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
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.
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%
Keep your whole tax picture in one place
Jupid connects to your bank, categorizes transactions with 95.9% accuracy, and its AI accountant answers tax questions in WhatsApp or iMessage.
Flat 22% supplemental rate
Flat 10.23% supplemental rate
Withheld vs what you may actually owe
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.
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.
| Withheld | Flat rate | Aggregate |
|---|---|---|
| Federal income tax | $2,200 | $2,812 |
| CA income tax | $1,023 | $930 |
| Net bonus | $5,882 | $5,364 |
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.
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.
| State | 2026 bonus withholding | Calculator |
|---|---|---|
| California | Flat 10.23% (optional) | This page |
| Arizona | Your Form A-4 rate (0.5% to 3.5%, 2% default) | Arizona bonus tax |
| Nevada | No state income tax | Nevada bonus tax |
| Oregon | Flat 8% (optional) | Oregon bonus tax |
California Paycheck Calculator
Take-home pay on your regular salary, per paycheck.
California Hourly Paycheck Calculator
Hourly pay with overtime, after federal and state taxes.
California Tax Withholding Calculator
Check whether your W-4 withholding covers the bonus year.
Commission Calculator
Work out commission pay, which is withheld like a bonus.
State withholding on a bonus runs from 0% in the nine states without a wage income tax to more than 10%. Pick a state to see its 2026 rule.
Section 7: 22% flat rate on supplemental wages, 37% above $1 million
California rule for withholding on supplemental wages
California Employee's Withholding Allowance Certificate
$24,500 employee deferral limit for 2026
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.
Set up in minutes. Cancel anytime.
Jupid connects to your bank and categorizes every transaction automatically. Ask its AI accountant about your bonus or your taxes in WhatsApp or iMessage.