California Bonus Tax

California Bonus Tax Calculator 2026

California withholds a flat 10.23% for state income tax on bonuses, on top of the 22% federal supplemental rate, Social Security and Medicare. See your net bonus, what gets withheld, and how much of it may come back when you file.

Reviewed by Slava Akulov, CEO & Co-Founder at Jupid · Last updated: October 2026

Bonus Details

About $78,000 a year before the bonus

Capped at the 2026 limit of $24,500. Leave at 0% if your plan does not take deferrals from bonuses.

Your California Bonus, After Withholding

Net bonus (cash in your account)

$5,882

from a $10,000 bonus in California, 2026

Total withheld

$4,118

Share of the bonus withheld

41.2%

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Withholding Breakdown

Bonus (gross)$10,000
Federal income tax

Flat 22% supplemental rate

$2,200
Social Security (6.2%)
$620
Medicare (1.45%)$145
CA state income tax

Flat 10.23% supplemental rate

$1,023
CA SDI (includes paid family leave)$130
Total withheld$4,118
Net bonus$5,882

Withheld vs what you may actually owe

Income tax withheld (federal + state)$3,223
Income tax the bonus adds for the year (federal bracket 22%)$3,124
Likely back at filing+$99

Assumes your regular pay is your only income and you take the standard deduction. Social Security, Medicare and state payroll taxes are final and do not change at filing.

Flat Rate vs Aggregate Method

Your employer picks the method. The aggregate method adds the bonus to one regular paycheck and withholds as if you earned that much every pay period.

WithheldFlat rateAggregate
Federal income tax$2,200$2,812
CA income tax$1,023$930
Net bonus$5,882$5,364

How California Withholds Tax on Bonuses in 2026

CA bonus withholding

10.23%

Federal flat rate

22%

Federal, above $1M

37%

Social Security + Medicare

7.65%

California withholds 10.23% on bonuses and stock options paid separately from regular wages. Other supplemental pay, such as overtime, commissions and severance, is withheld at 6.6%.

If the bonus is paid in the same check as your regular wages, the employer must treat the total as regular wages and use the regular withholding schedules.

California SDI (1.3% in 2026, with no wage cap) also comes out of the full bonus.

Source: California EDD, 2026 California Employer's Guide (DE 44), checked October 30, 2026.

Is a Bonus Taxed Higher in California?

No. A bonus is ordinary wage income. It only looks heavily taxed because the employer withholds at flat rates instead of your personal rate. When you file your 2026 return, the bonus is added to your salary and taxed at the same federal brackets and California rates as the rest of your pay.

The federal 22% is a good fit for people in the 22% bracket. If your income keeps you in the 10% or 12% bracket, the flat rate over-withholds and the extra comes back as a refund. If the bonus pushes you into the 24%, 32% or higher bracket, 22% is too little and you will owe the difference in April. The calculator compares both numbers for your salary.

Social Security and Medicare work differently: they are a flat 7.65% on wages and are not settled at filing. The one exception is Social Security on wages above $184,500 in 2026. Once your salary plus bonus passes that cap, the 6.2% stops. If two employers both withheld it, you claim the excess back on your return.

Bonus Withholding in States Near California

State2026 bonus withholdingCalculator
CaliforniaFlat 10.23% (optional)This page
ArizonaYour Form A-4 rate (0.5% to 3.5%, 2% default)Arizona bonus tax
NevadaNo state income taxNevada bonus tax
OregonFlat 8% (optional)Oregon bonus tax

California Bonus Tax FAQ

Official References

Estimates only. Federal aggregate withholding and the tax you may owe are approximated with the 2026 brackets and standard deduction; California amounts use the state rates in our paycheck calculator. Local taxes, credits, other income and employer-specific payroll setups are not included. Consult a tax professional for advice on your situation.

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