Bonus Tax Calculator

Bonus Tax Calculator: See What You Actually Keep After Taxes

Use this bonus tax calculator to see your take-home bonus after federal, Social Security, Medicare, state and local tax. Enter one number and the tool shows the net amount that reaches your bank account.

It is built for employees waiting on a payout, job seekers weighing a signing bonus, and managers budgeting for payroll. If you have ever asked why your bonus got taxed so much, this tool shows where every dollar went.

It matters because a bonus is rarely taxed the way people expect. Employers usually withhold a flat 22% for federal income tax, then add FICA and state tax. A $5,000 bonus in a state with no income tax often nets about $3,517.

Last updated October 3, 2026. Federal supplemental-wage figures were checked against IRS Publication 15 (2026).

2026 Bonus Tax Numbers at a Glance

The IRS keeps the federal withholding rate on supplemental wages at 22%, and raises it to 37% once an employee’s supplemental wages for the year pass $1 million. The other figures come from the calculator’s 2026 tables, which follow Rev. Proc. 2025-32 and Social Security Administration limits.

What This Bonus Tax Calculator Does

This suite has twelve connected cards. Each card works alone, and calculating one card auto-fills matching fields in the others.

You can think of it as a bonus tax estimator, a bonus paycheck calculator and a bonus take home calculator in one flow.

How to Use the Calculator

1. Enter your gross bonus in Card 1, as dollars or as a percent of salary.
2. Pick the tax year, filing status, pay frequency, salary and year-to-date wages.
3. Choose your state and any city tax.
4. Pick a federal method: flat 22%, aggregate, or compare both.
5. Add any pre-tax 401(k), HSA or Section 125 amounts.
6. Press Calculate and read the net bonus and the effective rate.
7. Open Card 6 to see whether you may get a refund or owe more at filing.

Press Fill Example to load a sample profile. Press Reset to start over.

Calculator Guide: Inputs, Outputs and Formulas

What each input means

What each result means

• Net bonus: the cash you keep after taxes and pre-tax deductions.
• Total tax and effective rate: all withholding divided by the gross bonus.
• Tax per $100: a quick way to size any other bonus.
• Percentage vs aggregate table: both federal methods side by side.
• Over or under withholding: your likely refund effect or balance due.

Formulas used

Federal tax equals the bonus times 22%, or 37% on the part above $1,000,000. Social Security equals the lesser of the bonus or the remaining wage base, times 6.2%. Medicare equals the bonus times 1.45%, plus 0.9% on wages above $200,000.

Net bonus equals the bonus minus all taxes and pre-tax deductions. Gross-up equals the net target divided by one minus your combined withholding rate.

Assumptions and limitations

State rates are planning figures. States that use aggregate withholding are approximated with a flat rate. Local rates are common examples, not a full list of every city.

The tool estimates withholding. It does not prepare your tax return, model every credit, or replace a payroll system. The disclaimer applies: this is informational, not professional advice.

How Bonuses Are Taxed in 2026

The IRS treats a bonus as supplemental wages. These are wages paid on top of regular pay, and they include bonuses, commissions, overtime and severance.

So yes, bonuses are taxed. They are taxed as ordinary income, plus Social Security and Medicare. Bonus payments tax rules have not changed for 2026. Pub 15 says the 22% rate stays in place because P.L. 119-21 permanently extended the individual tax rates from the 2017 tax law.

The percentage method (flat 22%)

If your bonus is paid separately, your employer can withhold a flat 22%. When supplemental wages are combined with regular wages, the IRS allows only the flat 22% in one situation and otherwise points employers to the aggregate approach. The flat method is simple and predictable, so many payroll teams choose it.

The aggregate method

The employer adds the bonus to a regular paycheck, annualizes the total, and withholds using your W-4 tables. This can produce a bigger bite, because it assumes you earn that rate all year.

The $1 million rule

Once supplemental wages for the year pass $1,000,000, the excess is withheld at 37%. That rate applies no matter what your W-4 says.

Social Security, Medicare and Additional Medicare

FICA applies to the full bonus. Social Security stops once your year-to-date wages pass $184,500. Medicare never stops, and the extra 0.9% starts above $200,000.

State and local tax

Most states withhold a flat supplemental rate or use their regular tables. A few cities add more. Some states also collect payroll-funded disability or paid-leave contributions.

Why Is My Bonus Taxed So High?

Your bonus is not taxed at a special higher rate. It is withheld at a flat rate, and the true tax is settled when you file Form 1040.

The gap depends on your bracket. If your marginal rate is below 22%, you are over-withheld and likely get money back. If it is above 22%, you may owe more.

We ran the calculator’s 2026 engine for a single filer using the standard deduction. These figures cover federal income tax only.

Editor’s analysis: workers near the middle of the income range tend to see a refund effect. Higher earners are more likely to owe. Card 6 runs this test with your own numbers and credits.

For a deeper bracket view, try the tax bracket calculator or the income tax calculator.

Bonus Tax by State

State rules change your take-home more than most people expect. These are the calculator’s planning rates for bonuses.

If you ask how bonuses are taxed in California, the answer is a high flat rate plus SDI. If you ask how bonuses are taxed in Texas, there is no state tax, so only federal and FICA apply.

Local tax can add more. For example, New York City adds a planning rate of 3.876%. Always confirm rates with your state revenue department before payroll runs.

Practical Examples

Example 1: $5,000 bonus in Texas

A single employee earns $75,000 and gets a separate $5,000 bonus.

1. Federal at 22%: $1,100.00
2. Social Security at 6.2%: $310.00
3. Medicare at 1.45%: $72.50
4. State tax: $0
5. Net bonus: $3,517.50 (70.35% kept)

With the aggregate method, federal withholding is $1,164, so the net falls to $3,453.50.

Example 2: $15,000 bonus in California

A married employee earns $120,000, is paid 24 times a year, and has $90,000 in wages so far.

That is the answer to a common search: a $15,000 bonus after taxes in California nets about $8,823 under the flat method. In Texas, the same single-filer bonus nets $10,552.50.

Example 3: $10,000 bonus in New York City

Federal is $2,200. Social Security is $620 and Medicare is $145. New York State is $1,170, SDI is $31.20, and city tax is $387.60. The total tax is $4,553.80, so the net is $5,446.20, or about 54.5% of the gross.

Example 4: A high earner past the wage base

An employee with $200,000 in wages gets a $20,000 bonus in Texas. Social Security is already capped, so it is $0. Federal is $4,400. Medicare is $290 plus $180 of Additional Medicare. The net is $15,130.

Example 5: Putting half the bonus in a 401(k)

Take the $5,000 Texas bonus and send 50% to a pre-tax 401(k).

• Federal drops to $550, which is 22% of the remaining $2,500.
• FICA stays at $382.50, because 401(k) deferrals still owe it.
• Cash in hand is $1,567.50, and $2,500 goes to retirement.

Your cash is lower, but total value is $4,067.50 versus $3,517.50. The extra $550 is the federal tax you avoided.

Comparison: Flat 22% vs Aggregate

Comparison: Types of Bonus

Card 7 applies the right treatment by type.

A signing bonus has the most contract risk. Read how the clawback is calculated and whether you repay gross or net.

How to Legally Reduce Your Bonus Tax

You cannot avoid bonus tax, but you can reduce it.

• Pre-tax 401(k): the 2026 limit is $24,500, plus catch-up amounts. Use the 401(k) calculator to project the growth.
• HSA or FSA: HSA limits are $4,400 self-only and $8,750 family. A health FSA is $3,400. These payroll deductions also avoid FICA.
• Employer match: capture it first, because it is free money.
• Deferral: if your plan allows, deferring a bonus moves tax to next year.
• Roth option: a Roth gives no tax break now. See the Roth IRA calculator for long-term effects.

Tax credits matter too. Try the tax credit calculator and the adjusted gross income calculator to see how deductions change your result.

Commission, Profit Sharing, RSUs and Severance

Commission paid separately is also supplemental wages. The flat 22% applies to W-2 employees. Independent contractors on 1099 pay self-employment tax of 15.3% on 92.35% of net earnings, plus income tax and quarterly estimates. Try the commission calculator for sale-by-sale detail.

For a profit sharing tax calculator view, remember that cash payouts are taxable wages. Deposits into a 401(k) defer income tax.

Severance is treated the same way. Severance sits alongside bonuses and commissions as a supplemental wage, with the same flat-rate treatment plus state tax and FICA.

Overtime is also supplemental pay. See the overtime tax calculator and the no tax on overtime calculator. A lottery tax calculator covers a different kind of windfall.

For Employers: Gross-Up and Total Bonus Cost

Employers often promise a net bonus, such as “$5,000 in your pocket.” Card 12 works backward to the gross.

For a single Texas employee at flat 22%, a $5,000 net bonus requires a $7,107.32 gross. In California, a $10,000 net bonus requires $17,001.02.

The company also pays 7.65% employer FICA. On the Texas gross, that is $543.71, so the cost is about $7,651 before FUTA, SUTA, workers’ comp and benefits. That is roughly $1.53 per $1 of net bonus.

Use the net to gross calculator or the reverse tax calculator for other pay problems.

Edge Cases and Warnings

Bonus paid with your regular paycheck. Employers must use the aggregate method, which can make the check look far lower. Ask for a separate check if you can.

Multiple jobs or a W-4 Step 2 checkbox. Aggregate withholding changes. Card 2 models these W-4 steps.

Bonuses over $1 million. The 37% rate applies to the excess, and it cannot be avoided.

Working in one state and living in another. Your residence state may still tax you. Check both states in Card 3.

Leaving after a signing bonus. If a clawback applies, you may repay a pro-rata amount. Same-year repayment can recover some withheld tax, but later-year repayment is more complex.

1099 workers. You get no withholding, so set aside roughly 25–35% of commission for taxes.

Bonuses paid in January. Pay generally counts in the year you receive it, so check which year’s tables apply.

Common Mistakes and Pro Tips

Common mistakes

• Assuming the 22% flat rate is your tax bracket.
• Forgetting FICA and state tax.
• Thinking installments lower total tax. They only change timing.
• Counting on the full bonus before checking for a clawback.

Pro tips

• Use Tax per $100 to size any other bonus quickly.
• Ask whether your employer uses the flat or aggregate method.
• Compare a bonus with a raise using the pay raise calculator.
• Convert pay to a rate with the salary to hourly calculator.
• For a part-year bonus, use the prorated salary calculator.

Data and Expert Commentary

Bonuses are common but not universal. In March 2025, half of private industry workers had access to nonproduction bonuses, and 6% had access to cash profit-sharing bonuses. In 2024, 12% of private industry workers had access to end-of-year bonuses and 7% to holiday bonuses.

Search demand shows the confusion. Semrush data shows roughly 12,100 monthly searches for “bonus tax calculator,” about 9,900 for “bonus tax estimator,” and 4,400 for “bonus tax rate.”

Editor’s analysis: the real complaint is rarely the tax rate. It is shock at the check. A bonus is income at your normal marginal rate, but withholding uses a flat figure, so the difference settles at filing. Card 6 puts a number on that gap before it surprises you.

For total pay planning, pair this tool with the salary calculator, the annual salary calculator, the annual income calculator, the paycheck calculator and the gross to net calculator.

Key Terms

More definitions are in the glossary.

Frequently Asked Questions

Are bonuses taxed?

Yes. A bonus is taxable income. It faces federal income tax withholding, Social Security, Medicare, and state and local tax where they apply.

How much are bonuses taxed in 2026?

Federal withholding is usually a flat 22%. Add 7.65% for FICA, and any state tax. In a no-income-tax state, expect roughly 30% total withholding. Use the calculator for your exact number.

Will bonuses be taxed in 2026?

Yes. The 2026 rules keep the 22% flat rate and the 37% rate above $1 million. Your actual tax is settled on your return.

Why are bonuses taxed so high?

They are not taxed at a higher rate. They are withheld at a flat 22% that can exceed your bracket, so the check looks smaller. Any excess comes back as a refund effect at filing.

Are bonuses taxed at a higher rate than salary?

Not in the final tax calculation. Both are ordinary income. Only the withholding method differs.

What is the supplemental tax rate in 2026?

The federal rate is 22%, rising to 37% on supplemental wages above $1,000,000 in a year. States set their own rates.

How do I calculate my bonus after tax?

Subtract federal tax, Social Security, Medicare, state tax and any local tax from the gross bonus. Or enter the bonus in Card 1 and read the net bonus. It does the same math instantly.

How much is a $15,000 bonus after taxes?

In Texas, a single filer nets about $10,552.50. In California, the married example above nets about $8,823. Your result depends on state, wages and method.

How are bonuses taxed in California?

California withholds 10.23% on bonuses and stock options. Add 22% federal, FICA, and 1.3% SDI in the calculator’s planning rates.

How are bonuses taxed in Texas?

Texas has no state wage income tax. Only federal tax and FICA apply, so a $5,000 bonus nets about $3,517.50.

Are signing bonuses taxed?

Yes. A signing bonus is a supplemental wage. If you leave before a clawback period ends, you may owe part of it back.

Will a bonus push me into a higher tax bracket?

Only the part that crosses a bracket line is taxed at the higher rate. Your whole income is not retaxed. Card 2 shows the bracket change.

Is commission taxed like a bonus?

For W-2 employees, yes. Separately paid commission is withheld at 22%. Independent contractors pay self-employment tax and quarterly estimates instead.

Can I reduce the tax on my bonus?

Yes. Pre-tax 401(k), HSA and FSA contributions lower taxable pay. Card 11 estimates the savings and your remaining contribution room.

Conclusion

A bonus is taxed like other pay, but withheld differently. Expect 22% federal withholding, 7.65% FICA, and state or local tax on top.

This bonus tax calculator turns that into a clear take-home number. It compares flat and aggregate methods, covers all 50 states and DC, and shows whether you may get a refund or owe more.

Use it before you plan, negotiate or spend. For the exact figure, confirm with your payroll team or a tax professional.