How Are Bonuses Taxed in 2026?
Updated June 12, 2026 · PayCalc Editorial
A bonus feels like free money — until you see the withholding. Here is how bonuses are taxed in 2026 and why the amount withheld is not your final tax.
Bonuses are "supplemental wages"
The IRS treats bonuses as supplemental wages, subject to federal, state and payroll taxes like the rest of your pay. Employers withhold using one of two methods.
The percentage (flat) method
When a bonus is paid separately, employers usually withhold a flat 22% federal rate (and 37% on amounts over $1 million). This is the most common method.
The aggregate method
Here the bonus is added to your most recent regular paycheck and taxed as if that were your normal pay — which can withhold even more if it pushes you into a higher bracket temporarily.
Do not forget FICA
Either way, Social Security (6.2%) and Medicare (1.45%) still apply. Important: withholding is not your final tax — your actual liability depends on your total annual income, so you may get some back at filing. Estimate yours with the federal income tax calculator.