Bonus Tax Calculator
Calculate how much of your bonus you actually take home for 2025-2026. Compare flat 22% supplemental withholding vs aggregate method, and see your real tax owed vs what is withheld.
Most employers use the flat 22% rate for bonus withholding.
Net Take-Home from Bonus
$7,035
from $10,000 bonus (Single, 2026)
Total Withheld
$2,965
Effective Rate
29.6%
Withholding Breakdown
Flat 22% supplemental rate
Withholding vs Actual Tax Owed
The difference between withholding and actual tax will be settled when you file your return.
Bonuses Are Taxed Like Regular Income
Your bonus is not taxed at a higher rate. It is simply withheld at a flat 22% for convenience. Your actual tax rate depends on your total annual income and marginal bracket. Any over- or under-withholding is reconciled when you file your tax return.
How Bonus Taxes Actually Work
Flat 22% Withholding
Most employers withhold a flat 22% for federal tax on bonuses up to $1M. Above $1M the rate is 37%. This is just withholding, not your actual tax rate.
Aggregate Method
Some employers combine your bonus with your regular paycheck and calculate withholding on the total. This can result in higher withholding since it looks like a larger paycheck.
Settled at Filing
Regardless of withholding method, your actual tax on the bonus depends on your total annual income. Over-withholding means a refund; under-withholding means you owe at filing time.
Bonus Tax Strategies
Why Your Bonus Seems Heavily Taxed
The flat 22% withholding plus FICA taxes can make it look like nearly a third of your bonus disappears. But this is just withholding. If your marginal rate is lower than 22%, you will get some back as a refund. If it is higher, you may owe more at filing.
Maximize Your 401(k)
Contributing part of your bonus to a 401(k) reduces your taxable income dollar for dollar. If your employer allows bonus deferrals, this is one of the most effective ways to reduce the tax hit on a large bonus.
Business Owner Bonus Timing
If you own a business and pay yourself a bonus, timing matters. Paying bonuses in a lower-income year or splitting across tax years can reduce the marginal rate applied to the bonus income.
Official References
This calculator uses current IRS supplemental wage and withholding rules:
- IRS Publication 15 (Circular E) — Employer's Tax Guide
Official guidance on withholding methods for supplemental wages
- IRC Section 3402 — Income Tax Collected at Source
Federal withholding requirements for wages and supplemental pay
- Supplemental Wage Withholding Rules
22% flat rate for bonuses under $1M, 37% for amounts over $1M
This calculator provides estimates. Your actual tax liability may vary. State tax rates are simplified top marginal rates. Consult a tax professional for personalized advice. Rates accurate as of March 2026.