Are bonuses taxed at a higher rate?

No. A bonus is not taxed at a special higher rate. When paid separately, employers withhold federal income tax at a flat 22% supplemental rate, plus Social Security and Medicare. That's withholding, not your final tax — your actual tax depends on your total income, and you settle up when you file, often getting some back.

How much is withheld from a bonus in 2026?

Federal 22% on supplemental wages up to $1,000,000 (37% on any amount over), plus Social Security 6.2% up to the $184,500 wage base, Medicare 1.45% (plus 0.9% on wages over $200,000), and any state supplemental withholding.

Will I get some of my bonus tax back?

You might. If your marginal tax rate is below 22%, the flat withholding took more than your actual tax, and the difference comes back as a refund. If your rate is above 22%, you may owe more at filing.

Myth vs. fact · US 2026

Bonus tax calculator: why is my bonus taxed so high?

Short answer: it isn't. A bonus is not taxed at a higher rate — when it's paid separately, your employer withholds a flat 22% for federal income tax, plus Social Security and Medicare. That's withholding, not your final tax. Enter your bonus and see what's taken out, your take-home, and whether you're likely to get some back.

Your bonus

Bonus amount (USD)

Pay you've already earned this year (optional)

Your state's supplemental rate, if any (optional %)

Your take-home from the bonus

What comes out

How bonus withholding works & data sources

When a bonus is paid separately or separately identified, employers use the IRS percentage method: a flat 22% federal income-tax withholding on supplemental wages up to $1,000,000 per year, and a mandatory 37% on any amount above $1M. The 22% is unchanged for 2026 (the 2025 law made the underlying tax brackets permanent). A bonus is also subject to FICA: Social Security 6.2% up to the 2026 wage base of $184,500 (once your year-to-date pay passes that, Social Security stops), Medicare 1.45% with no cap, and an Additional Medicare 0.9% on wages above $200,000 for the year. States may add their own supplemental withholding, which varies. Crucially, all of this is withholding, not your final tax — your real liability depends on your total annual income and is settled when you file. If your marginal rate is under 22%, some comes back as a refund.

✅ Rules verified as of July 19, 2026 — IRS Pub. 15 (Circular E) 2026; SSA 2026 wage base; IRS Topics 751 & 560 · Withholding estimate, not tax advice.

Sources: IRS — Publication 15 (supplemental wages, 22%/37%) · SSA — 2026 wage base ($184,500) · IRS — Additional Medicare Tax (0.9%)

Frequently asked questions

Is my bonus taxed at a higher rate?

No. It's withheld at a flat 22% (federal) when paid separately — that's not a higher tax, just a fixed withholding rate. Your actual tax is based on your total income and settled at filing.

Why did so much come out of my bonus?

22% federal plus Social Security (6.2%), Medicare (1.45%) and any state rate adds up to roughly 30–40% withheld — even though your final tax on it may be less. The gap comes back as a refund if your bracket is lower.

What if my employer lumps the bonus into my paycheck?

Then they may use the "aggregate method" — withholding based on your W-4 as if the combined amount were your normal pay, which can withhold more or less than the flat 22%. This tool estimates the flat-rate (separately-paid) method.

Will I get money back?

If your marginal rate is below 22%, the flat withholding took more than your real tax on the bonus, so you'd get the difference back. If it's above 22%, you may owe a bit more at filing.