Bonus Tax Rate 2026
The federal supplemental wage withholding rate for 2026 is 22% on the first $1 million and 37% on amounts above. Plus FICA and state taxes. Calculate your exact take-home below.
✓ 22% federal flat rate (up to $1M)
✓ 37% on amounts over $1 million
✓ State rates vary 0%–13.3%
Bonus pay tax calculator · Percentage method
Gross bonus
$5,000.00
Federal withholding (22%)
−$1,100.00
State withholding (6.60%)
−$330.00
Social Security (6.2%)
−$310.00
Medicare (1.45%)
−$72.50
Total withholding
−$1,812.50
36.25% effective
Net bonus (take-home)
$3,187.50
2026 Bonus Tax Rates at a Glance
| Tax | 2026 Rate |
|---|---|
| Federal income (up to $1M) | 22% |
| Federal income (over $1M) | 37% |
| Social Security | 6.2% (up to $176,100 wage base) |
| Medicare | 1.45% (+ 0.9% over $200K) |
| State income tax | 0%–13.3% depending on state |
Federal Supplemental Wage Rules
The IRS classifies bonuses, commissions, overtime pay, and severance as supplemental wages. When supplemental wages are identified separately from regular wages, the employer can withhold at the flat 22% rate instead of using the employee's W-4 settings.
State Bonus Tax Rates (Selected)
| State | Supplemental Rate |
|---|---|
| California | 10.23% |
| New York | 11.7% |
| Texas | 0% (no state income tax) |
| Florida | 0% (no state income tax) |
| Illinois | 4.95% (flat rate) |
Total Effective Bonus Tax Rate
Combining federal (22%) + FICA (7.65%) + state tax, most workers see an effective withholding rate of 30–40% on their bonus. Remember, this is withholding—your actual tax may be lower when you file.