds only $600.00 (12% bracket), but $1,100.00 is withheld. About $500.00 comes back as part of your refund.
- Top bracket above 22%: $20,000 on $250,000 adds $6,400.00 (32% bracket), but only $4,400.00 is withheld. You owe about $2,000.00 more at filing unless your regular withholding covers it.
This comparison assumes the standard deduction and no income other than your salary and bonuses; credits, itemized deductions, a spouse's income or a second job change it. Your refund or balance due also depends on how well your regular paychecks are withheld. Social Security and Medicare withheld by one employer are final; only the Additional Medicare Tax is squared up on your return, at $250,000 for joint filers, $125,000 married filing separately and $200,000 for everyone else.
Social Security and Medicare on a bonus
Whatever method is used for income tax, a bonus is subject to Social Security and Medicare. In 2026 you pay 6.2% Social Security on wages up to $184,500 for the year and 1.45% Medicare on all wages. Your employer also withholds 0.9% Additional Medicare Tax on wages above $200,000 in the year.
That is why "wages already paid this year" matters. A $5,000 bonus on $75,000 pays $310.00 Social Security and $72.50 Medicare. In the $1 million example, wages for the year are far above the wage base, so Social Security is $0.00, Medicare $4,350.00 and Additional Medicare $2,700.00. If you leave the field empty, the calculator assumes your full salary and earlier bonuses were already paid, as for a year-end bonus.
Worked examples
Flat method, paid every two weeks, no state tax entered, wages for the year already paid in full before the bonus.
| Situation | Federal (flat) | Social Security + Medicare | You keep | Added at filing |
|---|---|---|---|---|
| $5,000 bonus, $75,000 salary, single | $1,100.00 | $382.50 | $3,517.50 | $1,100.00 |
| $10,000 bonus, $75,000 salary, single | $2,200.00 | $765.00 | $7,035.00 | $2,200.00 |
| $5,000 bonus, $40,000 salary, single | $1,100.00 | $382.50 | $3,517.50 | $600.00 |
| $20,000 bonus, $250,000 salary, single | $4,400.00 | $470.00 | $15,130.00 | $6,400.00 |
| $300,000 bonus after $900,000 of earlier bonuses, $250,000 salary, single | $96,000.00 | $7,050.00 | $196,950.00 | $111,000.00 |
Example 2 in words: a $10,000 bonus on a $75,000 salary loses $2,200.00 federal and $765.00 Social Security and Medicare, so $7,035.00 reaches you before state tax.
Values we use and where they come from
| Value | 2026 | Source |
|---|---|---|
| Flat federal rate on supplemental wages | 22% | Pub. 15 (2026), section 7, method 1a |
| Rate on supplemental wages above $1 million in the year | 37% (mandatory) | Pub. 15 (2026), section 7 |
| Social Security (employee) | 6.2% up to $184,500 of wages | Pub. 15 (2026), section 9 |
| Medicare (employee) | 1.45% on all wages | Pub. 15 (2026), section 9 |
| Additional Medicare withholding | 0.9% on wages above $200,000 | Pub. 15 (2026), section 9 |
| Tax brackets 2026 | 10% to 37%, by filing status | Rev. Proc. 2025-32 §3.01 |
| Standard deduction 2026 | $16,100 single · $32,200 joint · $24,150 head of household | Rev. Proc. 2025-32 §3.14 |
| State tax on the bonus | Your own amount (optional) | State supplemental rules are not calculated here; check your state revenue department or your pay stub |
- IRS Publication 15 (2026), Employer’s Tax Guide — section 7, Supplemental Wages — Flat 22% method, aggregate method, mandatory 37% above $1 million, Social Security and Medicare rates, $184,500 wage base and the $200,000 Additional Medicare withholding rule. Checked 29 Oct 2026.
- IRS Publication 15-T, Federal Income Tax Withholding Methods — The withholding tables employers use for the aggregate method; our aggregate figure is an approximation of them. Checked 29 Oct 2026.
- IRS Revenue Procedure 2025-32 (2026 inflation adjustments) — 2026 tax brackets and standard deductions for the "owed at filing" comparison. Checked 29 Oct 2026.
What this calculator does not include
- State and local tax: state supplemental rules are not calculated in this version; enter your own amount. Local income taxes and state programs such as disability insurance are not included.
- Your W-4 and payroll details: the aggregate method is approximated without your W-4 entries, pre-tax deductions or your employer's rounding. See Pub. 15-T for the official tables.
- Pre-tax deductions from the bonus: 401(k) or other deferrals taken from the bonus are not subtracted.
- Credits and other income: the "owed at filing" figure uses the standard deduction only, without credits, itemized deductions, a spouse's income or investment income.
- Special payments: stock awards (RSUs), tips, overtime deductions and non-cash fringe benefits are not modelled. Bonuses paid by an employer that did not withhold from your regular wages must use the aggregate method; we do not check that.
Privacy: all math runs in your browser. Nothing you type is sent to MoneyCoach or anyone else, and nothing is saved. Source of the method rules: IRS Pub. 15 (2026).
Bonus tax questions
How much tax is taken out of a $5,000 bonus?
With the flat method, $1,100.00 federal income tax (22%), $310.00 Social Security (6.2%) and $72.50 Medicare (1.45%). You keep $3,517.50 before any state income tax. State withholding depends on the state.
Why was my bonus taxed so much?
Usually because of withholding, not a special bonus tax. Your employer either withholds a flat 22% or adds the bonus to a regular paycheck and withholds as if you earned that much every pay period, which can push the withholding higher ($1,164.00 instead of $1,100.00 on a $5,000 bonus with a $75,000 salary paid every two weeks). On top come Social Security, Medicare and state tax. What you finally owe is settled on your tax return.
Are bonuses taxed at a higher rate than salary?
No. At filing, a bonus is ordinary wage income and is taxed with the same brackets as your salary. Only the withholding method differs. For a single filer earning $75,000, a $10,000 bonus adds $2,200.00 of federal tax, exactly the $2,200.00 the flat method withholds.
Will I get some of my bonus tax back?
Possibly. If your top bracket is below 22%, the flat rate withholds more than the bonus adds to your tax: a single filer earning $40,000 has $1,100.00 withheld on a $5,000 bonus, but the bonus adds only $600.00 of tax, so about $500.00 comes back through the refund. If your top bracket is above 22%, the opposite happens: on $250,000 the same flat rate leaves about $2,000.00 still to pay on a $20,000 bonus.
What happens to bonuses over $1 million?
Once your supplemental wages for the year pass $1,000,000, your employer must withhold 37% on the excess, whatever your W-4 says. A $300,000 bonus after $900,000 of earlier supplemental wages is withheld at 22% on $100,000 and 37% on $200,000: $96,000.00 in total.
Do Social Security and Medicare apply to a bonus?
Yes, whatever method is used for income tax. Social Security takes 6.2% until your wages for the year reach $184,500; Medicare takes 1.45% of everything, plus 0.9% withheld on wages above $200,000 in the year.
Does this calculator include state tax on bonuses?
Only as an amount you enter. States have their own rules for withholding on bonuses, and we have not verified them for 2026, so the calculator does not compute state tax. Your pay stub or your state revenue department shows the right figure.
Important Disclaimer
This tool is for educational and planning purposes only. It does not provide financial, tax, or legal advice. Results are estimates based on your inputs and may differ from real-world outcomes.