This bonus tax calculator shows how much of a 2026 bonus you actually keep. The IRS treats bonuses as supplemental wages, most commonly withheld using the flat percentage method: 22% federal (rising to 37% on the portion of supplemental pay above $1 million), plus 6.2% Social Security, 1.45% Medicare, and any state supplemental tax. Enter your bonus to see federal withholding, FICA, and net take-home. Note this is withholding, not your final tax — over-withholding is refunded at filing.
The IRS classifies bonuses, commissions, and other extra pay as supplemental wages. Employers can withhold them two ways. The percentage (flat-rate) method — the most common — takes a flat 22% federal, jumping to 37% on supplemental wages above $1 million in a year. The aggregate method lumps the bonus with your regular paycheck and withholds using your W-4, which can pull more or less. FICA (6.2% Social Security up to $184,500 + 1.45% Medicare) always applies on top.
| Withholding | 2026 rate | On $10,000 |
|---|---|---|
| Federal supplemental | 22% | $2,200 |
| Social Security | 6.2% | $620 |
| Medicare | 1.45% | $145 |
| Net take-home | $7,035 |
So a $10,000 bonus leaves about $7,035 in a no-state-tax state — you keep roughly 70%. Add a state supplemental rate (for example California’s 6.6%) and the take-home drops further.
The flat 22% is a withholding rate, not a tax bracket. If your real marginal rate is lower than 22%, you get the excess back as a refund when you file; if it is higher (24%, 32%, 35%, 37%), you may owe a little more. The bonus is ultimately taxed as ordinary income with the rest of your wages. That is why a bonus can feel “over-taxed” up front but balance out at tax time.
Once your supplemental wages exceed $1 million in a calendar year, the portion above $1 million is withheld at the top 37% federal rate — mandatory, not optional. This mostly affects executives and large signing bonuses. The calculator applies 22% up to $1 million and 37% beyond it automatically.
You can soften a bonus’s tax hit by routing part of it into a traditional 401(k) or HSA (pre-tax), which lowers taxable income, or by timing a deductible expense in the same year. For the difference between the percentage and aggregate methods, see our aggregate vs percentage bonus guide.
Under the percentage method, 22% federal is withheld (37% on supplemental pay over $1 million), plus 6.2% Social Security up to $184,500 and 1.45% Medicare. A $10,000 bonus nets about $7,035 in a no-state-tax state.
The 22% is the IRS flat supplemental withholding rate, not a tax bracket. It is the standard employer method for bonuses. Your actual tax is settled on your return, so you may get part of it back or owe a bit more.
Not in the end. Bonuses are ordinary income taxed at your normal rates. The 22% flat withholding can be higher or lower than your real rate, but the difference is reconciled when you file your return.
Direct part of the bonus into a pre-tax 401(k) or HSA to reduce taxable income, or pair it with a deductible expense in the same year. You cannot avoid the 22% withholding up front, but you can reduce your final tax.
The portion of supplemental wages above $1 million in a calendar year is withheld at the mandatory 37% federal rate. Amounts up to $1 million use the 22% rate. This applies regardless of your W-4.