Commission Paycheck Calculator 2026

Enter your base salary and commission to see your take-home pay after taxes.

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Filing status

Best net commission (aggregate method)

$6,105

from $10,000 gross commission

Flat method (22%)

$6,012

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

39.9% effective rate

Aggregate method

Better

$6,105

Federal tax$2,200
State tax$930
Social Security$620
Medicare$145
Total tax$3,895

39.0% effective rate

Aggregate method saves you $93 on this commission.

Your employer chooses the withholding method. Either way, your actual tax liability is settled when you file your return — any over-withholding is refunded.

How commission income is taxed

Commission income is treated as ordinary W-2 wages for tax purposes. It is subject to federal income tax, state income tax, Social Security (6.2% up to $184,500), and Medicare (1.45% on all earnings, plus 0.9% above $200,000).

Employers typically withhold taxes on commissions using one of two methods:

  • Flat method (supplemental rate): 22% federal withholding on the commission amount, regardless of your salary. This is simpler but may over- or under-withhold compared to your actual bracket.
  • Aggregate method: Commission is added to your regular paycheck, and tax is calculated on the combined total. This uses your actual marginal bracket but may result in higher withholding if it pushes you into a higher bracket.

Either way, your actual tax liability is the same — withholding is just an estimate. Any over-withholding is refunded when you file your return.

Example: $75,000 base + $15,000 commission

A single filer in California earning $75,000 base salary plus $15,000 in commissions has a total income of $90,000. The commission is taxed at the marginal rate — since the base salary already fills the lower brackets, the commission is taxed at a higher effective rate than the salary alone.

Using the aggregate method, the incremental federal tax on the $15,000 commission is approximately $3,300 (22% marginal bracket), plus state tax and FICA.

FAQ

How is commission income taxed?

Commission income is taxed the same as regular wages — federal income tax, state income tax, Social Security (6.2%), and Medicare (1.45%). Employers may use the 22% flat supplemental rate or the aggregate method for withholding.

Is commission taxed higher than salary?

No. Commission is taxed at the same rates as salary. The perception of higher taxation comes from supplemental withholding (often 22% flat) which may differ from your actual effective rate.

What is the flat supplemental withholding rate?

The IRS allows employers to withhold a flat 22% on supplemental wages (commissions, bonuses, overtime) up to $1 million. Above $1 million, the rate is 37%.

Should I choose flat or aggregate withholding?

You typically don't get to choose — your employer decides. The flat method (22%) is simpler but may not match your actual bracket. The aggregate method uses your real marginal rate. Either way, your final tax bill is the same when you file.

Related tools

Estimates based on 2026 tax rates. Actual withholding may differ based on employer method and payroll system. Consult a tax professional for advice.