Federal bonus tax rate, 2026 and earlier years
The federal bonus tax rate for 2026 is 22%: employers withhold a flat 22% of a bonus paid separately, or 37% on supplemental wages above $1,000,000 in the year (IRS Publication 15). Add 7.65% for Social Security and Medicare, and a $5,000 bonus keeps about $3,517.50 before state tax. The rate was also 22% in 2024 and 2025, and 25% in 2017.
| Bonus | Federal income tax (22%) | Social Security + Medicare (7.65%) | You keep before state tax | Kept as a share |
|---|---|---|---|---|
| $500 | $110.00 | $38.25 | $351.75 | 70.35% |
| $1,000 | $220.00 | $76.50 | $703.50 | 70.35% |
| $2,500 | $550.00 | $191.25 | $1,758.75 | 70.35% |
| $5,000 | $1,100.00 | $382.50 | $3,517.50 | 70.35% |
| $10,000 | $2,200.00 | $765.00 | $7,035.00 | 70.35% |
| $25,000 | $5,500.00 | $1,912.50 | $17,587.50 | 70.35% |
| $50,000 | $11,000.00 | $3,825.00 | $35,175.00 | 70.35% |
Flat rate or aggregate method
If the bonus is paid separately, or itemized on the same check, the employer can use the flat rate. If it is simply added to a regular check, the employer may instead figure withholding on the combined amount, which often takes more than 22% on that one check. Either way it is withholding, not your final tax. Try your own numbers in the bonus tax calculator, add your state, or work backward from the net you want with the gross-up calculator.
Above $1,000,000
Only the part of supplemental wages above $1,000,000 from one employer in the calendar year is withheld at 37%. A $1,200,000 bonus with no earlier supplemental pay that year has $294,000.00 of federal income tax withheld: 22% of the first $1,000,000 and 37% of the last $200,000.
Where the 22% comes from
The 22% flat rate matches the third federal bracket rate. It was set by the 2018 tax law and, per Publication 15 (2026), remains 22% because P.L. 119-21 made the individual rates permanent. Severance, commissions and back pay are supplemental wages too: see the severance tax calculator. Estimates only, not tax advice.
| Year | Flat rate | Rate above $1,000,000 |
|---|---|---|
| 2017 | 25% | 39.6% |
| 2018 to 2023 | 22% | 37% |
| 2024 | 22% | 37% |
| 2025 | 22% | 37% |
| 2026 | 22% | 37% |
Sources
Keep reading
Questions
What is the federal bonus tax rate for 2026?
22% flat federal income tax withholding on a bonus paid separately from regular pay, and 37% on the part of supplemental wages above $1,000,000 from one employer in the year. Social Security (6.2%) and Medicare (1.45%) are withheld on top.
Was the bonus tax rate different in 2024, 2025 or 2017?
The flat rate was 22% in 2024 and 2025, the same as 2026. In 2017, before the 2018 tax law, it was 25% (39.6% above $1,000,000).
How much of a $5,000 bonus do I keep?
About $3,517.50 before state tax: $1,100.00 federal income tax plus $382.50 Social Security and Medicare.
Is a bonus really taxed at a higher rate?
No. The 22% is withholding, a payroll method. Your actual tax is figured on the return, so an over-withheld bonus can come back as a refund.
What if my employer adds the bonus to my regular paycheck?
Then they may use the aggregate method: withholding is figured on the combined wages as if it were one regular check. That can withhold more than 22% on that check. The bonus tax calculator compares both.