Bonus Tax Calculator 2026
What's Withheld at 22% — and What You'll Really Owe

Federal income tax is usually withheld at a flat 22% if the bonus is paid or identified separately and your employer withholds from your regular pay. On top of that come 6.2% Social Security (until your wages reach $184,500), 1.45% Medicare (plus 0.9% once your wages pass $200,000), and any state and local tax.

Probably the aggregate method: your employer added the bonus to a regular paycheck and withheld as if you earned that much every pay period, which pushes the annualized figure into a higher bracket. It's only withholding — at tax time the bonus is simply added to your income, and the excess comes back as a refund.

No. Bonuses are ordinary income, taxed at the same rates as your salary when you file. The 22% is only a withholding rate.

If your top bracket is 12%, you'll likely get some back; if it's 24% or more, you may owe a little more.

Once an employee's supplemental wages from one employer (and businesses under common control) exceed $1,000,000 in a calendar year, the excess must be withheld at 37%, regardless of Form W-4.

You can ask to put part of it into your 401(k) (pre-tax contributions lower income tax, though not FICA), up to the annual limit, if your plan allows deferrals from bonuses. The tax owed is the same whichever withholding method is used; only the timing differs.