Bonus Tax (Withholding) Calculator
Estimate how much federal tax will be withheld from your bonus using the flat 22% method or aggregate method.
📅 Tax Year:
Calculate Bonus Withholding
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How It Works
Bonuses are "supplemental wages" and can be withheld using two IRS-approved methods:
Flat Rate Method (Most Common)
- 22% federal withholding on bonuses up to $1 million
- 37% on bonus amounts exceeding $1 million
- Simple, predictable, used by most employers
Aggregate Method
- Bonus added to regular wages for that pay period
- Tax calculated on combined amount at marginal rates
- May result in higher withholding initially
Important Notes
Withholding is NOT your actual tax liability. At year-end, your bonus is taxed at your marginal rate like regular income. If too much was withheld, you'll get a refund.
Examples
Example 1: $10,000 Bonus, Flat Method
Withholding: $10,000 × 22% = $2,200
Net bonus: $7,800
Example 2: $1,500,000 Bonus, Flat Method
First $1M: $1,000,000 × 22% = $220,000
Excess $500K: $500,000 × 37% = $185,000
Total:
$405,000
What this calculator does
This page turns the visible tax inputs into a planning estimate that can be checked against official forms and records. It is designed for quick comparison, not as a substitute for professional tax advice.
How to use this calculator
- Enter the filing status, income, deduction, credit, withholding, and other fields that apply to your situation.
- Run the calculator and review the tax estimate, rate, deduction, or planning result shown on the page.
- Compare the result with IRS forms, state rules, and your own records before making payment or filing decisions.
Frequently Asked Questions
Bonus tax calculator after taxes 2026?
Focus on the net result, not the headline amount. For the Bonus Tax (Withholding) Calculator, start with bonus amount, regular wages, pay frequency, W-4 setup, FICA wage base status, state tax, and whether the employer uses flat or aggregate withholding. Then use: net bonus = gross bonus - federal withholding - Social Security - Medicare - state and local withholding - other deductions. On a $5,000 bonus, a 22% federal supplemental withholding alone is $1,100 before FICA, state tax, retirement deductions, or benefits. Read the result as estimated take-home bonus and each withholding layer. Large supplemental wages over $1 million are subject to the mandatory highest-rate withholding on the excess.
How much will my bonus be after taxes?
Use the Bonus Tax (Withholding) Calculator with bonus amount, regular wages, pay frequency, W-4 setup. The working formula is net bonus = gross bonus - federal withholding - Social Security - Medicare - state and local withholding - other deductions. On a $5,000 bonus, a 22% federal supplemental withholding alone is $1,100 before FICA, state tax, retirement deductions, or benefits. Check estimated take-home bonus and each withholding layer. Large supplemental wages over $1 million are subject to the mandatory highest-rate withholding on the excess.
Bonus withholding calculator flat method?
Under the flat supplemental method, many bonuses are withheld at 22% for federal income tax, then FICA and state withholding are added. Enter the gross bonus, Social Security wage-base status, Medicare wages, state rate, and any retirement deductions. For example, a $10,000 bonus has $2,200 of federal withholding before payroll taxes. The final tax on your return may be higher or lower because the bonus is still ordinary wage income.
Why was my bonus withheld at 22 percent and FICA?
Use the calculator for a working estimate instead of relying on a rough guess. For the Bonus Tax (Withholding) Calculator, start with bonus amount, regular wages, pay frequency, W-4 setup, FICA wage base status, state tax, and whether the employer uses flat or aggregate withholding. Then use: net bonus = gross bonus - federal withholding - Social Security - Medicare - state and local withholding - other deductions. On a $5,000 bonus, a 22% federal supplemental withholding alone is $1,100 before FICA, state tax, retirement deductions, or benefits. Read the result as estimated take-home bonus and each withholding layer. Large supplemental wages over $1 million are subject to the mandatory highest-rate withholding on the excess.
How to calculate net bonus after federal tax?
Build the estimate in order. First gather bonus amount, regular wages, pay frequency, W-4 setup, FICA wage base status, state tax, and whether the employer uses flat or aggregate withholding. Then apply this working formula: net bonus = gross bonus - federal withholding - Social Security - Medicare - state and local withholding - other deductions. Use the calculator output for estimated take-home bonus and each withholding layer. On a $5,000 bonus, a 22% federal supplemental withholding alone is $1,100 before FICA, state tax, retirement deductions, or benefits. Large supplemental wages over $1 million are subject to the mandatory highest-rate withholding on the excess.
Bonus tax rate over one million dollars?
For supplemental wages above $1 million in a calendar year, the excess is subject to mandatory flat federal withholding at 37%. Amounts at or below $1 million may use the regular supplemental rules, such as the 22% flat method when allowed. The calculator should split the bonus into the portion up to $1 million and the excess. FICA, Additional Medicare Tax, state tax, and deferred compensation can still change the take-home amount.
Bonus aggregate method calculator?
With the aggregate method, the employer adds the bonus to regular wages for the payroll period, figures withholding as if the combined amount were one paycheck, then subtracts the tax already withheld from regular pay. That can make withholding look higher than the flat 22% method, especially on a large bonus. Enter regular wages, bonus amount, pay frequency, W-4 settings, and pre-tax deductions. The result is withholding, not the final tax.
Use Cases
- Estimate the net take-home amount of an upcoming performance or year-end bonus.
- Compare flat-rate vs aggregate withholding to understand why your paycheck stub looks different.
- Plan W-4 adjustments after receiving a large bonus to avoid under- or over-withholding for the rest of the year.
- Budget for sign-on bonuses, commissions, or retention payments before they hit your bank account.
- Determine whether a bonus will push you into a higher tax bracket at year-end filing.
Assumptions & Limitations
- This calculator estimates federal income tax withholding only; Social Security, Medicare, and state taxes are not included.
- The flat 22% rate applies to the first $1 million in supplemental wages; the 37% rate applies to amounts over $1 million per IRS rules.
- The aggregate method uses a simplified marginal-rate estimate and may differ from your employer's exact payroll calculation.
- Withholding is not the same as your final tax liability; your actual tax is determined when you file your annual return.
- Pre-tax deductions (401k, HSA, etc.) are not factored into this estimate and would reduce the taxable portion.
- This tool is for educational and planning purposes only and does not constitute tax advice. Consult a qualified tax professional for your specific situation.
Sources & References
- IRS Publication 15 (Circular E) – Employer's Tax Guide
- IRS Publication 15-T – Federal Income Tax Withholding Methods
- IRS Supplemental Wage Withholding Rules
- IRS Topic No. 751 – Social Security and Medicare Withholding Rates
- IRS Tax Inflation Adjustments for Tax Year 2026
Withholding rates and bracket thresholds are updated for the 2026 tax year. Always verify current figures on IRS.gov before making financial decisions.