Free Bonus Tax Calculator 2026: How Much of Your Bonus You Keep
See how much federal income tax, Social Security, Medicare and state tax is withheld from a bonus in 2026 with the 22% flat rate, what you take home, and how much to pay to give someone a set amount after taxes.
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A bonus often looks smaller than expected when it hits your account, because it is usually withheld at a flat 22% for federal income tax, plus Social Security, Medicare and any state tax. This free bonus tax calculator shows each deduction for 2026 and your take-home amount, and it can work backward to the gross bonus needed for a set amount after taxes.
Bonus tax calculator
Uses the flat-rate method from IRS Publication 15 for 2026: 22% federal withholding on bonuses paid separately from regular pay (37% on supplemental wages above $1 million), plus Social Security and Medicare. Employers may instead combine the bonus with a regular paycheck, which can withhold a different amount.
Key takeaways
- A $5,000 bonus paid separately has $1,100 of federal income tax (22%), $310 of Social Security and $72.50 of Medicare withheld: you keep $3,517.50, or $3,267.50 with a 5% state tax.
- Supplemental wages above $1 million in a year are withheld at 37%.
- Withholding is not the final tax. A bonus is taxed like any other wages when you file, so you may get part of the 22% back or owe more.
- To hand someone $3,000 after federal withholding, Social Security and Medicare, the gross bonus is about $4,264.
How bonuses are taxed in 2026
Bonuses, commissions, overtime and similar payments are supplemental wages. IRS Publication 15 gives employers two ways to withhold federal income tax on them:
| Method | How it works |
|---|---|
| Percentage (flat-rate) method | When the bonus is paid separately or shown separately from regular wages, the employer may withhold a flat 22%, without regard to your Form W-4. Supplemental wages above $1 million in the year must be withheld at 37%. |
| Aggregate method | The bonus is added to a regular paycheck and withholding is figured on the total as if it were one regular payment, which can withhold more or less than 22%. |
On top of income tax withholding, a bonus is subject to Social Security (6.2%, until your wages for the year reach $184,500) and Medicare (1.45%, plus 0.9% on wages above $200,000 in the year). Most states with an income tax also withhold, many at a flat supplemental rate.
Example: a $10,000 bonus with a 401(k) contribution
You contribute 5% of the bonus to your 401(k) and your state withholds 6%. The $500 contribution is not subject to federal income tax withholding, but Social Security and Medicare apply to the full bonus:
| Item | Amount |
|---|---|
| Bonus | $10,000.00 |
| 401(k) contribution (5%) | −$500.00 |
| Federal income tax (22% of $9,500) | −$2,090.00 |
| Social Security (6.2%) | −$620.00 |
| Medicare (1.45%) | −$145.00 |
| State tax (6% of $9,500) | −$570.00 |
| Take-home bonus | $6,075.00 |
Most states also exclude 401(k) contributions from state taxable wages, but a few, such as Pennsylvania, do not; check your pay stub.
Is a bonus taxed at a higher rate?
No. When you file your return, the bonus is simply part of your wages and taxed at your normal rates. The flat 22% is only the withholding. If your top bracket is 12%, you will likely get some of it back; if it is 24% or higher, you may owe a little more. The income tax calculator estimates your actual 2026 tax, and the tax brackets guide explains how the rates apply.
Grossing up a bonus
Employers who want an employee to receive an exact amount, for example a $3,000 holiday bonus, gross it up: they pay enough that the amount left after withholding equals the target. With 22% federal withholding, 6.2% Social Security and 1.45% Medicare, the total rate is 29.65%, so the gross bonus is $3,000 ÷ (1 − 0.2965) ≈ $4,264.39. Because each withholding amount is rounded to the cent on the pay stub, $4,264.38 already leaves exactly $3,000.00, which is the amount the calculator shows. Choose "Gross bonus needed" in the calculator for your rates.
Ways to keep more of a bonus
- Contribute to your 401(k): if your plan allows deferrals from bonuses, the contribution lowers your taxable income.
- Check your withholding: if bonuses regularly cause a large refund or balance due, adjust your Form W-4.
- Plan the timing: a bonus paid in January instead of December falls into the next tax year, which can matter if your income changes.
Frequently asked questions
How much tax is taken out of a $1,000 bonus?
With the flat-rate method: $220 of federal income tax, $62 of Social Security and $14.50 of Medicare, $296.50 in total, plus any state tax. You keep $703.50 before state tax.
Why was so much taken out of my bonus?
Besides the 22% federal withholding, Social Security, Medicare and state tax apply. If your employer added the bonus to a regular paycheck, the aggregate method can withhold even more, because it treats the larger paycheck as your normal pay.
Will I get the bonus tax back?
Possibly. If more was withheld than your actual tax on the bonus, the difference is part of your refund when you file. Social Security and Medicare are not refunded, except for Social Security withheld above the wage base when you had more than one employer.
Is a bonus subject to Social Security tax?
Yes, until your total wages for the year reach the $184,500 wage base in 2026. Medicare applies to all wages.
