2026 federal planning tool

Bonus and Supplemental Wage Tax Calculator

Compare federal flat supplemental withholding with an aggregate-method estimate and payroll taxes.

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The flat method uses 22% through $1 million of annual supplemental wages and 37% on the excess. Payroll taxes are shown separately.

Official rules and scope

Tax year 2026. Rules reviewed September 10, 2026. Results depend entirely on entered assumptions and omit state/local taxes and specialized return rules unless explicitly shown.

IRS Publication 15-T · IRS Publication 505 · IRS Publication 15 · IRS Revenue Procedure 2025-32

How bonus withholding works

When separately identified supplemental wages do not exceed $1 million, an employer that meets the regular-wage withholding condition may use a flat 22% federal rate or the aggregate method. Supplemental wages above $1 million are withheld at 37%.

Bonuses are also generally subject to Social Security and Medicare withholding. Additional Medicare withholding starts when an employer pays an employee more than $200,000 during the year.

Withholding is a prepayment and may differ from final tax on the return.

Official source