Bonus Tax Calculator 2025-26 (Flat 22% Rule)

Used to determine if you've exceeded Social Security wage cap
Percentage method is most common for bonuses under $1 million

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    How Bonuses Are Taxed: The Flat Rate Rule

    Congratulations on your bonus! But before you spend it, be aware that the IRS treats "supplemental wages" differently than regular paychecks. You might notice a significantly higher withholding rate on your bonus check.

    The 22% Withholding Rule

    For most bonuses under million, employers typically use the percentage method, withholding a flat 22% for federal tax. Note that this is just withholding, not the final tax cost.

    If your actual tax bracket is lower (e.g., 12%), you will get the difference back as a refund. If your bracket is higher (e.g., 32%), you may owe more tax on that bonus when you file in April.