Are bonuses taxed at a higher rate than salary?

No. Bonuses are ordinary wage income taxed at your normal marginal rates when you file. What differs is withholding: the flat 22 percent federal rate (37 percent above $1 million) can be higher or lower than your bracket, so the paycheck stub looks different, but your return trues it up either way.

Why did my bonus check lose more than 30 percent?

Stack the pieces: 22 percent federal, 7.65 percent Social Security and Medicare, and a state supplemental rate that can run 5 to 11 percent. Together they commonly take 30 to 40 percent upfront. If your true marginal rate is lower than the withholding, the extra comes back at filing.

What is the 22 percent flat rate and when does 37 percent apply?

IRS Publication 15 lets employers withhold a flat 22 percent on supplemental wages like bonuses, commissions, and severance instead of the regular wage tables. Once supplemental wages for the year pass $1 million, withholding on the excess must be 37 percent, with no choice about the method.

Can I reduce the tax on my bonus?

You cannot change the withholding method, but you can lower the tax itself: putting part of the bonus into a traditional 401(k) reduces the income tax it eventually bears (though not Social Security or Medicare), and an HSA contribution can do the same if you are eligible. Timing matters too, since a bonus paid after you pass the wage base skips the 6.2 percent.

Bonus Tax Calculator

See what a bonus pays after withholding in 2026: the flat 22% federal supplemental rate (37% above $1M), Social Security and Medicare, and your state's rate.

X f in

Net bonus

$3,517.50

Federal withholding (22% flat): $1,100.00
Social Security: $310.00
Medicare: $72.50
Additional Medicare: $0.00
State withholding: $0.00
Total withheld: $1,482.50
Withholding rate: 29.65%

Quick answer: With the example inputs this page loads by default, the headline result (Net bonus) comes to $3,517.50. See what a bonus pays after withholding in 2026: the flat 22% federal supplemental rate (37% above $1M), Social Security and Medicare, and your state's rate. Change any input above and every figure updates instantly in your browser.

Figures shown are for the 2026 tax year. The calculator always applies the current year's figures.

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Fact-check: results on this page are verified against an independently coded reference oracle that covers all 106 calculators on this site. See how we verify .

Bonuses are not taxed at a special higher rate; they are withheld differently. Under the IRS percentage method your employer withholds a flat 22 percent federal (37 percent on any amount over $1 million), plus Social Security and Medicare and any state supplemental rate. This calculator shows the withholding stack and your net bonus; the final tax settles on your return at your ordinary rates.

What this result means

If the 22 percent flat rate is above your real marginal rate, the difference comes back at filing as a larger refund; if you are in the 24 percent bracket or higher, you may owe a little more in April. The withholding percent shown here is not your tax rate on the bonus, only the upfront slice. Social Security disappears from the stack once year-to-date wages pass the wage base, which is why late-year bonuses for higher earners often net more. This is an estimate for education, not tax advice.

Assumptions

Federal withholding uses the IRS percentage method for supplemental wages (Publication 15): a flat 22 percent, and a mandatory 37 percent on the portion of supplemental wages above $1,000,000 for the year. The $1 million test is applied to this bonus alone; earlier supplemental wages in the same year are not tracked. The aggregate method, where the bonus is lumped with a regular paycheck, is the other legal approach employers use and can withhold a different amount.
FICA applies to the bonus like any wage: 6.2 percent Social Security on the part within the 2026 wage base of $184,500 after your year-to-date wages, 1.45 percent Medicare on the whole bonus, and 0.9 percent Additional Medicare on the part above your filing status threshold after year-to-date wages.
State withholding is the flat supplemental percent you enter times the bonus. Rates are set by each state (for example, California's 10.23 percent rate for bonuses and stock options, per the EDD, or New York's 11.7 percent); many states have none. Check your state's employer withholding guide for the current figure.
This models withholding, not your final tax. On your return the bonus is ordinary wage income taxed at your marginal rates; the difference between the flat withholding and your real rate settles as a larger refund or balance due. Pre-tax 401(k) deferrals from the bonus, local taxes, and employer aggregate-method withholding are not modeled.
This is an estimate for educational purposes only, not tax advice. Confirm current rates with the IRS and your state revenue department.

Key terms

Definitions for the terms this calculator uses, in our finance glossary .

How it works

A bonus is supplemental wages, and the calculator models the IRS percentage method most employers use for a separate bonus check.

Federal. A flat 22 percent is withheld on supplemental wages (IRS Publication 15). On the portion of supplemental wages above $1,000,000 in a year, withholding is a mandatory 37 percent with no method choice. The $1 million test here is applied to the entered bonus alone.

FICA. The bonus is ordinary FICA wages: 6.2 percent Social Security applies to the part that still fits under the 2026 wage base of $184,500 after your year-to-date wages, 1.45 percent Medicare applies to the whole bonus, and 0.9 percent Additional Medicare applies to the part above the threshold ($200,000 single, $250,000 married filing jointly) after year-to-date wages.

State. Many states publish their own flat supplemental rates, which you enter directly: California withholds 10.23 percent on bonuses and stock options (EDD), New York 11.7 percent, and several states withhold nothing.

Withholding is not the final tax. On your return the bonus lands in your ordinary brackets, and the gap between the flat withholding and your real marginal rate settles as refund or balance due.

Worked example

A $5,000 bonus with $80,000 of year-to-date wages, single, no state rate, for 2026.

Federal: 22% x $5,000 = $1,100.
Social Security: the wage base has room, so 6.2% x $5,000 = $310.
Medicare: 1.45% x $5,000 = $72.50.
Total withheld: $1,482.50 (29.65 percent), leaving a net bonus of $3,517.50.

Move the year-to-date wages to $190,000 and Social Security drops out (the base is used up), so the same bonus nets $3,827.50.

Scope and limitations

The percentage (flat-rate) method on a separately paid bonus. Not modeled: the aggregate method (bonus lumped with a regular paycheck, withheld from the wage tables), earlier supplemental wages counting toward the $1 million threshold, pre-tax 401(k) or HSA deferrals from the bonus, and local taxes. This is a withholding estimate for education, not tax advice.

Sources

Frequently asked questions

Are bonuses taxed at a higher rate than salary?: No. Bonuses are ordinary wage income taxed at your normal marginal rates when you file. What differs is withholding: the flat 22 percent federal rate (37 percent above $1 million) can be higher or lower than your bracket, so the paycheck stub looks different, but your return trues it up either way.
Why did my bonus check lose more than 30 percent?: Stack the pieces: 22 percent federal, 7.65 percent Social Security and Medicare, and a state supplemental rate that can run 5 to 11 percent. Together they commonly take 30 to 40 percent upfront. If your true marginal rate is lower than the withholding, the extra comes back at filing.
What is the 22 percent flat rate and when does 37 percent apply?: IRS Publication 15 lets employers withhold a flat 22 percent on supplemental wages like bonuses, commissions, and severance instead of the regular wage tables. Once supplemental wages for the year pass $1 million, withholding on the excess must be 37 percent, with no choice about the method.
Can I reduce the tax on my bonus?: You cannot change the withholding method, but you can lower the tax itself: putting part of the bonus into a traditional 401(k) reduces the income tax it eventually bears (though not Social Security or Medicare), and an HSA contribution can do the same if you are eligible. Timing matters too, since a bonus paid after you pass the wage base skips the 6.2 percent.

Related calculators

Learn how this works

New to this topic? Our companion guide explains it in plain language: 2026 Tax Brackets Explained: Why a Raise Never Taxes All of Your Income at a Higher Rate

By Sam Sage Last reviewed July 2026.