Bonus Tax Calculator
Built & reviewed by Nandu Kannan · Overtime rules cited to primary statutes
See what you actually keep from a bonus in 2026. This uses the accurate aggregate method (your real marginal rate) and also shows the IRS flat 22% supplemental withholding for comparison — by state and filing status.
For comparison, the IRS flat supplemental method withholds 22% federal (37% above $1M) plus FICA on the bonus: about $0 withheld. That's withholding, not your final tax — the aggregate figure above is closer to what you actually keep.
2026 estimate (aggregate method): tax on salary+bonus minus tax on salary alone. Ignores local tax, credits and state supplemental rules. Not tax advice.
Withholding vs actual tax
The reason a bonus looks brutally taxed is withholding: employers default to a flat 22% federal rate plus FICA and state. But your bonus is really taxed at your marginal rate when you file, so the aggregate figure above is the better estimate of what you keep. If too much was withheld, the excess comes back as a refund.
Frequently asked questions
How are bonuses taxed?
A bonus is ordinary income, taxed at your normal rates — but employers usually withhold it using the IRS flat supplemental rate of 22% federal (37% on amounts over $1 million), plus FICA. That is withholding, not your final tax: at filing, the bonus is taxed at your real marginal rate, so you may get some back or owe a little more.
Why was so much taken out of my bonus?
The 22% flat federal withholding plus 6.2% Social Security, 1.45% Medicare and state withholding can take a big visible bite — often 30%+ — even if your actual tax rate is lower. The aggregate calculation here estimates what you truly keep once everything is reconciled.
What is the aggregate method?
It calculates tax on your salary plus bonus, subtracts tax on your salary alone, and the difference is the bonus’s real marginal tax. This is more accurate for your final take-home than the flat 22% withholding shortcut.
Can I reduce tax on my bonus?
You can lower taxable income by routing part of the bonus into a 401(k) or HSA (if your employer allows), which defers or avoids income tax on that portion. FICA still applies to 401(k) contributions. This is general information, not tax advice.
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