Taxes
Paycheck Tax Calculator
Calculate your net take-home paycheck for 2026 across all 50 states + DC using official IRS Rev. Proc. 2025-32 tax brackets, FICA, and standard deductions.
2026 Statutory Rates
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Bonus Tax Calculator
Estimate your net take-home pay and complete tax withholding on an employee bonus. Model IRS 22% and 37% supplemental rates, 2026 Social Security caps ($184,500), Medicare, and state taxes.
Quick Answer: Under IRS Publication 15 (Section 7), bonuses and supplemental wages paid separately from regular salary are subject to a statutory flat federal withholding rate of 22% for cumulative supplemental wages up to $1,000,000 in a calendar year, and 37% on every dollar exceeding $1,000,000. In addition to federal withholding, bonuses are subject to FICA payroll taxes: 6.2% Social Security (up to the 2026 wage base of $184,500), 1.45% Medicare on all earnings, and 0.9% Additional Medicare on cumulative compensation over $200,000, plus applicable state withholding. Crucially, upfront withholding is not your final tax: bonuses are treated as ordinary income on Form 1040, and any discrepancy between withheld taxes and your annual marginal tax bracket is reconciled as a tax refund or balance due.
Bonus Gross-Up: Work Backwards From the Net Pay You Want
When an employer awards a bonus—such as a $5,000 spot performance award, a $10,000 sign-on bonus, or a relocation stipend—they often want the employee to receive that precise dollar figure in their bank account. If the payroll department cuts a check for exactly $5,000, statutory tax withholdings immediately reduce the cash received to around $3,500. A bonus gross-up solves this by increasing the initial gross payment so that after all federal, FICA, and state taxes are subtracted, the remaining net pay matches the desired target.
Because the additional gross pay is itself subject to taxes, you cannot simply add 22% or multiply by a flat percentage once. A bonus check calculation must work backwards mathematically through every layer of the statutory withholding stack: the 22% flat federal rate (or 37% for cumulative supplemental compensation above $1 million), 6.2% Social Security up to the annual limit ($184,500 for 2026), 1.45% Medicare, 0.9% Additional Medicare for earnings exceeding $200,000, and applicable state withholding.
Crucially, a gross-up calculation is based on statutory withholding rates. Supplemental withholding is an advance payment against your eventual tax return, not your final tax liability. When Form 1040 is filed, your bonus is combined with regular wages into adjusted gross income, and any variance between withholding and your final bracket is reconciled as a refund or balance due.
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Last reviewed: October 2026
Calculation Methodology: Bonus Tax Calculator
Mathematical Formula
Federal Withholding = (22% × Tier 1 up to $1M) + (37% × Tier 2 over $1M) | Social Security = 6.2% × min(Bonus, max(0, $184,500 − YTD Wages)) | Medicare = 1.45% × Bonus | Additional Medicare = 0.9% × max(0, (YTD + Bonus) − $200k) | State = State Rate × Bonus | Net Bonus = Bonus − Total Withholdings
1. Federal Supplemental Withholding (Flat Method): A flat 22% is withheld on cumulative supplemental wages up to $1,000,000 from the same employer in the calendar year. Any supplemental wages exceeding $1,000,000 are mandatorily withheld at the top individual statutory rate of 37%.
2. Social Security (OASDI): 6.2% is withheld on the portion of the bonus that, combined with year-to-date wages, does not exceed the statutory 2026 OASDI wage cap of $184,500 (IRS Rev. Proc. 2025-32). If prior wages already exceed $184,500, Social Security withholding is $0.
3. Medicare (HI): Standard Medicare tax of 1.45% applies to the entire bonus amount without income limitation.
4. Additional Medicare Tax: An additional 0.9% is withheld on the portion of cumulative compensation (YTD wages + bonus) that surpasses the statutory employer withholding threshold of $200,000. The employer withholds Additional Medicare Tax once an employee's wages pass $200,000 in the calendar year, regardless of filing status. On the tax return, the threshold is $200,000 for single filers and $250,000 for married couples filing jointly, so a joint filer whose combined wages fall between those thresholds may reconcile the difference when filing.
5. State Withholding: Calculated as user-entered state supplemental rate multiplied by gross bonus.
6. Take-Home Pay: Net Bonus = Gross Bonus − Federal Withholding − Social Security − Medicare − Additional Medicare − State Withholding.
IRS Supplemental Wage Withholding Rules (2026)
- Withholding vs. Actual Tax Liability: The single most critical principle of bonus taxation is that withholding is an advance prepayment, not your final tax rate. When you file Form 1040, your bonus is lumped together with your regular salary as ordinary income. If your effective tax rate is lower than the withheld rate, the IRS refunds the difference; if your marginal bracket is higher (e.g. 24%, 32%, or 35%), you pay the difference at tax time.
- The Flat Method vs. The Aggregate Method: When bonuses are paid separately from regular wages, employers use the percentage (flat) method (22% up to $1M, 37% over $1M). If your employer bundles your bonus into a regular paycheck without identifying it separately, IRS rules require the aggregate method: the payroll system calculates tax on the combined amount as if you earned that sum every pay period, artificially pushing withholding into higher brackets. This calculator models the standard flat supplemental method.
- The $1,000,000 Supplemental Threshold: Under Treasury Regulation § 31.3402(g)-1, the $1 million threshold applies to cumulative supplemental compensation paid by the same employer within a calendar year, regardless of how many individual bonus payments are made. The 37% rate on amounts over $1,000,000 is mandatory and cannot be reduced by Form W-4 withholding elections.
- State Supplemental Withholding: State supplemental withholding varies by state. States without income tax (AK, FL, NV, NH, SD, TN, TX, WA, WY) withhold 0%. For other states, enter your withholding rate from your pay stub or state guidance in the state field above; this tool does not quote state rates because they change and differ by state.
- Additional Medicare Tax & Return Reconciliation: The employer withholds Additional Medicare Tax once an employee's wages pass $200,000 in the calendar year, regardless of filing status. On the tax return, the threshold is $200,000 for single filers and $250,000 for married couples filing jointly, so a joint filer whose combined wages fall between those thresholds may reconcile the difference when filing.
- Employer Payroll Taxes Excluded: This calculator computes employee-paid deductions. Employers separately pay matching Social Security (6.2%), matching Medicare (1.45%), Federal Unemployment Tax (FUTA 0.6%), and State Unemployment Insurance (SUI).
Disclaimer: Informational calculation based on IRS Publication 15. Actual net pay may vary depending on local municipal withholdings, 401(k) retirement payroll deductions, pre-tax health insurance premiums, and state-specific disability insurance (SDI) levies.
Verified Worked Example (Benchmark)
Commissioned Verification Benchmarks:
Benchmark A — Standard $10,000 Bonus ($0 YTD Wages, $0 YTD Supp, 0% State):
Federal Withholding (22% × $10,000): $2,200.00.
Social Security (6.2% × $10,000): $620.00 · Medicare (1.45% × $10,000): $145.00 · Additional Medicare: $0.00.
FICA Total: $765.00 · State Withholding: $0.00.
Net Take-Home Bonus: $7,035.00 (Total Withholding: $2,965.00 · Effective Rate: 29.65%).
Federal Withholding (22% × $10,000): $2,200.00.
Social Security (6.2% × $10,000): $620.00 · Medicare (1.45% × $10,000): $145.00 · Additional Medicare: $0.00.
FICA Total: $765.00 · State Withholding: $0.00.
Net Take-Home Bonus: $7,035.00 (Total Withholding: $2,965.00 · Effective Rate: 29.65%).
Benchmark B — Million-Dollar+ $1,500,000 Bonus ($0 YTD Wages, $0 YTD Supp, 0% State):
Federal Withholding: (22% × $1,000,000 = $220,000) + (37% × $500,000 = $185,000) = $405,000.00.
Social Security (capped at $184,500 wage base: 6.2% × $184,500): $11,439.00.
Medicare (1.45% × $1,500,000): $21,750.00 · Additional Medicare (0.9% × $1,300,000 over $200k): $11,700.00.
FICA Total: $44,889.00 · State Withholding: $0.00.
Net Take-Home Bonus: $1,050,111.00 (Total Withholding: $449,889.00 · Effective Rate: 29.99%).
Federal Withholding: (22% × $1,000,000 = $220,000) + (37% × $500,000 = $185,000) = $405,000.00.
Social Security (capped at $184,500 wage base: 6.2% × $184,500): $11,439.00.
Medicare (1.45% × $1,500,000): $21,750.00 · Additional Medicare (0.9% × $1,300,000 over $200k): $11,700.00.
FICA Total: $44,889.00 · State Withholding: $0.00.
Net Take-Home Bonus: $1,050,111.00 (Total Withholding: $449,889.00 · Effective Rate: 29.99%).
Benchmark C — $5,000 Bonus with 5% State Withholding ($0 YTD Wages, $0 YTD Supp):
Federal Withholding (22% × $5,000): $1,100.00.
Social Security (6.2% × $5,000): $310.00 · Medicare (1.45% × $5,000): $72.50 · Additional Medicare: $0.00.
FICA Total: $382.50 · State Withholding (5% × $5,000): $250.00.
Net Take-Home Bonus: $3,267.50 (Total Withholding: $1,732.50 · Effective Rate: 34.65%).
Federal Withholding (22% × $5,000): $1,100.00.
Social Security (6.2% × $5,000): $310.00 · Medicare (1.45% × $5,000): $72.50 · Additional Medicare: $0.00.
FICA Total: $382.50 · State Withholding (5% × $5,000): $250.00.
Net Take-Home Bonus: $3,267.50 (Total Withholding: $1,732.50 · Effective Rate: 34.65%).
Gross-Up Benchmark G-A — Target Net $7,035.00 ($0 YTD Wages, $0 YTD Supp, 0% State):
Required Gross Bonus: $10,000.00.
Federal Supplemental (22%): $2,200.00 · Social Security (6.2%): $620.00 · Medicare (1.45%): $145.00 · Additional Medicare: $0.00 · State: $0.00.
Total Withheld: $2,965.00 (Effective Rate: 29.65%). Forward Check: Gross $10,000.00 → Net $7,035.00.
Required Gross Bonus: $10,000.00.
Federal Supplemental (22%): $2,200.00 · Social Security (6.2%): $620.00 · Medicare (1.45%): $145.00 · Additional Medicare: $0.00 · State: $0.00.
Total Withheld: $2,965.00 (Effective Rate: 29.65%). Forward Check: Gross $10,000.00 → Net $7,035.00.
Gross-Up Benchmark G-B — Target Net $3,267.50 with 5% State Withholding:
Required Gross Bonus: $5,000.00.
Federal Supplemental (22%): $1,100.00 · Social Security (6.2%): $310.00 · Medicare (1.45%): $72.50 · State Withholding (5%): $250.00.
Total Withheld: $1,732.50 (Effective Rate: 34.65%). Forward Check: Gross $5,000.00 → Net $3,267.50.
Required Gross Bonus: $5,000.00.
Federal Supplemental (22%): $1,100.00 · Social Security (6.2%): $310.00 · Medicare (1.45%): $72.50 · State Withholding (5%): $250.00.
Total Withheld: $1,732.50 (Effective Rate: 34.65%). Forward Check: Gross $5,000.00 → Net $3,267.50.
Gross-Up Benchmark G-C — Target Net $150,000.00 (Crosses Additional Medicare Threshold):
Required Gross Bonus: $211,023.13.
Federal Supplemental (22%): $46,425.09 · Social Security (capped at $184,500): $11,439.00 · Medicare (1.45%): $3,059.84 · Additional Medicare (0.9% on $11,023.13 over $200k): $99.21.
Total Withheld: $61,023.13 (Effective Rate: 28.92%). Forward Check: Gross $211,023.13 → Net $150,000.00.
Required Gross Bonus: $211,023.13.
Federal Supplemental (22%): $46,425.09 · Social Security (capped at $184,500): $11,439.00 · Medicare (1.45%): $3,059.84 · Additional Medicare (0.9% on $11,023.13 over $200k): $99.21.
Total Withheld: $61,023.13 (Effective Rate: 28.92%). Forward Check: Gross $211,023.13 → Net $150,000.00.
Gross-Up Benchmark G-D — Target Net $10,000.00 ($180,000 Prior YTD Wages):
Required Gross Bonus: $13,427.82.
Federal Supplemental (22%): $2,954.12 · Social Security (6.2% on remaining $4,500 of cap): $279.00 · Medicare (1.45%): $194.70 · Additional Medicare: $0.00.
Total Withheld: $3,427.82 (Effective Rate: 25.53%). Forward Check: Gross $13,427.82 → Net $10,000.00.
Required Gross Bonus: $13,427.82.
Federal Supplemental (22%): $2,954.12 · Social Security (6.2% on remaining $4,500 of cap): $279.00 · Medicare (1.45%): $194.70 · Additional Medicare: $0.00.
Total Withheld: $3,427.82 (Effective Rate: 25.53%). Forward Check: Gross $13,427.82 → Net $10,000.00.
Gross-Up Benchmark G-E — Target Net $50,000.00 ($990,000 Prior YTD Supplemental):
Required Gross Bonus: $89,072.54.
Federal Supplemental (22% on first $10k + 37% on remaining $79,072.54): $31,456.84 · Social Security (6.2% × $89,072.54): $5,522.50 · Medicare (1.45%): $1,291.55 · Additional Medicare (0.9% on all $89,072.54 over $200k): $801.65.
Total Withheld: $39,072.54 (Effective Rate: 43.87%). Forward Check: Gross $89,072.54 → Net $50,000.00.
Required Gross Bonus: $89,072.54.
Federal Supplemental (22% on first $10k + 37% on remaining $79,072.54): $31,456.84 · Social Security (6.2% × $89,072.54): $5,522.50 · Medicare (1.45%): $1,291.55 · Additional Medicare (0.9% on all $89,072.54 over $200k): $801.65.
Total Withheld: $39,072.54 (Effective Rate: 43.87%). Forward Check: Gross $89,072.54 → Net $50,000.00.
Primary Statutory Sources & Authorities
- IRS Publication 15 (Circular E), Employer's Tax Guide (Section 7: Supplemental Wages) — Statutory rules defining mandatory flat 22% and 37% supplemental wage withholding procedures.
- IRS Revenue Procedure 2025-32 (2026 Annual Inflation Adjustments) — Official 2026 OASDI maximum taxable earnings limit ($184,500) and federal income tax brackets.
- IRS Publication 15-T: Federal Income Tax Withholding Methods — Detailed computational mechanics for percentage and aggregate wage withholding calculations.
Frequently Asked Questions
Primary source guidance on rules, formulas, and regulations.
Under IRS Publication 15 rules, bonuses, commissions, and severance are categorized as supplemental wages. To simplify payroll computations on irregular compensation, the IRS mandates a flat 22% federal withholding rate on supplemental payments up to $1,000,000 per calendar year. This flat rate applies regardless of whether your standard salary withholding bracket is 10%, 12%, or 24%.
If your cumulative supplemental wages from a single employer exceed $1,000,000 in a calendar year, the portion up to $1,000,000 is withheld at the standard 22% rate, and every dollar exceeding $1,000,000 is mandatorily withheld at the top statutory federal rate of 37%. This higher withholding rate is strictly required by federal law and cannot be overridden by Form W-4 elections.
A bonus check often incurs a 30% to 40%+ haircut because standard deductions, FICA (7.65%), and state taxes are subtracted simultaneously without the benefit of personal tax allowances. Furthermore, if an employer uses the aggregate method—combining your bonus and salary into a single regular paycheck—payroll software annualizes that swollen amount and temporarily withholds taxes at high marginal rates (such as 32% or 35%).
Yes. Bonuses are fully subject to FICA payroll taxes: 6.2% for Social Security and 1.45% for Medicare. However, Social Security withholding stops once your total cumulative wages (salary plus bonuses) for the year reach the statutory wage base limit of $184,500 for 2026. If your regular wages have already crossed $184,500, no Social Security tax is withheld from your bonus.
Yes. State tax treatment varies considerably. State supplemental withholding varies by state. Enter the rate from your pay stub or your state's guidance — this tool does not quote state rates, because they change and differ by state. States without personal income taxes (such as Texas, Florida, Nevada, and Washington) withhold 0% at the state level.
When you file your annual tax return (Form 1040), your total salary and bonuses are combined into your adjusted gross income (AGI) and taxed according to standard progressive brackets. If your effective tax rate turns out to be lower than the 22% withheld, you receive the difference back as an IRS refund. If your marginal bracket is 24%, 32%, or higher, you may owe a balance unless prior withholding covered the difference.
For employees in California, a bonus paid separately is subject to the same federal rules as anywhere else: 22% federal supplemental withholding (37% on cumulative supplemental wages over $1 million), 6.2% Social Security up to the 2026 wage base of $184,500, 1.45% Medicare, and 0.9% Additional Medicare on cumulative compensation over $200,000. California also withholds state tax on the bonus — enter your California withholding rate from your pay stub or California guidance in the state field; this tool does not quote state rates. California State Disability Insurance is a separate employee contribution that this tool does not compute.
To gross up a bonus, enter the target net take-home amount you want kept. The calculator works backwards through the same statutory withholding stack (22% flat federal rate or 37% over $1 million, FICA payroll taxes, and your state withholding rate) to calculate the exact gross bonus required. Keep in mind that supplemental withholding is an advance prepayment, not your final tax liability.
A grossed-up bonus is a payment where the employer increases the gross amount so that after statutory tax withholdings are deducted, the employee keeps a specific target net pay. The extra gross amount itself is also subject to taxes, which is why the calculation works backwards mathematically rather than simply adding the initial tax percentage once.
Grossing up a bonus check uses the exact same calculation as any supplemental wage payment. Switch to the gross-up mode above, enter the bonus check's target net amount, your prior year-to-date wages and supplemental earnings (to properly calculate Social Security and Additional Medicare caps), and your state withholding rate.
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