How Bonuses Are Taxed on Your Paycheck
How much of a bonus you keep in 2026: the 22% flat withholding rate, the aggregate method, FICA and state tax, with worked take-home examples.
A bonus is taxed as ordinary income, but your paycheck may look as if it is taxed at a higher rate. This guide explains how employers withhold on bonuses in 2026 and how much you actually keep.
How Much of a Bonus Do You Keep?
Expect to keep roughly 65% to 75% of a bonus, depending on your state. With the 22% flat federal rate, 7.65% for Social Security and Medicare and no state income tax, you keep about 70.35%. A $10,000 bonus becomes about $7,035 for a single filer in Texas (engine figure).
| Bonus | Withheld at 22% | Actual federal tax | Social Security + Medicare | You keep |
|---|---|---|---|---|
| $1,000 | $220 | $220 | $76 | $704 |
| $5,000 | $1,100 | $1,100 | $382 | $3,518 |
| $10,000 | $2,200 | $2,200 | $765 | $7,035 |
| $25,000 | $5,500 | $5,500 | $1,912 | $17,588 |
The Two Ways Employers Withhold on Bonuses
A bonus is a supplemental wage, and employers may choose one of two methods.
- Percentage (flat) method: when the bonus is paid separately, the employer withholds a flat 22% federal income tax on supplemental wages up to $1 million in a year.
- Aggregate method: the bonus is added to your regular pay for the period, tax is figured on the total, and the regular-pay tax is subtracted. This often withholds more, because the check is treated as if you earned that much every pay period.
Supplemental wages over $1 million in a calendar year must be withheld at 37%.
Are Bonuses Really Taxed at a Higher Rate?
No. Bonuses are taxed at the same marginal rates as your other pay when you file your return. Withholding is only an advance payment. If 22% was withheld and your real marginal rate is 12%, the difference comes back as a refund or lower balance due. If you are in the 24% bracket or higher, the flat rate may withhold too little.
FICA and State Tax on Bonuses
Social Security (6.2% up to $184,500) and Medicare (1.45%) apply to bonuses like any wages. Most states either tax the bonus at a supplemental rate or add it to regular wages. States with no income tax withhold nothing. Use the state calculators to see your state.
How to Model a Bonus in the Calculator
Open the salary paycheck calculator, expand More options and enter the amount in Annual bonus. The result shows the extra annual take-home. It is a full-year estimate, not the withholding shown on the bonus check itself.
Ways to Keep More of a Bonus
- Ask to send part of the bonus to a traditional 401(k) or HSA before it is paid, which lowers taxable wages.
- Update your W-4 if the flat rate withholds too little for your bracket.
- Ask whether your employer pays bonuses as a separate check (flat method) or combined (aggregate method).
Frequently Asked Questions
What percent of a bonus is taken out for taxes?
A typical federal-only figure is 22% flat withholding plus 7.65% FICA, about 29.65% before state tax. Your actual tax is settled on your tax return.
Why is my bonus check so small?
Federal withholding, Social Security, Medicare, state tax and any 401(k) or benefit deductions all come out. If your employer used the aggregate method, federal withholding may be higher than 22%.
Is a bonus taxed twice?
No. It is taxed once. The withheld amount is credited against your total tax when you file.
Can I ask my employer to withhold less on a bonus?
Employers apply the supplemental wage rules, so you cannot choose a lower flat rate. You can change your W-4 or defer part of the bonus into a retirement account.
Are commissions taxed like bonuses?
Commissions are supplemental wages when paid separately from regular pay, so the same 22% flat or aggregate methods can apply.
How these numbers are figured: 2026 IRS withholding rules (Publication 15-T) and state figures last verified September 2026. Results are estimates. Read the full methodology and sources.