Find Out How Much of Your Bonus You Actually Keep
A $10,000 work bonus rarely means $10,000 deposited into your bank account. Employers may withhold federal income tax, Social Security, Medicare and state taxes before paying you. Enter your bonus below to estimate the money left after withholding.
2026 Bonus Take-Home Calculator
Enter your gross bonus before deductions. Example values are prefilled so you can see how the calculation works.
Advanced settings: year-to-date wages and tax thresholds
For standard taxable cash bonuses paid to W-2 employees. State and local rates are user-supplied. Contributions that change federal or FICA taxable wages require separate payroll treatment; do not treat every pretax deduction identically.
Your Estimated Take-Home Bonus
Amount remaining after estimated withholding and entered deductionsTeal: amount kept · Gold: withholding and deductions
Example assumes the eligible flat federal method, standard payroll taxes and no state withholding.
How Much Tax Comes Out of a Bonus in 2026?
For an eligible separately identified bonus, an employer can generally withhold 22% federal income tax on supplemental wages within the $1 million annual threshold. In addition, covered wages normally face 6.2% employee Social Security tax up to the annual wage base and 1.45% Medicare tax.
Optional method for eligible supplemental wages within the $1 million threshold.
Applies to covered wages until the 2026 wage base is reached.
Generally applies without a wage cap. Additional Medicare withholding may also apply.
The important distinction is that 22% is a withholding rate, not necessarily your final tax rate. Your income tax return considers your total taxable income, deductions, credits and other circumstances.
2026 Bonus Tax and Payroll Withholding Rates
| Tax type | 2026 rule | What it means for a bonus |
|---|---|---|
| Federal supplemental withholding | 22% optional flat rate | Available for qualifying separately identified supplemental wages under IRS rules. |
| High supplemental wages | 37% on excess above $1 million | Mandatory federal withholding on the amount over the cumulative annual threshold. |
| Social Security | 6.2% | Employee tax on covered wages up to $184,500 in 2026. |
| Medicare | 1.45% | Employee tax on covered Medicare wages, with no general wage ceiling. |
| Additional Medicare withholding | 0.9% | Employer withholding on covered wages paid to an employee above $200,000 during the calendar year. |
| State/local | Varies | Actual bonus withholding rules depend on the jurisdiction and payroll circumstances. |
Sources: IRS Publication 15 for 2026 and IRS Publication 15-T. The 0.9% employer withholding threshold is not the same as every taxpayer’s final Additional Medicare Tax liability threshold.
Bonus After Tax: $1,000 to $50,000 Examples
The following calculations assume eligible 22% flat federal withholding, full employee Social Security and Medicare coverage, wages below relevant payroll tax thresholds, and no state or local deductions.
| Gross bonus | Federal 22% | Social Security + Medicare | Estimated take-home |
|---|---|---|---|
| $1,000 | $220 | $76.50 | $703.50 |
| $2,500 | $550 | $191.25 | $1,758.75 |
| $5,000 | $1,100 | $382.50 | $3,517.50 |
| $10,000 | $2,200 | $765 | $7,035 |
| $20,000 | $4,400 | $1,530 | $14,070 |
| $50,000 | $11,000 | $3,825 | $35,175 |
If your Social Security wages already reached $184,500 in 2026, the same employer generally stops withholding regular Social Security tax on additional covered wages. Your bonus take-home can therefore differ from these examples.
Flat 22% vs. Aggregate Bonus Withholding
Percentage method
For an eligible separately identified bonus, federal income tax may be withheld at the optional 22% rate on qualifying supplemental wages up to the threshold.
Aggregate method
Payroll combines supplemental wages with regular pay under the applicable IRS procedure, computes withholding, and determines the amount attributable to the supplemental wages.
More than $1 million
The portion of supplemental wages above the cumulative annual threshold is subject to mandatory 37% federal income tax withholding.
Employers determine the permitted method under IRS rules. The aggregate calculation depends on payroll frequency, W-4 information, regular wages and the relevant withholding procedure. It is not accurately represented by simply applying your marginal income tax bracket to the entire bonus.
To use the calculator for aggregate withholding: ask payroll for the federal tax withholding attributable to the bonus. Choose “Payroll-provided federal withholding” and enter that amount. The calculator will add the separately estimated payroll taxes, state/local withholding and other deductions.
How to Check Your Bonus Withholding Step by Step
- Open IRS Publication 15. Visit IRS Employer’s Tax Guide. Locate Section 7, which explains supplemental wage withholding, including the percentage and aggregate methods.
- Identify your bonus payment type. Check your paystub to see whether the bonus is separately identified or included with regular wages. The way payroll identifies and pays the bonus affects the applicable withholding procedure.
- Review your year-to-date amounts. Find Social Security wages, Medicare wages and supplemental wages on your payroll records. They can affect the $184,500 Social Security limit, $200,000 Additional Medicare withholding threshold and $1 million supplemental wage threshold.
- Verify your W-4 details. Open the IRS Tax Withholding Estimator. Have your recent paystubs ready, including spouse information if applicable, and follow the estimator’s questions.
- Compare your result with the paystub. Add the federal income tax, Social Security, Medicare, any state/local amounts and any other deductions on the bonus payment. Look at the net bonus amount rather than just the federal income tax line.
- Contact payroll if figures differ. Ask whether the employer used the percentage method or aggregate method, which W-4 settings were applied, and whether any benefit deductions were taken from the payment.
- Review withholding after a large bonus. If the IRS estimator suggests changes, use its W-4 guidance and submit an updated Form W-4 through your employer’s process. Changing W-4 settings affects withholding, not the legal amount of tax owed.
Do States Tax Work Bonuses Differently?
State income tax withholding can reduce your bonus further. Some states use specific supplemental wage withholding rules; others require calculations connected to ordinary payroll withholding. Some jurisdictions also impose local income taxes.
| Where you work or are taxed | What to investigate | Official starting point |
|---|---|---|
| California | California supplemental wage withholding rules, including whether the payment is a bonus or another type of supplemental wage; SDI may also apply. | California EDD |
| New York | New York supplemental withholding and possible NYC or Yonkers withholding where applicable. | New York withholding tax |
| Texas | Texas does not levy an individual state income tax on wages; federal payroll taxes can still apply. | Texas Comptroller |
| Florida | Florida has no individual state income tax on wages; federal bonus withholding still matters. | Florida Department of Revenue |
| Other states | Find the state tax agency’s current employer withholding instructions, supplemental wage rules and relevant local taxes. | IRS directory of state websites |
Is Your Bonus Really Taxed at 22%?
No. The 22% figure is a federal withholding method, not a separate tax bracket for bonuses. On your federal income tax return, most cash employment bonuses are included with other taxable wages.
For example, an employee whose additional taxable wages fall within a 24% federal marginal bracket may ultimately owe more federal income tax on the bonus than an eligible 22% withholding payment covered. An employee whose additional wages fall entirely in a lower bracket may see the opposite result.
That does not automatically mean you will receive a bonus-specific refund or bill. Your final return combines wages, other income, tax credits, deductions, withholding and payments across the entire year.
Can a bonus be put into a 401(k)?
Some employer plans allow employees to defer part of a bonus into a traditional 401(k), subject to plan terms, contribution limits and payroll procedures. Traditional elective deferrals generally reduce federal income tax wages but do not ordinarily avoid Social Security and Medicare taxes. Check your plan before assuming your bonus contribution has been processed or that all contribution types have identical tax treatment.
Review the official IRS retirement contribution guidance for current limits and rules.
Why Your Actual Bonus Check May Be Smaller Than This Estimate
| Problem | Possible explanation | What to do |
|---|---|---|
| Federal withholding exceeds 22% | Aggregate method, extra withholding, or mandatory 37% withholding on excess supplemental wages. | Ask payroll for the federal withholding method and calculation details. |
| State withholding is missing | The state rate was left at zero or the applicable jurisdiction has additional rules. | Review your state’s official employer withholding instructions. |
| Social Security is lower than expected | You may have reached the annual Social Security wage base with that employer. | Check your Social Security taxable wages to date. |
| Additional Medicare appears | Employer-paid Medicare wages crossed $200,000 during the year. | Compare year-to-date Medicare wages with the threshold. |
| 401(k) deductions change the result | Payroll applied retirement contributions or benefits with tax treatment not modeled here. | Check the bonus deduction election and taxable wage amounts. |
| Bonus included with normal salary | Combined paystub lines make the bonus-only portion hard to isolate. | Request a payroll breakdown of regular and supplemental wages. |
| Bonus includes stock compensation | Restricted stock units and equity compensation may involve share withholding and valuation rules. | Review the vesting statement and W-2 wage treatment. |
What Should You Do Before or After Receiving a Bonus?
Before payment
Confirm gross bonus, payroll method, any 401(k) election, year-to-date payroll thresholds, state withholding and the expected payment date.
On payday
Compare the expected net bonus against the actual deposit and check every relevant paystub line rather than focusing only on federal tax.
Before filing taxes
Review total income and withholding for the year with the IRS estimator and your tax documents. A bonus can change whether you owe tax or receive a refund.
Top 10 Bonus Tax Calculator FAQs for 2026
1. How much tax is taken out of a bonus in 2026?
An employer using the eligible federal flat-rate method generally withholds 22% on supplemental wages within the $1 million threshold. Employee Social Security, Medicare, state and local withholding, and other deductions can reduce take-home pay further. The actual amount depends on your circumstances.
2. How much of a $5,000 bonus will I take home?
Under the eligible 22% federal flat method with full 7.65% employee Social Security and Medicare taxes, you would keep approximately $3,517.50 before state/local withholding and other deductions.
3. How much of a $10,000 bonus will I keep?
With 22% federal withholding and the usual 7.65% employee FICA taxes, a $10,000 fully taxable bonus leaves approximately $7,035 before state taxes, extra withholding and other deductions.
4. Are bonuses taxed at a higher rate than regular salary?
Bonuses may have different payroll withholding rules, but most employment cash bonuses are part of ordinary taxable wage income. The final tax is determined using your overall tax situation, not a separate universal bonus income tax rate.
5. What is the 22% bonus tax rule?
The optional 22% rate is a federal supplemental wage withholding method available under IRS conditions. It does not guarantee that your final federal income tax on a bonus will equal 22%.
6. What happens if bonuses exceed $1 million in 2026?
The portion of cumulative supplemental wages exceeding $1 million from the employer, including applicable businesses under common control, is subject to mandatory federal withholding at 37%. The lower portion remains subject to the appropriate supplemental wage withholding rules.
7. Do Social Security and Medicare apply to bonuses?
Generally yes for covered employee wages. Social Security is normally 6.2% up to the 2026 annual wage base of $184,500, and Medicare is generally 1.45% without a wage base limit. Additional Medicare withholding may apply above $200,000 in employer-paid annual wages.
8. Can contributing my bonus to a 401(k) reduce taxes?
Eligible traditional 401(k) contributions may reduce federal taxable wages, subject to plan rules and contribution limits. They generally remain subject to Social Security and Medicare taxes. Roth contributions and other benefit deductions can have different treatment.
9. Will I get bonus tax withholding back in my refund?
Possibly. A refund depends on your entire tax return. If your total payments and withholding exceed your final tax liability, you may receive a refund; otherwise you may owe additional tax. Bonus withholding alone does not determine the result.
10. Why was more than 40% withheld from my bonus?
A high combined withholding percentage may result from federal supplemental withholding, Social Security, Medicare, state/local taxes, the aggregate method, additional withholding or benefits. Request the individual payroll lines to identify exactly what caused the difference.
Official Sources for 2026 Bonus Tax Calculations
This page relies on government guidance for federal withholding rates and payroll thresholds. The calculator is an independent planning aid, not an official government payroll calculation.
- IRS Publication 15 — Employer’s Tax Guide: supplemental wages, percentage and aggregate withholding, FICA and Additional Medicare withholding.
- IRS Publication 15-T: federal income tax withholding procedures and tables used by employers.
- Social Security Administration — Contribution and Benefit Base: annual Social Security wage base.
- IRS Tax Withholding Estimator: reviewing federal withholding using paystubs and tax information.
- IRS State Government Websites: links to state tax agencies and withholding resources.
- IRS Retirement Plan Contributions: retirement contribution rules and limits.
Federal values shown are for tax year 2026. Always verify applicable state rules and special payroll circumstances before relying on an estimate.
Final Takeaway
The fastest way to understand your bonus check is to separate your gross bonus from federal withholding, payroll taxes, state/local withholding and other deductions. If your employer’s numbers differ from this calculator, your paystub and payroll department are the best places to verify the calculation.
Disclaimer: TaxCalculatorUSA.org is an independent educational website. It is not affiliated with the IRS, Social Security Administration, or any state tax agency. This estimate does not replace payroll software, tax filing calculations or personalized professional advice.
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