Bonus Tax Rate 2026: Why It Is 22% and What You Keep

Many people open a bonus pay stub and feel cheated: a $5,000 bonus turns into a check of about $3,500. That does not mean bonuses are taxed at a higher rate than your salary. It means your employer withholds a flat amount, and the difference between withholding and the tax you really owe is settled when you file. This guide explains the 2026 bonus tax rate, why 22% shows up on pay stubs, how much of a bonus you keep at different incomes, and the choices that change the number. To try your own figures, use the bonus tax calculator.

What is the federal bonus tax rate in 2026?

The IRS treats bonuses as supplemental wages. When an employer pays a bonus separately from regular pay, the employer may use the flat-rate method and withhold 22% for federal income tax. If a worker receives more than $1 million in supplemental wages in a year, the employer must withhold 37% on the amount above $1 million. These rates come from IRS Publication 15.

The second method is the aggregate method. The employer adds the bonus to your regular pay for that pay period and withholds as if the total were one regular paycheck. That can withhold much more than 22% for that one check, because the payroll system acts as though you earn the larger amount every pay period. Neither method is your final tax. Both are only estimates of it.

Why a bonus feels taxed at a higher rate

1. The flat 22% can be higher than your real rate. If your top federal bracket is 12%, 22% is withheld on a bonus that will really be taxed at 12%.
2. The aggregate method inflates one paycheck. A big bonus added to a regular check can make the withholding table assume a high yearly income.
3. Payroll taxes apply right away. Social Security (6.2%) and Medicare (1.45%) take 7.65% of every dollar, with Social Security stopping at the $184,500 wage base for 2026.
4. State tax adds more. Most states that tax wages also withhold on a bonus, often at a flat supplemental rate.

How much of a bonus do you keep? Bonus tax by bonus size

The table shows a single filer earning $75,000 a year in a state with no income tax. The "tax owed" column is the extra federal income tax the bonus really adds to the year, worked out with the 2026 brackets and the standard deduction. The withheld column is what a flat 22% takes.

For a state with income tax, subtract your state's tax too. In Ohio, the same $5,000 bonus leaves about $3,380 after state tax. Use the bonus tax calculator to see your state.

Bonus tax by salary: refund or bill?

The same $5,000 bonus is withheld at $1,100 for everyone, but the real federal tax depends on the bracket the bonus lands in. The table assumes a single filer and a state with no income tax.

If your bonus sits in the 22% bracket, withholding matches the tax almost exactly. Below it you get a refund at filing time, and above it you may owe a little more. That is the main reason a larger refund can follow a big bonus year.

Ways to keep more of a bonus

• Put part of it in a 401(k). A traditional 401(k) contribution comes out before federal income tax. Ask your employer whether you can send part of the bonus straight to the plan. The yearly limit is on the IRS page for retirement plan contribution limits, and the traditional vs Roth guide explains the choice.
• Change your W-4. If a bonus withholds too much or too little, file a new W-4 so regular paychecks balance the year.
• Use a health savings account. If you have an eligible plan, HSA contributions made through payroll also avoid income tax and FICA.
• Ask about the timing. A bonus paid in January counts for next year's income, which can matter if this year's income is unusually high.

Is a bonus taxed differently from a raise?

No. A raise and a bonus are both wages, taxed at the same federal rates. The difference is only withholding. A raise changes every paycheck gradually and withholding follows your W-4. A bonus arrives all at once and uses the supplemental rate. To see what a raise adds to take-home pay, read how to read your paycheck or use the pay raise calculator.

Frequently asked questions

What is the federal tax on a bonus in 2026?

Employers commonly withhold 22% for federal income tax on a separate bonus, plus 7.65% for Social Security and Medicare. The tax you really owe depends on your total income and tax bracket.

Is a $10,000 bonus taxed at 22%?

The withholding on a separate $10,000 bonus is $2,200 for federal income tax, plus $765 for Social Security and Medicare, before state tax. The real federal tax can be higher or lower once you file.

Can I avoid the 22% withholding?

Your employer chooses between the flat and the aggregate method. You cannot opt out, but you can adjust your W-4 for later paychecks, and you will get any over-withholding back as a refund.

Is the bonus tax the same in every state?

No. Federal withholding is the same everywhere. State withholding varies: nine states have no wage income tax, and the others use their own rates.

Why did my bonus check shrink so much?

Because 22% federal withholding, 7.65% Social Security and Medicare, and state tax can together take 30% to 40% of the check. Most of that is withholding, not final tax.

The bottom line

There is no special 2026 tax rate for bonuses. A bonus is taxed like the rest of your pay, but it is withheld at a flat 22% federal rate plus 7.65% for payroll taxes, which is why the check looks small. Your real tax is settled when you file, and for many people part of the withholding comes back as a refund. Run your own numbers in the bonus tax calculator before you plan how to spend a bonus.

Sources

• Publication 15, Employer’s Tax Guide (supplemental wages), Internal Revenue Service
• Revenue Procedure 2025-32 (2026 inflation adjustments), Internal Revenue Service
• Contribution and benefit base, Social Security Administration
• Topic no. 751, Social Security and Medicare withholding rates, Internal Revenue Service

Figures are for a single filer with the 2026 standard deduction and no other deductions, in a state with no income tax unless stated. Estimates for planning, not tax advice. Last reviewed November 12, 2026.