Bonus Tax Calculator
Estimate your after-tax bonus pay using either the IRS flat percentage method or the aggregate method based on your filing status and state tax rate. Use it when your employer pays a bonus and you want to know your actual take-home amount.
Last updated: September 2026
Formula below · 2 sources (IRS, Wikipedia) · Updated Sep 2026
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About this calculator
The IRS allows two methods for withholding federal income tax on supplemental wages like bonuses (Publication 15, section 7). Percentage (flat-rate) method: 22% of the bonus, or 37% on the part of a year's supplemental wages above $1 million (mandatory). Aggregate method: the employer adds the bonus to the regular wages of the same pay period, figures withholding on the total as if it were one regular paycheck, and subtracts the withholding on the regular pay alone. This calculator does that with the 2026 IRS Publication 15-T percentage method for a 2020-or-later W-4 (Step 2 unchecked, no Step 3 or 4 entries), using your regular pay, pay frequency and filing status, so the result depends on how high the combined paycheck annualizes. Both methods then subtract FICA (7.65%: 6.2% Social Security, which stops once your 2026 year-to-date wages pass $184,500, plus 1.45% Medicare) and your state rate. Net bonus = bonus − federal withholding − bonus × state rate − bonus × 7.65%. Withholding is not your final tax: the bonus is taxed as ordinary income on your return, and any over- or under-withholding is settled when you file.
How to use
Suppose you receive a $5,000 bonus, your state tax rate is 5%, and you file single. Percentage method: federal = $5,000 × 22% = $1,100; state = $250; FICA = $382.50; net bonus = $5,000 − $1,100 − $250 − $382.50 = $3,267.50. Aggregate method, with regular pay of $3,000 bi-weekly: withholding on a $8,000 paycheck annualizes to $208,000 − $8,600 = $199,400, giving $38,654 a year; withholding on the regular $3,000 alone annualizes to $69,400, giving $8,330. The difference, ($38,654 − $8,330) ÷ 26 = $1,166.31, is the federal withholding on the bonus (23.3%). Net bonus = $5,000 − $1,166.31 − $250 − $382.50 = $3,201.19.
Frequently asked questions
What is the difference between the percentage method and aggregate method for bonus taxes?
The percentage method withholds a flat 22% federal income tax on the bonus (37% on supplemental wages above $1 million in a year), regardless of your income. The aggregate method adds the bonus to a regular paycheck and withholds as if that larger paycheck were normal pay, so the result depends on your regular pay, pay frequency and W-4: a large bonus on top of a modest paycheck can be withheld at 24% or more because the combined check annualizes to a high income, while a small bonus on a low paycheck may be withheld at 12%. Neither method changes the tax you ultimately owe; only the amount withheld up front differs.
Why is FICA (7.65%) included in bonus tax withholding?
FICA taxes — comprising 6.2% for Social Security and 1.45% for Medicare — apply to all earned wages, including bonuses. The 7.65% combined rate is withheld from your bonus just as it is from your regular paycheck. Note that the Social Security portion (6.2%) only applies up to the annual wage base ($184,500 in 2026); if you've already exceeded that threshold, your bonus won't be subject to Social Security tax. Medicare tax has no wage cap, so the 1.45% always applies.
How can I reduce the taxes withheld from my bonus?
One strategy is to contribute a portion of your bonus to a pre-tax retirement account like a 401(k) before it is paid, reducing the taxable amount. You can also adjust your W-4 withholding allowances temporarily, though this affects your regular paychecks too. Keep in mind that withholding is not the same as actual tax liability — if too much is withheld, you'll receive a refund when you file. Consulting a tax professional before your bonus is paid can help you optimize your net take-home legally.