Bonus Tax 2026 Effective Rate Calculator
See exactly how much of your bonus goes to taxes in 2026: federal flat rate (22%), state withholding, and FICA. Compare supplemental vs aggregate withholding methods per IRS Publication 15-T.
How Bonus Taxes Work in 2026
Bonuses are classified as "supplemental wages" by the IRS and are subject to mandatory federal income tax withholding. Under IRS Publication 15-T (2026), the supplemental flat rate is 22% for supplemental wages up to $1 million in a calendar year, and 37% for amounts above $1 million. This flat rate applies regardless of your regular salary or tax bracket — it is a withholding mechanism, not your final tax liability.
The bonus withholding is simply a prepayment toward your annual tax bill. When you file Form 1040, your bonus income is added to all other income, and your actual tax is calculated on the combined total. If 22% was withheld but your true effective rate is lower, you receive the difference as a refund. If your effective rate is higher (e.g., you are in the 32% bracket), you may owe additional tax at filing time. Source: irs.gov/publications/p15. Last updated: May 2026.
Supplemental vs Aggregate Withholding Method
| Method | How Calculated | Who Uses It | Best When |
|---|---|---|---|
| Supplemental (Flat 22%) | 22% of bonus, flat | Most employers by default | Marginal rate ≈ 22% |
| Aggregate | Bonus + regular pay → bracket rate − regular withholding | Employers who choose; required when prior pay not identified | Marginal rate < 22% (lower earners) |
Employers can choose either method unless the bonus is included in a regular paycheck without separate identification, in which case the aggregate method is required. For employees in the 12% bracket, the aggregate method results in less withholding than the 22% flat rate — meaning a bigger net check. For employees in the 24%+ bracket, the 22% flat rate actually withholds less than their true marginal rate, meaning they may owe tax at filing.
FICA and Additional Medicare Tax on Bonuses
Bonuses are subject to FICA taxes: Social Security at 6.2% up to the 2026 wage base of $176,100, and Medicare at 1.45% on all wages. If your combined wages (salary + bonus) exceed $200,000 (single) or $250,000 (MFJ), the Additional Medicare Tax of 0.9% applies to the excess. Your employer withholds the 0.9% surtax only on wages they pay above $200,000 — if you have multiple jobs, you may need to reconcile on Form 8959. Source: IRS Publication 15, irs.gov/taxtopics/tc756.
Frequently Asked Questions
Why is 22% withheld from my bonus?
The IRS requires employers to withhold at a 22% supplemental flat rate for bonuses up to $1 million (37% above $1M). This is the mandatory supplemental withholding rate under IRS Publication 15-T. It doesn't mean you owe 22% total — your actual tax is determined when you file your return.
What is the aggregate method for bonus withholding?
Under the aggregate method, the employer adds the bonus to your most recent regular paycheck, calculates withholding on the combined amount at your marginal bracket rate, then subtracts the withholding already taken from the regular check. This often results in higher withholding than the flat 22% method for lower earners.
Will I get a bonus tax refund?
If your employer withholds 22% but your effective tax rate is lower, you'll get a refund when you file your return. For example, if your marginal rate is 12% but 22% was withheld, the 10% difference is returned as a refund. The withholding is not your final tax — it's a prepayment.
Does my bonus push me into a higher tax bracket?
Possibly. Bonuses are ordinary income, so they stack on top of your regular salary. If the combined total crosses into a higher bracket, only the income ABOVE the bracket boundary is taxed at the higher rate — not your entire income. This calculator shows the marginal bracket your bonus income lands in.
Is FICA withheld from a bonus?
Yes. Social Security (6.2%) applies up to the 2026 wage base of $176,100. Medicare (1.45%) applies to all wages, plus an Additional Medicare Tax of 0.9% on wages above $200,000 (single) or $250,000 (MFJ). FICA withholding on bonuses follows the same rules as regular wages. Source: IRS Publication 15.