How bonuses are taxed
A bonus is ordinary income, but your employer withholds tax from it differently from your salary. With the flat method (IRS Publication 15) federal withholding is 22%, or 37% on supplemental wages over $1 million in the year. With the aggregate method the bonus is added to a regular paycheck and taxed as if you earned that much every pay period.
Either way, the final tax is settled on your return. If your top bracket is 10% or 12%, 22% withholding is more than you owe and the difference comes back as a refund; at 24% and above you may owe a little more. The calculator shows both numbers.
Bonus after taxes (flat 22% method)
Federal 22% plus Social Security and Medicare (7.65%), no state income tax. Social Security stops once your 2026 wages pass $184,500.
| Bonus | Federal 22% | Social Security | Medicare | Take-home |
|---|---|---|---|---|
| $500 | $110.00 | $31.00 | $7.25 | $351.75 |
| $1,000 | $220.00 | $62.00 | $14.50 | $703.50 |
| $2,000 | $440.00 | $124.00 | $29.00 | $1,407.00 |
| $2,500 | $550.00 | $155.00 | $36.25 | $1,758.75 |
| $5,000 | $1,100.00 | $310.00 | $72.50 | $3,517.50 |
| $10,000 | $2,200.00 | $620.00 | $145.00 | $7,035.00 |
| $15,000 | $3,300.00 | $930.00 | $217.50 | $10,552.50 |
| $20,000 | $4,400.00 | $1,240.00 | $290.00 | $14,070.00 |
| $25,000 | $5,500.00 | $1,550.00 | $362.50 | $17,587.50 |
| $50,000 | $11,000.00 | $3,100.00 | $725.00 | $35,175.00 |
| $100,000 | $22,000.00 | $6,200.00 | $1,450.00 | $70,350.00 |
Sources
- IRS Publication 15 (2026): supplemental wages, Social Security and Medicare
- IRS Publication 15-T (2026), Worksheet 1A and Annual Percentage Method tables, p. 10-12
- Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (as of January 1, 2026)
Rates checked November 3, 2026. State tax is the extra yearly state tax the bonus adds; some states withhold bonuses at their own flat supplemental rate. Local taxes are not included. This is an estimate, not tax advice.
Bonus tax questions
How much tax is taken out of a $5,000 bonus?
With the flat method, $1,100 federal income tax (22%), $310 Social Security (6.2%) and $72.50 Medicare (1.45%) are withheld, so you get $3,517.50 in a state with no income tax. State tax comes on top: in California, on a $60,000 salary, about $335 state income tax plus $65 SDI, leaving $3,117.46.
Why are bonuses taxed at 22%?
Bonuses are “supplemental wages”. IRS Publication 15 lets employers withhold a flat 22% federal income tax from them (37% on supplemental wages over $1 million in a year) instead of using your W-4. That is only withholding: the bonus is taxed as ordinary income on your return, so if your real bracket is 10% or 12% you get part of it back, and if it is 24% or more you may owe a little.
What is the aggregate method?
Your employer adds the bonus to your regular paycheck, figures withholding on the total as if you earned that much every pay period, and subtracts what was already withheld from the regular pay. Because the bonus looks like a much higher salary for that one check, it often withholds more than 22%, especially on weekly or biweekly pay.
How do I gross up a bonus?
To give someone a set amount after taxes, divide it by one minus the tax rates: $1,000 ÷ (1 − 0.22 − 0.0765) ≈ $1,421.46 in a state without income tax. Switch the calculator to “Take-home I want” to include state tax and payroll programs.
Can I lower the tax on my bonus?
You can put part of it into a traditional 401(k), if your plan allows deferrals from bonuses: that part is not subject to federal or most state income tax, though Social Security and Medicare still apply. Withholding itself does not change what you owe for the year; it only changes your refund.