Bonus Tax Calculator 2026 – How Much of Your Bonus You Keep

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How bonuses are taxed

The IRS calls bonuses, commissions, severance and similar payments supplemental wages. They are taxed the same as your salary when you file your return, but your employer can withhold federal tax on them in a different way (IRS Publication 15). On top of income tax withholding, a bonus also has Social Security (6.2%, until your wages reach $184,500 for the year) and Medicare (1.45%, plus 0.9% above $200,000) taken out, and state tax and state payroll programs where they apply.

Percentage (22%) vs aggregate method

For a single filer earning $80,000 who gets a $10,000 bonus in Texas, the flat method withholds $2,200 of federal tax and the aggregate method, on a biweekly paycheck, about $2,822. The real extra federal tax is $2,200, because the bonus falls in the 22% bracket. The calculator shows both methods side by side.

Bonuses over $1 million (37%)

Once your supplemental wages from one employer pass $1 million in a calendar year, every dollar above $1 million must be withheld at 37%, the top tax rate, whatever your W-4 says. Enter bonuses already paid this year and the calculator splits the bonus at the $1 million mark.

State bonus withholding rates

Many states set a flat supplemental rate for bonuses paid separately; others withhold using their regular tables (Patriot Software state chart, 2026):

No state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. All other states and Washington DC withhold on bonuses using their regular withholding, and the calculator estimates that for you. Rates can change; your employer's payroll uses the state's current rule.

Withholding vs actual tax: why you may get some back

Withholding is only a prepayment. When you file, your bonus is added to the rest of your income and taxed at your real rates. If more was withheld than the bonus really costs, the difference comes back in your refund; if less, you owe it. The calculator's "Real tax" column works out the actual extra tax for the year, and "At Tax Time" shows the gap.

Examples for a single filer earning $80,000 with a $10,000 bonus paid separately, 2026: in New York the flat 11.7% state rate withholds $1,170, but the bonus really adds about $547 of state tax, so about $623 comes back at tax time. In Texas and Pennsylvania the flat method is close to exact.

How to reduce tax on a bonus

• 401(k): if your plan allows, put part of the bonus into a traditional 401(k). That part skips federal and most state income tax (not Social Security or Medicare). Putting half of a $10,000 bonus into a 401(k) in Texas cuts the tax on it from about $2,965 to $1,865.
• HSA: an HSA contribution through payroll also skips Social Security and Medicare.
• Timing: a bonus paid in January instead of December falls in the next tax year, which helps if your income will be lower then.

Examples

Single filer, $80,000 salary, bonus paid separately (flat method), 2026:

Methodology and last updated

The flat method withholds 22% federal (37% on supplemental wages over $1 million) plus the state's supplemental rate, or its regular withholding where it has none. The aggregate method is estimated by annualizing a paycheck that includes the bonus and subtracting the regular paycheck's tax. Social Security, Medicare and state programs are the same in both. The real tax compares full-year tax with and without the bonus using the 2025 and 2026 federal rules (Rev. Proc. 2025-32) and the same state rules as our state paycheck calculators, for a single job with no other deductions. Results are estimates, not tax advice.

Last reviewed: November 1, 2026.