How to use the bonus tax calculator
- Enter your bonus and your yearly salary without the bonus.
- Choose how your employer pays it: as a separate check (22% flat withholding) or added to a regular paycheck (aggregate method). Ask payroll if you're not sure; separate bonus checks almost always use 22%.
- Pick your filing status, pay frequency, your state's tax rate on bonuses, and any 401(k) percentage taken from the bonus.
How bonuses are taxed in 2026
| Item | Rate |
|---|---|
| Federal withholding (flat method) | 22% (37% above $1 million) |
| Social Security | 6.2% up to the $184,500 wage base |
| Medicare | 1.45% (+0.9% on wages above $200,000) |
| State | Your state's bonus or income tax rate |
Withholding is only a prepayment. When you file, the bonus is added to your other income and taxed at your normal brackets.
Bonus take-home examples
Single filer, 4% state tax, flat 22% method:
| Bonus | Salary | Take-home | Federal tax really owed |
|---|---|---|---|
| $1,000 | $50,000 | $663.50 | $120 (refund of about $100) |
| $5,000 | $70,000 | $3,317.50 | $1,100 (about even) |
| $10,000 | $70,000 | $6,635.00 | $2,200 (about even) |
| $20,000 | $120,000 | $13,270.00 | $4,764 (owe about $364) |
Someone in the 12% bracket gets money back; someone in the 24% bracket or higher owes a little at tax time. The calculator shows which one applies to you.
Flat 22% vs the aggregate method
With the aggregate method, payroll adds the bonus to your regular paycheck and withholds as if you earned that much every pay period. For a $5,000 bonus on a $70,000 salary paid every two weeks, that's about $1,160 of federal withholding instead of $1,100. Paid monthly, about $1,114. Either way, the extra comes back on your tax return; it's not extra tax.
Ways to keep more of your bonus
- Defer it to your 401(k). Many plans let you set a separate percentage for bonuses. Up to the 2026 limit of $24,500, every dollar deferred skips federal income tax now. See the growth with the 401(k) calculator.
- Fund an HSA or a Roth IRA. An HSA lowers tax; a Roth grows tax-free. Our guide to Roth IRA vs 401(k) explains which first.
- Adjust your W-4 if a big bonus will push withholding far from what you owe.
Spend your bonus on purpose
Decide before it arrives. A common split is half to goals (emergency fund, debt, retirement) and half to enjoy. If you don't have three months of expenses saved, start there; see how much emergency fund you need. For a raise rather than a one-time bonus, the pay raise calculator shows the change per paycheck, and the take-home pay calculator shows a normal paycheck.
Give every bonus dollar a job
Vault keeps your income, savings goals, debt and bills on one dashboard, so a bonus goes where it matters. Flow plans each paycheck and shows what's safe to spend. Both have a free demo with sample data.
2026 federal estimate; not tax advice.
Frequently asked questions
How much tax is taken out of a bonus?
Are bonuses taxed more than regular pay?
What is the aggregate method?
How can I pay less tax on my bonus?
Will I get a refund on my bonus tax?
Do states tax bonuses differently?
Written by
Finance Specialist & Editor, VaultlyApps
Emma Whitfield writes and edits the VaultlyApps money guides and free calculators. Her focus is US household finance — budgeting on a real paycheck, paying down credit card and student debt, emergency funds and savings goals, renting — and the money side of freelancing and small-business income, from pricing and profit margins to self-employment tax. Every guide is researched against primary sources such as IRS publications and the CFPB, every number is checked in our tested calculators, and tax content is reviewed each year when new IRS figures come out. Emma is not a licensed financial adviser or tax preparer; her work is general education, not personal advice.
Researched against primary US sources, checked against independent calculators and reviewed by a finance expert on our team. Written for US readers — general education, not financial, tax or legal advice. Editorial policy · Disclaimer
