Bonus Tax Calculator

See how much of your bonus goes to taxes. Compare flat (22%) and aggregate withholding methods.

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Filing status

Best net bonus (aggregate method)

$6,105

from $10,000 gross bonus

Flat method (22%)

$6,012

Federal (22%)$2,200
State$1,023
Social Security$620
Medicare$145
Total tax$3,988

39.9% effective rate

Aggregate method

Better

$6,105

Tax on salary + bonus$20,930
Tax on salary alone$17,035
Incremental tax on bonus$3,895

39.0% effective rate

Difference: $93 more with the aggregate method.

Shows withholding estimates, not final tax liability. Your actual tax is determined when you file. Based on 2026 rates.

How it works

Bonuses are "supplemental wages" under IRS rules. Employers must withhold taxes but can choose between two methods:

Flat method: Withhold 22% federal tax on the bonus amount (37% on bonus amounts over $1 million). Add state supplemental rate + FICA. Simple and predictable.

Aggregate method: Combine the bonus with your regular pay for the period, calculate total withholding on the combined amount, then subtract what was already withheld from regular pay. The difference is the bonus withholding.

Neither method determines your actual tax — that happens when you file your return. If too much was withheld, you get a refund. If too little, you owe.

State supplemental rates

Each state has its own supplemental withholding rate for bonuses. Select your state in the calculator or browse state-specific pages:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

FAQ

How are bonuses taxed?

Bonuses are supplemental income. Employers withhold using the flat method (22%) or aggregate method. Your actual tax is settled when you file.

Why does my bonus seem taxed at 40%?

Federal (22%) + state + FICA add up. In high-tax states, total withholding can reach 40%+. But actual tax depends on your annual brackets.

Which method is better — flat or aggregate?

It depends on your salary and bonus size. Use the calculator to compare both for your specific situation.

Can I reduce taxes on my bonus?

Increase 401(k) contributions in the bonus pay period. The pre-tax deduction reduces your taxable supplemental income.

Are bonuses taxed at 40%?

No. It may feel like 40% because federal (22%) + state + FICA add up. The actual tax on your bonus depends on your total annual income and brackets when you file.

Related tools

This shows withholding estimates based on 2026 rates. Actual tax liability is determined when you file your return. Consult a tax professional for advice.