Bonus Tax Calculator (2026)
Enter your bonus, salary and state to see how much federal, Social Security, Medicare and state tax will be withheld, and how much of the bonus you take home.
How bonuses are taxed
The IRS treats bonuses as supplemental wages. If your employer pays the bonus separately (or lists it separately on your paycheck) and withheld income tax from your regular pay this year or last year, it can withhold a flat 22% for federal income tax. The rest of the year's supplemental wages above $1 million must be withheld at 37%.
The other option is the aggregate method: the bonus is added to a regular paycheck and withholding is figured as if you were paid that much every pay period, then the tax already withheld from the regular pay is subtracted. In the IRS example, a $1,000 bonus on a $2,000 monthly salary is withheld $114 under the aggregate method versus $220 at 22%.
Social Security (6.2% until your wages reach $184,500) and Medicare (1.45%, plus 0.9% once wages pass $200,000) apply to bonuses just like regular pay.
State bonus tax rates for 2026
| State | Bonus withholding | Method | Take-home of $10,000 |
|---|---|---|---|
| Alabama | 5% | Optional flat supplemental rate | $6,535 |
| Alaska | No state income tax | No state income tax on wages | $6,985 |
| Arizona | 2% | Employee-elected percentage (Form A-4) | $6,835 |
| Arkansas | 3.7% | Required flat supplemental rate | $6,665 |
| California | 10.23% | Optional flat supplemental rate | $5,882 |
| Colorado | 4.4% | Regular withholding (aggregate method) | $6,551 |
| Connecticut | Regular withholding (≈5.5%) | Regular withholding (aggregate method) | $6,435 |
| Delaware | Regular withholding (≈6.6%) | Regular withholding (aggregate method) | $6,335 |
| District of Columbia | Regular withholding (≈8.5%) | Regular withholding (aggregate method) | $6,185 |
| Florida | No state income tax | No state income tax on wages | $7,035 |
| Georgia | 4.99% | Required flat supplemental rate | $6,536 |
| Hawaii | Regular withholding (≈7.6%) | Regular withholding (aggregate method) | $6,225 |
| Idaho | 5.3% | Optional flat supplemental rate | $6,505 |
| Illinois | 4.95% | Regular withholding (aggregate method) | $6,540 |
| Indiana | 2.95% | State-specific method | $6,740 |
| Iowa | 3.8% | Flat rate when federal uses 22% | $6,655 |
| Kansas | 5% | Flat rate when federal uses 22% | $6,535 |
| Kentucky | 3.5% | Regular withholding (aggregate method) | $6,685 |
| Louisiana | 3.09% | Regular withholding (aggregate method) | $6,726 |
| Maine | 5% | Optional flat supplemental rate | $6,485 |
| Maryland | 6.5% | Required flat supplemental rate | $6,385 |
| Massachusetts | 5% | State-specific method | $6,489 |
| Michigan | 4.25% | Required flat supplemental rate | $6,610 |
| Minnesota | 6.25% | Required flat supplemental rate | $6,366 |
| Mississippi | 4% | Regular withholding (aggregate method) | $6,635 |
| Missouri | 4.7% | Optional flat supplemental rate | $6,565 |
| Montana | 5% | Optional flat supplemental rate | $6,535 |
| Nebraska | 3.5% | Optional flat supplemental rate | $6,685 |
| Nevada | No state income tax | No state income tax on wages | $7,035 |
| New Hampshire | No state income tax | No state income tax on wages | $7,035 |
| New Jersey | Regular withholding (≈6.37%) | Regular withholding (aggregate method) | $6,314 |
| New Mexico | 5.9% | Flat rate when federal uses 22% | $6,445 |
| New York | 11.7% | Optional flat supplemental rate | $5,791 |
| North Carolina | 4.09% | Optional flat supplemental rate | $6,626 |
| North Dakota | 1.5% | Optional flat supplemental rate | $6,885 |
| Ohio | 2.75% | Required flat supplemental rate | $6,760 |
| Oklahoma | 4.5% | Optional flat supplemental rate | $6,585 |
| Oregon | 8% | Optional flat supplemental rate | $6,165 |
| Pennsylvania | 3.07% | Regular withholding (aggregate method) | $6,721 |
| Rhode Island | 5.99% | Optional flat supplemental rate | $6,326 |
| South Carolina | Regular withholding (≈5.21%) | Regular withholding (aggregate method) | $6,514 |
| South Dakota | No state income tax | No state income tax on wages | $7,035 |
| Tennessee | No state income tax | No state income tax on wages | $7,035 |
| Texas | No state income tax | No state income tax on wages | $7,035 |
| Utah | 4.45% | Regular withholding (aggregate method) | $6,590 |
| Vermont | 6.6% | Percentage of federal withholding | $6,364 |
| Virginia | 5.75% | Optional flat supplemental rate | $6,460 |
| Washington | No state income tax | No state income tax on wages | $6,896 |
| West Virginia | Regular withholding (≈4.58%) | State-specific method | $6,577 |
| Wisconsin | Regular withholding (≈5.3%) | Optional flat supplemental rate | $6,505 |
| Wyoming | No state income tax | No state income tax on wages | $7,035 |
Frequently asked questions
How much tax is taken out of a $10,000 bonus?
Federal withholding is a flat 22% ($2,200), plus 7.65% for Social Security and Medicare ($765). State tax depends on where you live: none in Texas (you keep about $7,035), 10.23% in California (about $5,882 after state disability insurance).
Why is my bonus taxed so much?
It usually isn't taxed more, just withheld differently. Employers often withhold a flat 22% federal rate on bonuses, or add the bonus to a regular paycheck and withhold as if you earned that much every pay period. Your actual tax is settled on your return at your normal bracket.
Is the 22% bonus rate final?
No. It is a withholding rate. When you file, the bonus is added to your other wages and taxed at your bracket. If your bracket is 12%, you'll get some back; if it is 24% or higher, you may owe more.
When does the 37% rate apply?
Only to supplemental wages above $1 million in a calendar year from the same employer. Everything up to $1 million can use the 22% flat rate.