Income Tax Estimator Calculator
Free income tax estimator calculator. Estimate your federal income tax for 2026 based on filing status, income, deductions, and credits with a bracket-by-bracket breakdown.
Tax on Bonus Calculator
Free 2026 bonus tax calculator. Compare the 22% flat supplemental rate vs. an annualized aggregate estimate to see how your bonus may be withheld and what you'll take home.
$
$
Flat Method (22%)
$7,035.00
take-home (29.65% total rate)
Aggregate Method
$7,035.00
take-home (29.65% total rate)
Flat Federal Withholding⧉
$2,200.00
22% supplemental rate
Aggregate Federal⧉
$2,200.00
22% marginal bracket
FICA on Bonus⧉
$765.00
SS $620.00 + Med $145.00
Your Marginal Rate⧉
22%
Federal bracket for bonus dollars
Withholding Comparison
| Component | Flat Method | Aggregate |
|---|---|---|
| Federal Income Tax | $2,200.00 | $2,200.00 |
| Social Security | $620.00 | $620.00 |
| Medicare | $145.00 | $145.00 |
| Total Withheld | $2,965.00 | $2,965.00 |
| Take-Home | $7,035.00 | $7,035.00 |
Withholding estimates based on 2026 federal rates. Actual tax owed is determined when you file your return. State taxes not included.
Planning notes, formulas, and examples
About the Tax on Bonus Calculator
The Tax on Bonus Calculator shows how bonus withholding works under IRS rules. Most employers withhold at the 22% flat supplemental rate on bonuses up to $1 million. Some instead use an aggregate-style approach that effectively treats the bonus like regular wages for withholding.
While the flat 22% rate is simple, it may result in over- or under-withholding compared to your actual tax bracket. This page compares the flat supplemental method with a simplified annualized aggregate estimate so you can see how the withholding approaches differ.
Enter your bonus amount, regular pay, and filing details to compare both methods and see your estimated take-home from the bonus. Many people are confused when their bonus check seems heavily taxed, but the withholding rate and your actual tax rate are different things. The flat 22% supplemental rate is only a withholding method, and your real tax on the bonus depends on your total annual income and marginal bracket. Any over-withholding comes back as a refund when you file.
When This Page Helps
Many workers are surprised by how much tax is withheld from bonuses. This calculator demystifies bonus taxation by showing you both IRS-approved methods side by side, so you can estimate your take-home and plan for any refund or shortfall when you file. Knowing the real impact removes the frustration and helps you plan spending and saving accordingly.
How to Use the Inputs
- Enter your bonus amount.
- Enter your annual salary (for aggregate method comparison).
- Select your filing status.
- View the flat-rate withholding and aggregate-method withholding side by side.
- See your estimated take-home under each method.
Formula used
Flat Method: Federal Withholding = Bonus × 22% (up to $1M) or 37% (over $1M)
Aggregate Method: Tax on (Regular Pay + Bonus) − Tax on (Regular Pay) = Bonus Withholding
FICA on Bonus: SS 6.2% (up to wage base) + Medicare 1.45% + add'l 0.9% if applicableExample Calculation
Result: Flat: $2,200 withheld | Aggregate: ~$2,200 | Take-home: ~$7,035
A $10,000 bonus with $80,000 salary (22% bracket). Flat method: 22% = $2,200 federal withholding. FICA adds $620 (SS) + $145 (Medicare) = $765. Take-home ≈ $7,035. The aggregate method yields similar withholding since the marginal bracket is 22%.
Tips & Best Practices
- The 22% flat rate is a withholding rate, not your actual tax rate — your true tax depends on your bracket.
- If you're in the 12% bracket, the 22% withholding means you'll likely get a refund on the over-withholding.
- If you're in the 32%+ bracket, you may owe additional tax at filing time.
- Bonuses over $1 million use 37% on the excess above $1M.
- FICA taxes (Social Security + Medicare) apply to bonuses just like regular wages.
- You can adjust your W-4 after receiving a bonus to offset over- or under-withholding.
How Bonus Taxation Really Works
Despite the perception that bonuses are “taxed more,” they are ultimately taxed at your marginal rate just like all other income. The apparent higher tax is due to the withholding process. At year-end, your total income (wages + bonus) determines your actual tax liability.
Strategies to Maximize Bonus Take-Home
If you receive a large bonus, consider maximizing your 401(k) contribution for that paycheck (some employers allow this). You can also increase charitable donations, contribute to an HSA, or prepay deductible expenses. These reduce your taxable income for the year.
State Bonus Taxation
States apply their own withholding rules to bonuses. Some use a flat supplemental rate (like the federal method), while others always use the aggregate method. Check your state's rules to understand total bonus withholding.
Sources & Methodology
Last updated:
Methodology
This page compares two withholding views for a cash bonus. The flat method applies the federal 22% supplemental-wage rate up to $1 million and the 37% mandatory rate above that amount, then adds Social Security and Medicare withholding based on the 2026 wage base. The aggregate column is intentionally framed as an annualized estimate: it compares the ordinary federal tax on salary-plus-bonus against salary alone using the 2026 ordinary bracket schedule and 2026 standard deduction assumptions, then adds the same FICA estimate.
Because the aggregate column is annualized, it is not a line-by-line replication of the employer's paycheck withholding tables. Real payroll withholding can differ based on pay-period timing, Form W-4 settings, and employer payroll setup, so the page is best used as a planning worksheet rather than a payroll prediction guarantee.
Sources
- Publication 15 (2026), Employer’s Tax Guide (Internal Revenue Service) — IRS supplemental-wage guidance covering the optional 22% flat rate and the 37% rate above $1 million.
- Revenue Procedure 2025-32 (Internal Revenue Service) — Official 2026 ordinary federal bracket and standard-deduction amounts used in the annualized comparison.
- Tax Topic no. 751, Social Security and Medicare withholding rates (Internal Revenue Service) — IRS reference for Social Security, Medicare, and Additional Medicare withholding rules.
Frequently Asked Questions
Your bonus is typically withheld at 22%, but that's the withholding rate, not your actual tax rate. Your bonus is added to your total income and taxed at your marginal rate. If your marginal rate is lower than 22%, you'll get a refund; if higher, you'll owe more when you file.
The flat method withholds a straight 22% from your bonus. The aggregate method combines your bonus with regular pay for that pay period, calculates tax on the total, subtracts tax already withheld on just the regular pay, and the difference is withheld from the bonus. The aggregate method often results in higher withholding.
This is typically an illusion caused by the withholding method. The flat 22% rate may be higher than your effective tax rate, or the aggregate method bumps your paycheck into a higher bracket for that period. At year-end, bonuses and wages are all taxed the same based on your total income.
Yes. Bonuses are subject to the same FICA taxes as regular wages: 6.2% Social Security up to the 2026 wage base of $184,500 and 1.45% Medicare. If you have already hit the Social Security wage base through regular earnings, no additional Social Security tax applies to the bonus.
The first $1 million of supplemental wages (including bonuses) is withheld at 22%. Any amount over $1 million is withheld at the top federal rate of 37%. This higher rate applies to the excess regardless of your actual tax bracket.
You can't change how the bonus is withheld, but you can increase pre-tax retirement contributions (401k, HSA) to offset taxable income. You can also adjust your W-4 to reduce withholding on subsequent paychecks to account for over-withholding on the bonus.
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