2026 Bonus Withholding Rates
- •Federal flat (percentage) rate on bonuses: 22% — jumps to 37% on any supplemental wages above $1 million in the calendar year.
- •Social Security: 6.2% on your bonus, but only up to the $176,100 2026 wage base across all your pay this year.
- •Medicare: 1.45% on the full bonus, plus an extra 0.9% once your year-to-date wages pass $200,000.
- •State supplemental rates vary widely: California 10.23%, New York 11.70%, several states use their flat income tax rate, and a handful tax nothing at all.
- •Withholding is not your final tax bill — it's reconciled (refunded or owed) when you file your return.
The Real Problem This Solves
A bonus check lands and it's smaller than expected — sometimes by a lot. The confusion is almost always about which of two IRS-sanctioned withholding methods your employer used, because they produce noticeably different numbers on the same bonus.
The percentage method withholds a flat 22% federal rate. The aggregate method — used when your bonus is added to a regular paycheck — taxes the combined amount as if it were your normal pay for that period, which can push you into a much higher marginal bracket for that one check. Neither number is your actual tax bill; both are just withholding. This calculator runs both methods side by side against your real numbers, so you know which one your employer is likely using and why the two don't match.
Percentage Method vs. Aggregate Method
The percentage method is simple: bonus × 22% federal, plus FICA and state tax on top. The aggregate method adds the bonus to your regular paycheck, calculates withholding on the combined total as if that were your normal pay every period this year (annualized), then subtracts what would've been withheld on the regular pay alone — the remainder is what's withheld from the bonus.
Example: Marcus, single, gets a $10,000 bonus. He's paid biweekly, earns $3,000 gross per paycheck, and has $58,000 in year-to-date wages. Under the percentage method: $2,200 federal (flat 22%) + $765 FICA = $2,965 withheld, leaving $7,035 take-home. Under the aggregate method, adding $10,000 to that paycheck pushes it into the 35% marginal bracket for that period: about $2,812 federal + $765 FICA = $3,577 withheld, leaving $6,423 take-home — about $612 less, on the identical bonus, purely from which method his employer chose.
| Method | Federal Withheld | FICA | Total Withheld | Take-Home |
|---|---|---|---|---|
| Percentage (flat 22%) | $2,200 | $765 | $2,965 | $7,035 |
| Aggregate (added to paycheck) | ~$2,812 | $765 | ~$3,577 | ~$6,423 |
Frequently Asked Questions
Is this a bonus paycheck calculator or a bonus tax calculator?
Both — this bonus paycheck calculator shows the tax withheld from your bonus check under each IRS method, then converts that straight into your real take-home pay, rather than leaving you with just a withholding percentage.
Which method will my employer use?
It's the employer's choice, not yours. Most payroll systems default to the percentage method (a flat 22%) when the bonus is paid as its own separate check. If it's added to a regular paycheck instead, the aggregate method usually applies.
Which method withholds more?
It depends on your income. The aggregate method tends to withhold more when a large bonus pushes that one paycheck into a higher marginal bracket than your normal pay — which is common for mid-to-high earners. At lower regular incomes, the flat 22% percentage method can actually withhold more than your true marginal rate.
Is the withheld amount my actual tax on the bonus?
No. Both methods are withholding, not your final tax liability. Your bonus is taxed at your normal marginal rate(s) when you file your return — whatever was over- or under-withheld shows up as part of your refund or balance due.
Do I pay Social Security and Medicare on a bonus?
Yes — a bonus is subject to the same FICA rules as regular wages: 6.2% Social Security (until your year-to-date wages hit the $176,100 wage base for 2026) and 1.45% Medicare, plus an extra 0.9% Medicare surtax once your year-to-date wages pass $200,000.
What if my bonus is over $1 million?
The IRS requires a mandatory flat 37% federal withholding rate on any supplemental wages (bonuses, commissions, etc.) above $1 million in the calendar year, regardless of which method was used below that threshold.
Does my state tax bonuses differently than regular pay?
It depends on the state. Some publish a separate flat supplemental rate (California 10.23%, New York 11.70%), others just apply their standard flat income tax rate to everything, and states with no income tax (Texas, Florida, Washington, and others) don't withhold anything.