Bonus tax calculator
Bonuses feel taxed harder because employers usually withhold a flat 22% of federal income tax, plus Social Security and Medicare.
Enter your bonus to see each piece and what reaches your account.
How it's calculated
- Federal income tax: 22% of the bonus. Once your supplemental pay for the year passes $1,000,000, the part above it is withheld at 37%.
- Social Security: 6.2% of the bonus, but only until your wages for the year reach $184,500.
- Medicare: 1.45% of the bonus, plus 0.9% on the part of your yearly wages above $200,000.
An example
On a $5,000 bonus, $1,100 goes to federal income tax, $310 to Social Security and $72.50 to Medicare. You keep $3,517.50 before state tax.
Frequently asked questions
Are bonuses taxed more than regular pay?
No. The withholding method is different, but at tax time a bonus is just more wages. If 22% is more than your real rate, the extra comes back in your refund.
Can my employer use a different method?
Yes. If the bonus is paid together with regular wages, the employer can add both and withhold as if it were one larger paycheck. That often withholds more.
Can I put my bonus in my 401(k) to save tax?
Often yes, if your plan allows deferrals from bonuses. Money sent to a traditional 401(k) skips federal income tax withholding but still pays Social Security and Medicare.
Key terms
- Supplemental wages
- Pay outside your regular salary, such as bonuses, commissions and severance.
- Flat rate method
- Withholding a fixed percentage of supplemental wages instead of using the tax tables.
Up-to-date official data
Data checked against the official source on .
We check the official sources automatically, every day.
- IRSPublication 15 (Circular E), Employer's Tax Guide for use in 2026
- IRSTopic no. 560, Additional Medicare Tax
- Social Security Administration in the Federal RegisterCost-of-Living Increase and Other Determinations for 2026 (FR Doc. 2025-19763)