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Take-Home Pay & Tax Telemetry
IRS Supplemental Wages • 2025/2026 Statutory Rules

Bonus Tax Calculator: How Much Will You Actually Keep?

Expecting a year-end bonus, holiday incentive, or retention payout? Calculate your exact net take-home bonus after the IRS 22% supplemental withholding rate, Social Security, Medicare, and your specific state's supplemental bonus tax.

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2025/2026 IRS Supplemental Wage Rule (22% Flat Rate)

Bonus Tax & Net Take-Home Calculator

Calculate exactly how much money lands in your bank account after IRS federal supplemental withholding, FICA, and state bonus taxes.

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Used to check if you have crossed the $176,100 Social Security cap.

💡 Why is a Bonus Taxed So High?

The IRS classifies bonuses as supplemental wages. Most employers withhold a flat statutory 22% federal rate up-front. When combined with 7.65% FICA and state income tax, around 30% to 45% is withheld initially. Any excess withheld is refunded when you file Form 1040.

Estimated Take-Home Net Bonus

$7,035

You keep 70.3% of your gross $10,000 bonus.

29.6% Total Withholding
Withheld Deductions: $2,965Net in Pocket: $7,035

Itemized Bonus Deductions

Federal Supplemental Withholding (22% Statutory Rate)-$2,200
Social Security (6.2% up to $176,100 cap)-$620
Medicare (1.45% base + 0.9% high-earner surtax)-$145
Texas State Bonus Withholding (0.00%)$0 (0% State Tax)
Actual Net Bonus Deposited$7,035
Method: IRS Revenue Procedure 2024-40
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How Supplemental Bonus Withholding Works in 2026

The IRS classifies any wage payment made outside your standard regular paycheck as a supplemental wage. This includes year-end performance bonuses, signing bonuses, severance payouts, and accumulated paid time off (PTO) cash-outs.

The Two Methods Employers Use:

  • Percentage Method (Most Common): Employers withhold a flat 22% federal tax on all bonus amounts up to $1 million (and 37% on amounts exceeding $1 million).
  • Aggregate Method: Your employer combines your regular paycheck with your bonus, calculates taxes as if that single check represents your normal annual pay bracket, and withholds accordingly. This often pushes you into a temporary higher tax bracket on that specific pay stub.

State Bonus Taxes:

In zero-tax states like Texas and Florida, $0 is deducted for state tax. However, states like California enforce a mandatory flat 10.23% supplemental withholding, and New York enforces up to 11.7% on bonuses.

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Official Tax Authority & Verification Standards Verified for 2025/2026/2027 Filing Seasons

Calculations on this page are modeled using official federal and state statutes, including:

  • • IRS Rev. Proc. 2024-40: 2025/2026 Federal tax brackets & standard deductions
  • • SSA OASDI Wage Base: Social Security tax capped at $176,100
  • • IRC § 3402 & § 1401: Federal withholding tables & SECA self-employment tax
  • • State Revenue Departments: Statutory individual income tax tables
Reviewed & fact-checked by the USTaxPulse Quantitative Tax Modeling Team. Read full calculation methodology →