Bonus Tax
Bonus Tax Calculator 2026
Understand how your bonus will be taxed and estimate your after-tax take-home pay.
How bonuses are taxed in 2026
Bonuses are taxed as ordinary income — the same marginal federal rates apply to bonus income as to regular wages. However, employers use a simplified supplemental withholding method for bonus payments made separately from regular paychecks.
Review IRS Publication 15 for the current federal supplemental-wage withholding method and percentage. State supplemental withholding methods vary.
Federal supplemental rate vs your actual rate
The supplemental withholding amount may be higher or lower than the final tax attributable to the bonus. Your final tax liability is determined when you file your return — withholding is just a prepayment.
FICA on bonuses
Social Security (6.2%) and Medicare (1.45%) apply to bonus payments, subject to annual wage base and threshold limits. If you have already reached the Social Security wage base limit for the year, no additional Social Security is withheld on the bonus.
Estimate your bonus take-home
The most practical approach: add your expected bonus to your annual salary and use the calculator below to see your total take-home at the higher income level. The difference between the two results approximates your bonus take-home.
Use the paycheck calculator to model bonus income — enter your salary + bonus as your annual salary.
Open calculator →Frequently Asked Questions
Are bonuses taxed at a higher rate than regular pay?
Bonuses are ordinary wage income for your annual tax return. A separately paid bonus check can look different because employers may use an IRS supplemental-wage withholding method. Review IRS Publication 15 for the current method and rate.
What is the supplemental withholding rate for bonuses in 2026?
Review IRS Publication 15 for the current supplemental-wage withholding method and percentage. The amount withheld is a prepayment, not your final annual tax rate.
Do bonuses affect my Social Security and Medicare taxes?
Yes. Bonus payments are wages and are generally subject to Social Security (6.2%) and Medicare (1.45%) withholding. If your total wages for the year exceed the Social Security wage base, no additional Social Security tax is withheld on the bonus.
How can I estimate my take-home on a bonus?
Add your bonus to your expected annual salary and run it through the paycheck calculator. The calculator will show you how an increased annual income affects your federal, state, and FICA withholding. Divide by pay periods to estimate per-paycheck impact.
Estimates only. Not tax, legal, or accounting advice. Terms of Service · Privacy Policy