See exactly how much federal tax, state tax, and FICA come out of your bonus — and what you'll actually take home.
The IRS classifies bonuses as supplemental wages and requires employers to withhold federal income tax at a flat 22% (up to $1,000,000). This is a withholding rate, not your actual tax rate. When you file your return, your bonus is taxed at your real marginal rate — so you may get money back (or owe a bit more) depending on your income bracket.
Federal supplemental withholding rate 22% (IRS Pub. 15). FICA applies to SS wage base remaining after regular wages. State rates are approximate marginal rates.
| Gross Bonus | $0 |
| Federal Withholding (22% supplemental rate) | $0 |
| FICA Taxes | $0 |
| ↳ Social Security (6.2%) | $0 |
| ↳ Medicare (1.45%) | $0 |
| State Income Tax | $0 |
| Total Withheld | $0 |
| Net Bonus Take-Home | $0 |
Your employer withholds at the flat 22% rate. Your actual tax owed depends on your total annual income — you'll settle up when you file.
The IRS requires employers to withhold federal income tax from bonuses at a flat 22% supplemental rate for bonuses up to $1,000,000 (37% above that). This is a withholding rate, not your final tax rate. When you file your return, your bonus income is taxed at your actual marginal rate — meaning you may receive a refund if 22% was more than your real bracket, or owe a bit more if you're in the 24%+ bracket.
The IRS classifies bonuses, commissions, and similar payments as "supplemental wages." For simplicity in employer payroll systems, the IRS allows (and often requires) a flat 22% withholding rate. This prevents employers from having to re-run your full payroll tax calculation every time a bonus is paid. It's a convenience rate — your actual tax liability is calculated annually when you file.
The percentage method withholds a flat 22% from your bonus check — this is what most employers use. The aggregate method adds your bonus to your most recent regular paycheck, calculates withholding on the combined amount, then subtracts the regular withholding. The aggregate method can result in more withholding if the bonus pushes you into a higher bracket. Either way, your actual year-end tax is the same.
Yes — but only on the portion of your bonus that falls under the Social Security wage base ($184,500 in 2026). If your regular salary is already at or above $184,500, no Social Security tax (6.2%) is withheld from your bonus. Medicare tax (1.45%) applies to all bonus income with no cap. An additional 0.9% Medicare surcharge applies if total wages exceed $200,000 (single) or $250,000 (married).
Yes. A large bonus added to your regular salary can push a portion of your income into a higher bracket. However, only the income above each threshold is taxed at the higher rate — not your entire income. The "aggregate method" comparison in this calculator shows your real marginal federal tax on the bonus versus the flat 22% withholding. For most earners under $100,000, 22% is more than their actual bracket — meaning they get a refund.
Yes. The most effective strategies: (1) Contribute to your 401(k) — many plans allow bonus contributions, which reduce your taxable income dollar-for-dollar. (2) Time the bonus — if you expect lower income next year, ask if the bonus can be deferred to January. (3) Max out your HSA if you have a qualifying high-deductible health plan. (4) Adjust your W-4 for the rest of the year to reduce regular withholding, offsetting the extra 22% already taken.
Yes. The IRS treats all bonuses — signing, performance, referral, retention, holiday, and spot awards — as supplemental wages subject to the same 22% federal withholding rate. The source or occasion for the bonus doesn't change how it's taxed. The only exception is non-cash fringe benefits, which have their own valuation rules.
When you file your annual tax return — typically February or March of the following year. If your employer withheld 22% but your effective federal rate on that income is lower (common for earners in the 10%–22% brackets), the excess becomes part of your refund. You can also adjust your W-4 to claim extra allowances for the remaining pay periods of the year to offset the over-withholding more immediately.