A bonus check that is much smaller than the bonus is a familiar surprise. The reason is almost always withholding, not a special bonus tax. Bonuses are taxed exactly like salary; they're just withheld differently, and the difference evens out when you file.
The 2026 bonus withholding rates
| Withholding |
Rate |
| Federal income tax on bonuses up to $1 million a year |
22% flat |
| Federal income tax on bonus amounts above $1 million |
37% |
| Social Security |
6.2%, until total wages reach $184,500 |
| Medicare |
1.45%, plus 0.9% on wages above $200,000 |
| State income tax |
Varies; many states have a flat bonus rate |
The 22% and 37% rates come from IRS Publication 15. The 2025 tax law made them permanent along with the individual tax brackets.
Withholding is not the same as tax
The 22% is a prepayment. Your actual tax on the bonus depends on your bracket: the bonus is added to your income for the year and taxed at whatever rate that income reaches. That means:
- In the 10% or 12% bracket, 22% withholds too much. You get the difference back in your refund.
- In the 22% bracket, withholding roughly matches the tax.
- In the 24% bracket or above, 22% withholds too little. You may owe the difference when you file.
A $10,000 bonus at different salaries
For a single filer taking the standard deduction, with no state tax:
| Salary |
Federal withheld |
Federal tax the bonus really adds |
Difference at tax time |
Take-home on payday |
| $30,000 |
$2,200 |
$1,200 |
About $1,000 back |
$7,035 |
| $50,000 |
$2,200 |
$1,200 |
About $1,000 back |
$7,035 |
| $70,000 |
$2,200 |
$2,200 |
About even |
$7,035 |
| $120,000 |
$2,200 |
$2,364 |
About $164 owed |
$7,035 |
| $220,000 |
$2,200 |
$3,200 |
About $1,000 owed |
$7,565 |
Take-home on payday is the same for most people because withholding is flat. At $220,000 it is higher only because the salary already passed the Social Security wage base, so no Social Security comes out of the bonus.
The $120,000 row is a common surprise: the bonus straddles the 22% and 24% brackets, so part of it is taxed at 24%.
Why some bonuses lose more than 22%
Employers can use one of two methods:
Flat (percentage) method. The bonus is paid separately or listed separately, and federal tax is withheld at 22%. This is the most common method.
Aggregate method. The bonus is added to a regular paycheck and withholding is figured as if you earned that combined amount every pay period. A $10,000 bonus on top of a $2,700 biweekly paycheck is treated like a $330,000 salary for that one check, so withholding can be much higher than 22%. You don't pay more tax in the end; the extra comes back when you file.
If your bonus withholding looks very high, check your pay stub to see whether the bonus was combined with regular pay.
Ways to keep more of a bonus
- Contribute it to your 401(k). If your plan allows contributions from bonuses, that portion skips federal income tax now (Social Security and Medicare still apply). Annual contribution limits apply.
- Use an HSA if you have one. Contributions through payroll avoid income tax and, through a cafeteria plan, payroll taxes too.
- Adjust your W-4 if you'll owe. In the 24% bracket or higher, a large bonus can leave you short at tax time. Adding extra withholding for the rest of the year prevents a surprise bill.
- Don't refuse a raise or bonus over brackets. Higher brackets apply only to the income inside them; a bonus never makes your total take-home lower.
Work out your own bonus
Enter your bonus, salary and state rate in the bonus tax calculator. It shows your payday take-home and whether the 22% withheld is more or less than the tax the bonus really adds.