In 2026, employers withhold federal tax on most bonuses at a flat 22% supplemental rate (rising to 37% on bonus amounts over $1 million), plus 6.2% Social Security, 1.45% Medicare, and any state income tax. So a $5,000 bonus typically has about $1,100 federal tax + $382 FICA withheld before any state tax — leaving roughly $3,500 in a no-income-tax state. Crucially, this is withholding, not your final tax bill.
The two ways bonuses are withheld
The IRS lets employers use one of two methods for "supplemental wages" like bonuses:
- Percentage (flat-rate) method — most common. A flat 22% federal income tax is withheld on the bonus, separate from your salary. Bonuses above $1 million are withheld at 37% on the excess.
- Aggregate method. The bonus is added to your most recent paycheck and withheld as if that combined amount were your normal pay. This can withhold even more, because it pushes the combined amount into a higher withholding bracket.
FICA and state tax still apply
On top of the 22% federal income tax withholding, every bonus is also subject to:
- Social Security — 6.2% (up to the annual wage base).
- Medicare — 1.45% (plus 0.9% extra above $200,000 of wages).
- State income tax — varies; nine states (Texas, Florida, Washington and others) take nothing.
See how your state affects take-home in our take-home pay by state study, or get an exact figure with the salary after-tax calculator.
"Why was my bonus taxed so much?"
This is the #1 bonus question — and the answer is reassuring: bonuses are not taxed at a higher rate. They are ordinary income, taxed on your return at your normal brackets. The flat 22% withholding often takes more than your true marginal rate, especially if you earn under ~$100k. The difference comes back to you as a refund when you file. (If you earn a lot, 22% may under-withhold and you could owe.)
Worked example: a $10,000 bonus
- Federal withholding (22%): $2,200
- Social Security (6.2%): $620
- Medicare (1.45%): $145
- Take-home before state tax: ≈ $7,035
In a 5% state, subtract another $500. Use the US paycheck calculator to model your own salary plus bonus.
How to keep more of your bonus
- Boost pre-tax 401(k) or HSA contributions in the bonus period to lower taxable income — see our 401(k) calculator.
- If your employer offers it, ask whether the bonus can be deferred or partly contributed to retirement.
- Adjust your W-4 if bonuses regularly leave you with a big refund (an interest-free loan to the IRS) or a balance due.
Frequently asked questions
- What is the bonus tax rate in 2026? 22% federal supplemental withholding (37% above $1M), plus 6.2% Social Security, 1.45% Medicare, and state tax.
- Are bonuses taxed higher than salary? No — same rates on your return; only the withholding looks higher.
- Will I get some bonus tax back? Often yes, as a refund, if 22% withholding exceeded your true rate.
This guide is general information, not tax advice. For your situation, consult a tax professional. Figures are 2026 estimates.