Bonus Tax Calculator 2026
Bonuses feel over-taxed because employers withhold a flat 22% federal rate plus FICA up front. Your bonus isn't actually taxed at a special higher rate — it's a withholding quirk. See what lands in your account from your 2026 bonus.
Used to check the Social Security wage base cap.
- Federal withholding (22%)
- $2,200.00
- FICA withholding
- $765.00
- Total withholding rate
- 29.7%
How this calculator works
- Most employers use the IRS percentage method: a flat 22% federal withholding on supplemental wages up to $1M (37% above that), plus normal Social Security and Medicare.
- At tax time the bonus is just ordinary income — if 22% over- or under-shot your real bracket, it settles in your refund or balance due.
- State withholding on bonuses varies and is not included here.
Frequently asked questions
Why did 40% of my bonus disappear?
Stacked withholdings: 22% federal + 7.65% FICA + state supplemental rates + possibly 401(k) deferrals. Much of any over-withholding comes back as a refund.
Are bonuses taxed at a higher rate than salary?
No. The 22% is withholding, not a tax rate. Your bonus is taxed with the rest of your income at your normal brackets when you file.
Can I reduce tax on a bonus?
Diverting part of it into your 401(k) (up to the annual limit) or HSA before payout lowers taxable income — ask payroll before the bonus is processed.
Related calculators
Disclaimer: Results are estimates for educational purposes only and are not tax, legal, or financial advice. Tax rules are simplified (credits, phase-outs, and local taxes may not be modeled). Verify important decisions with the IRS, your state tax authority, or a licensed professional.