Quick answer: Employers withhold a flat 22% federal tax from a bonus, up to $1,000,000 of supplemental wages in the year, and 37% above that. FICA of 7.65% comes out on top. A $10,000 bonus usually has about $2,965 withheld, leaving roughly $7,035.
How the bonus tax calculator works
Most employers use the flat-rate (percentage) method for a bonus paid separately from a regular paycheck, because it is simpler than recalculating withholding on a combined total. The $1,000,000 threshold is set by law and is not adjusted for inflation.
net bonus = bonus − federal withholding − FICA − state taxFederal = 22% up to $1M of supplemental wages, 37% above- Social Security is 6.2% of the bonus, but only up to what is left of the $184,500 wage base after your other wages.
- Medicare is 1.45% of the whole bonus.
- Additional Medicare Tax is 0.9% on the part of your year’s wages above your threshold.
The flat rate is a withholding rate, not necessarily your final tax. The bonus is taxed at your normal rates when you file. If 22% was more than your real marginal rate, the difference is refunded. If it was less, you may owe more.
Worked example: $10,000 bonus, $65,000 other wages, single
$10,000 bonus paid separately, no earlier bonuses, no state tax
- Federal: $10,000 × 22% = $2,200.00
- Social Security: $119,500 of wage base left, so $10,000 × 6.2% = $620.00
- Medicare: $10,000 × 1.45% = $145.00 (total wages $75,000, under $200,000)
- Total withheld: $2,965.00
Result: $7,035.00 net, 29.65% withheld
2026 federal bonus withholding at a glance
| Component | 2026 rate | Applies to |
|---|---|---|
| Federal flat rate | 22% | Up to $1,000,000 of supplemental wages in the year |
| Federal flat rate (excess) | 37% | Supplemental wages above $1,000,000 |
| Social Security | 6.2% | Wages up to the $184,500 wage base |
| Medicare | 1.45% | All wages, no cap |
| Additional Medicare Tax | 0.9% | Wages above $200,000 (single, HOH), $250,000 (MFJ), $125,000 (MFS) |
What this calculator does not include
Not included: Your W-4 elections, tax credits, itemized deductions and your final tax at filing. It assumes the flat-rate method. Employers using the aggregate method may withhold a different amount.
Who uses a bonus tax calculator
- Employees checking take-home before a bonus arrives.
- Job seekers comparing offers with sign-on or annual bonuses.
- High earners checking the Additional Medicare Tax or the $1M threshold.
- Payroll staff and owners estimating withholding before a bonus run.
Frequently asked questions
What is the bonus tax rate for 2026?
Under the federal flat-rate method, employers withhold 22% from a bonus up to $1,000,000 of supplemental wages for the year, and 37% on any amount above that. FICA (7.65% for most employees) is withheld on top.
Why is my bonus taxed at a higher rate than my paycheck?
It usually is not. The 22% flat withholding can be higher than the withholding on a normal paycheck, but the bonus is taxed at your normal rates when you file. Any over-withholding comes back in your refund.
Does my bonus have FICA taken out?
Yes. Social Security (6.2% up to the $184,500 wage base) and Medicare (1.45%, no cap) apply, plus the 0.9% Additional Medicare Tax once your wages for the year pass $200,000 ($250,000 married filing jointly, $125,000 married filing separately).
What happens if my bonuses pass $1 million this year?
Only the portion above $1,000,000 is withheld at 37%. With $980,000 already paid and a new $50,000 bonus, $20,000 is withheld at 22% ($4,400) and $30,000 at 37% ($11,100), a total of $15,500.
Can I get some of the bonus withholding back?
Yes, if the flat rate withheld is more than your actual tax on that income, the difference is refunded when you file. This calculator estimates withholding at payment, not your final tax bill.
What is the difference between the flat-rate and aggregate methods?
The flat-rate method withholds a fixed 22% or 37% from a bonus paid separately. The aggregate method adds the bonus to a regular paycheck and uses the normal withholding tables, which can give a different amount. Employers choose the method.
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Accuracy note: The 22% and 37% rates, the $1,000,000 threshold and 2026 FICA figures are checked against IRS supplemental wage guidance and the Social Security Administration. This is an estimate, not tax advice. Confirm with your payroll department or a tax professional.
Content Lead, Anchor AI Tools, California, USA. Spotted an error? Email hello@anchoraitools.com and it will be checked and corrected. See our editorial standards.