Tax year 2026
Bonus calculator
See what a bonus adds to your take-home pay for the year, what the bonus check itself is likely to look like, and how much may come back at tax time.
You keep about $3,226 of a $5,000 bonus, or 65% of it.
| Tax on the bonus | What it adds for the year | Typical withholding |
|---|---|---|
| Federal income tax | $1,100.00 | $1,100.00 |
| Social Security and Medicare | $382.50 | $382.50 |
| State tax | $291.60 | $291.60 |
| You keep | $3,225.90 | $3,225.90 |
Employers may withhold federal tax on bonuses at a flat 22% (37% above $1 million). That is a withholding shortcut, not a special bonus tax: on your return a bonus is taxed like any other pay. State withholding on bonuses varies; the state figures here are what the bonus adds to the year's tax.
Estimate for tax year 2026. Your real paycheck depends on your W-4, your benefits and your employer's payroll system. This is education, not tax, payroll or financial advice.
Why bonus checks look so small
A bonus is ordinary income. On your tax return it is added to your salary and taxed at whatever rates the total reaches. But employers are allowed to withhold federal tax on bonuses at a flat 22%, whatever your real rate is, and most do.
If your salary puts you in the 12% bracket, the flat 22% takes too much and the difference comes back as a refund. If you are in the 24% bracket or higher, it takes too little and you may owe a little more. Social Security (6.2%), Medicare (1.45%) and state tax come out of a bonus as well.
This calculator shows both figures: what the bonus really adds to your year after tax, and what a typical bonus check pays out.
Questions
Is a bonus taxed at a higher rate than salary?
No. It is taxed like any other pay on your tax return. Only the withholding is different: a flat 22% for federal tax, which may be more or less than your real rate.
How can I keep more of my bonus?
Putting part of it into a traditional 401(k) or an HSA, if your employer allows it, lowers the income tax on it. Social Security and Medicare still apply to 401(k) contributions.
What about bonuses over $1 million?
Federal withholding is 37% on the part of the year's bonuses above $1 million.