Free Bonus Tax Calculator (2026)

Use our free bonus tax calculator to estimate how much federal tax will be withheld from your bonus check. Enter your bonus amount, filing status, and annual salary and we will show you your estimated net bonus after taxes. Updated for 2026.

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Bonus Tax Calculator

Bonus Amount ($) Annual Salary ($) (before bonus) Filing Status Bonus Tax Method

How This Free Bonus Tax Calculator Works

This free bonus tax calculator estimates your bonus taxes using two IRS-approved methods:

Percentage Method (most common): The IRS allows employers to withhold a flat 22% federal income tax on supplemental wages (like bonuses) up to $1,000,000. For bonuses over $1,000,000 the rate jumps to 37% on the amount above $1,000,000. This is the method most employers use.
Aggregate Method: Your bonus is added to your regular annual salary and federal tax is calculated on the combined total. The tax already estimated on your salary alone is subtracted, leaving the estimated tax owed on the bonus specifically. This method is more precise and may result in a higher or lower withholding depending on your total income.

Both methods also include Social Security (6.2%) and Medicare (1.45%) withholding on your bonus.

Free Bonus Tax Calculator FAQs

How much tax is taken out of a bonus?

For most employees, the IRS requires employers to withhold a flat 22% federal income tax on bonus payments under $1,000,000. On top of that, Social Security (6.2%) and Medicare (1.45%) are also withheld, bringing the typical total withholding to around 29-30% for most workers.

What is the difference between the Percentage Method and the Aggregate Method?

The Percentage Method applies a flat 22% federal withholding rate to your bonus regardless of your salary. The Aggregate Method adds your bonus to your annual salary and calculates tax on the combined total, which may result in a higher withholding rate if the combined income pushes you into a higher bracket.

Is my entire bonus taxed at 22%?

Only the federal income tax portion uses the flat 22% rate under the Percentage Method. Social Security and Medicare are also withheld separately. Your total effective bonus tax rate will be higher than 22% when all taxes are included.

Do bonuses get taxed differently than regular pay?

Yes. Bonuses are classified as supplemental wages by the IRS. This allows employers to use the flat 22% Percentage Method rather than the standard withholding tables used for regular paychecks.

Does this calculator include state taxes?

No. This free bonus tax calculator estimates federal taxes only. State income tax rates on bonuses vary by state and are not included in this estimate.

Where can I learn more about bonus tax withholding?

Visit the official IRS guidance page: IRS Publication 15 — Employer’s Tax Guide.

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Understanding Bonus Taxes

Getting a bonus is exciting — but many people are surprised by how much is withheld before the money hits their bank account. Our free bonus tax calculator helps you understand exactly where that money goes and what you can expect to take home.

Why Are Bonuses Taxed So Much?

Bonuses are classified as supplemental wages by the IRS. Because they are paid separately from your regular paycheck and in a lump sum, employers are required to withhold federal income tax at a flat 22% rate for bonuses under $1,000,000. When you add Social Security (6.2%) and Medicare (1.45%), the total withholding on a typical bonus can reach 29% or more before state taxes are even considered.

The Two IRS-Approved Bonus Tax Methods

Employers are allowed to use one of two IRS-approved methods for calculating bonus tax withholding:

Percentage Method: A flat 22% federal rate is applied directly to the bonus. This is the most common method because it is simple and predictable. Use our free bonus tax calculator to see exactly what this looks like for your bonus amount.
Aggregate Method: The bonus is combined with the employee’s regular wages and tax is calculated on the total. This method can result in higher withholding if the combined income pushes the employee into a higher tax bracket.

Will You Get That Money Back?

Possibly. The amount withheld from your bonus is not the final amount you owe. It is just a withholding estimate. When you file your annual tax return, your actual tax liability is calculated on your total income for the year. If too much was withheld from your bonus, you may receive a refund. If too little was withheld, you may owe additional taxes.

Social Security and Medicare on Bonuses

Social Security (6.2%) and Medicare (1.45%) are always withheld on bonuses just like regular wages. The Social Security wage base for 2026 is $168,600. If your regular salary has already exceeded this amount before the bonus is paid, no additional Social Security tax will be withheld from the bonus. Medicare has no wage base limit and applies to all earnings including bonuses.

Strategies to Reduce Bonus Tax Withholding

While you cannot avoid paying taxes on a bonus, there are some legal strategies that may reduce your total tax burden:

Increase your 401k contribution: Contributing more to a pre-tax retirement account reduces your taxable income.
Ask for a different pay schedule: Some employers will split a bonus across two calendar years to reduce the tax impact.
Adjust your W-4: If your total withholding for the year will be too high, you may be able to claim additional allowances to reduce future withholding.

Always consult a qualified tax professional before making changes to your withholding or contribution strategies.