Bonus withholding estimator Estimate 2026 US federal bonus withholding using the flat 22% method or a simplified
aggregate-payroll method, plus employee Social Security, Medicare, Additional Medicare,
and optional state or local withholding.
Method
Display currency
Switch displayed amounts without changing the US withholding assumptions.
Result
$7,035.00
Estimated net bonus after federal withholding and employee payroll taxes on a
$10,000.00 bonus.
Federal income withholding
$2,200.00
Payroll taxes
$765.00
State/local estimate
$0.00
Total withholding
$2,965.00
Effective withholding rate
29.65%
Compared with Aggregate
-$611.70
Line item
Amount
Federal income withholding (Flat percentage)
$2,200.00
Social Security
$620.00
Medicare
$145.00
Additional Medicare
$0.00
State/local withholding estimate (0%)
$0.00
Federal method
Federal withholding
Estimated net bonus
Flat percentage
$2,200.00
$7,035.00
Aggregate
$2,811.70
$6,423.30
Method note
The flat percentage method uses 22% on supplemental wages up to the first $1 million paid during the year and 37% on any excess. This is a federal estimate only and does not include state or local withholding, pre-tax deductions, or custom W-4 entries.
Bonus tax calculator guide: percentage method, aggregate method, and net bonus pay
A bonus tax calculator estimates how much of a one-time bonus may be withheld for US federal taxes before the net payment reaches you. If you were looking for a bonus withholding calculator or bonus paycheck calculator, this version models the IRS supplemental-wage percentage method, a simplified aggregate method, and employee Social Security and Medicare withholding so you can compare the gross bonus with the approximate net amount.
How bonus withholding works
Employers can withhold federal income tax on supplemental wages such as bonuses using more than one approach. The simplest common approach is the percentage method, which applies a flat withholding rate to eligible supplemental wages up to the threshold and a higher rate above that threshold. Another approach is the aggregate method, which combines regular wages and the bonus for payroll withholding purposes.
That distinction matters because a bonus is often withheld differently from regular salary even when the year-end tax result is reconciled on the tax return later. A withholding estimate is therefore most useful when you want to preview the pay-period impact rather than predict an exact final tax liability.
The calculator now shows a side-by-side federal method comparison so you can see whether the flat percentage method or aggregate method produces the higher federal withholding estimate for the same bonus, payroll frequency, and regular wages. It also includes an optional state or local withholding percentage field so the net bonus estimate can reflect a known payroll rate without pretending to maintain every state and local tax table.
Net bonus = Bonus amount - Federal withholding - Employee payroll taxes
This calculator shows the estimated cash left after federal income-tax withholding plus employee Social Security and Medicare withholding.
Percentage method withholding = Bonus x flat rate
The IRS percentage method generally uses a flat supplemental-wage rate up to the annual threshold, with a higher rate on the excess.
Percentage method versus aggregate method
The percentage method is usually easier to understand because it applies a flat supplemental-wage withholding rate directly to the bonus amount. In this calculator, that is 22% on eligible supplemental wages up to the first 1,000,000 paid during the year and 37% on supplemental wages above that annual threshold.
The aggregate method works differently. It annualizes the regular wages and the combined wages for the chosen payroll frequency, estimates federal withholding for both, and uses the difference as the bonus withholding estimate. That method can produce a lower or higher pay-period withholding number depending on income level and payroll frequency.
Worked example: a 10,000 bonus under the percentage method
Suppose a worker receives a 10,000 bonus, has not crossed the annual supplemental-wage threshold, and is still below the Social Security wage base. Under the percentage method, federal income-tax withholding is 2,200. Employee Social Security withholding is 620 and Medicare withholding is 145, for total withholding of 2,965.
That leaves an estimated net bonus of 7,035. The exact year-end federal tax result can still differ because withholding is not the same thing as final tax liability, but the example shows why the payment received can be meaningfully lower than the headline bonus amount.
What this estimate excludes
This calculator is intentionally limited to a truthful federal planning scope. It does not include state withholding, local withholding, full W-4 customization, stock-compensation edge cases, pretax benefit deductions, or employer-specific payroll settings.
Use it to estimate the paycheck effect of a cash bonus, not to reconcile an official paystub line by line. If the bonus is large, unusual, or part of a more complex compensation package, compare the estimate with current IRS payroll guidance and your employer payroll team.
If your payroll system withholds a separate state or local supplemental-wage rate, enter that percentage as an estimate. If your state uses regular wage withholding, special bonus rules, local payroll taxes, or employer-specific settings, the state/local field is only a rough placeholder and should be checked against the actual paystub or payroll department.
This page works well as a bonus withholding calculator when you want a pay-period estimate that includes both federal income-tax withholding and employee payroll taxes. It is also a practical bonus paycheck calculator if you need to compare the gross bonus with the amount that will actually reach your bank account.
For a quick mental check, remember that the calculator follows the IRS supplemental-wage percentage method or aggregate method for federal income-tax withholding, then adds Social Security, Medicare, and Additional Medicare withholding on top of that estimate.
The method comparison table is especially useful when a bonus is paid with a regular check. The selected method controls the headline net bonus, while the comparison row shows what the other federal method would have produced before any state/local placeholder rate is added.
Frequently asked questions
Why is my bonus withheld differently from my normal salary?
Bonuses are supplemental wages, and employers can apply supplemental-wage withholding rules instead of withholding them the same way as a regular paycheck. That is why the pay-period withholding on a bonus can feel unusually high or low.
Is bonus withholding the same as my final tax bill?
No. Withholding is a payroll estimate collected during the year. Your final federal tax liability is reconciled on your tax return and can end up higher or lower than the amount withheld from the bonus payment.
Does this include Social Security and Medicare on the bonus?
Yes. This calculator can include employee Social Security and Medicare withholding on the bonus, which helps show a more realistic net payment estimate.
Does this estimate state bonus withholding?
No. This version is limited to US federal withholding plus employee payroll taxes. State and local withholding are outside the current scope.
Can I use this as a bonus withholding calculator?
Yes. It estimates the bonus withholding that affects your take-home pay by combining federal income-tax withholding with the employee Social Security, Medicare, and Additional Medicare taxes that apply to the bonus.
Why does the calculator compare the percentage method and aggregate method?
The two IRS-permitted approaches can produce different pay-period withholding estimates. The flat percentage method applies the supplemental-wage rate directly to the bonus, while the aggregate method combines the bonus with regular wages for the payroll period and withholds the difference. Showing both methods helps you understand whether the chosen payroll treatment is driving a higher or lower net bonus estimate.
How should I use the state or local withholding field?
Use the state/local field only when you know a payroll withholding percentage that should be applied to the bonus. It is a manual placeholder, not a state tax engine. Some states have supplemental wage rates, some use regular wage withholding, and some local taxes depend on where you live or work.
What if the 22% flat rate is lower than my actual tax bracket?
The 22% supplemental-wage rate is a withholding rule, not a promise that the bonus is finally taxed at 22%. If your actual marginal tax rate is higher, you may need extra withholding or estimated payments to avoid under-withholding when you file. The IRS Tax Withholding Estimator can help with full-year planning.
