Bonus tax calculator.
How much of a bonus you keep in 2026: the federal flat rate or the aggregate method, Social Security, Medicare and your state.
Your bonus
You keep
$3,517.50
of a $5,000 bonus: 29.6% withheld.
- Bonus
- $5,000.00
- Federal, flat rate
- -$1,100.00
- Social Security
- -$310.00
- Medicare
- -$72.50
- You keep
- $3,517.50
How bonus withholding works
Withholding is not the final tax
The flat 22% is how much the employer sends to the IRS, not how much tax the bonus ends up costing. When you file, the bonus is part of your wages and taxed at your ordinary rates; if 22% was more than your rate, the difference comes back in your refund.
Questions people ask
Why is my bonus taxed at 22%?
Employers may withhold federal income tax on supplemental wages paid separately at a flat 22%. That is withholding, not your final tax: the bonus is taxed at your normal rates when you file.
What happens above $1 million in bonuses?
Supplemental wages above $1 million in a year must be withheld at 37%.
What is the aggregate method?
The employer adds the bonus to a regular paycheck, withholds on the total as if it were one paycheck, and subtracts what it already withholds on the regular pay.
Sources
Checked against these sources on October 30, 2026.