So how much tax on a $5,000 bonus in 2026? The quick answer: about $1,482.50 in federal income tax and FICA withholding, leaving roughly $3,517.50 take-home before state tax. That breaks down to $1,100 federal (the flat 22% supplemental rate), $310 Social Security, and $72.50 Medicare. Use the calculator to add your state and year-to-date wages for an exact figure.
A $5,000 bonus is a supplemental wage. Here is exactly how it is taxed at the federal level in 2026, assuming the employer pays it separately and uses the flat percentage method:
| Component | Rate | Amount on $5,000 |
|---|---|---|
| Federal income tax (supplemental) | 22% | $1,100.00 |
| Social Security | 6.2% | $310.00 |
| Medicare | 1.45% | $72.50 |
| Total federal-side withholding | 29.65% | $1,482.50 |
| Take-home (no state tax) | — | $3,517.50 |
State tax changes your net. Here is the approximate take-home on a $5,000 bonus across common state scenarios:
| State scenario | State tax on bonus | Approx. take-home |
|---|---|---|
| Texas / Florida / 7 other no-tax states | $0 | $3,517.50 |
| Flat 5% state (e.g., parts of the Midwest) | $250.00 | $3,267.50 |
| New York (~6.85% supplemental) | $342.50 | $3,175.00 |
| California (~9.3% on bonus) | $465.00 | $3,052.50 |
Remember: 22% is the withholding, not your final tax. Your actual federal tax on the $5,000 depends on your marginal bracket, reconciled at filing:
| Your marginal bracket | True federal tax on $5,000 | vs. $1,100 withheld |
|---|---|---|
| 10% | $500 | ~$600 refunded |
| 12% | $600 | ~$500 refunded |
| 22% | $1,100 | even |
| 24% | $1,200 | ~$100 owed |
| 32% | $1,600 | ~$500 owed |
You cannot make the bonus tax-free, but you can defer the income tax: contribute part of the $5,000 to a pre-tax 401(k) or HSA. Putting $2,000 into a 401(k), for example, removes $440 of federal income-tax withholding now (22% of $2,000), though Social Security and Medicare still apply.
No. The OBBBA "no tax on overtime" and "no tax on tips" deductions (2025-2028) do not cover bonuses. A $5,000 bonus is fully taxable. If part of your pay is true FLSA overtime premium, that separate amount may qualify — see our no-tax-on-overtime calculator.
| Bonus | Federal+FICA withheld (29.65%) | Take-home (no state) |
|---|---|---|
| $2,500 | $741.25 | $1,758.75 |
| $5,000 | $1,482.50 | $3,517.50 |
| $7,500 | $2,223.75 | $5,276.25 |
| $10,000 | $2,965.00 | $7,035.00 |
At the flat federal supplemental rate, a $5,000 bonus has $1,100 (22%) federal income tax withheld, plus $310 Social Security (6.2%) and $72.50 Medicare (1.45%) — about $1,482.50 total, leaving roughly $3,517.50 take-home before any state tax.
With no state tax, about $3,517.50. In a 5% state, roughly $3,267.50. In a high-tax state like California (~9.3% on the bonus), closer to $3,000. Use the calculator above for your exact state.
The IRS flat supplemental rate is 22%, which is $1,100 on $5,000. Add FICA (7.65% = $382.50) and the total federal-side withholding is $1,482.50. If your employer used the aggregate method, withholding can be higher.
Possibly. The 22% federal withholding is an estimate. If your marginal rate is 10% or 12%, you over-paid and recover the difference at tax time. If you are in the 24%+ bracket, you may owe a bit more.
Withholding is still 22% ($1,100) up front, but your true federal tax on the bonus is about 12% ($600). The ~$500 difference typically returns as part of your refund. FICA of $382.50 is not refundable.
You cannot exempt it, but routing part into a pre-tax 401(k) or HSA defers income tax. Putting the full $5,000 into a 401(k) (within limits) defers all $1,100 of federal income tax, though FICA still applies to wages.
Only the portion above a bracket threshold is taxed at the higher rate — brackets are marginal. A $5,000 bonus rarely changes your bracket meaningfully, and it never re-taxes your existing income at a higher rate.
No. A signing bonus is a supplemental wage taxed exactly like a year-end bonus: 22% federal withholding plus FICA plus state tax.