Year-End Bonus Tax Calculator
Calculate taxes on year-end bonuses using the IRS flat rate method for 2026.
This tool is for educational and informational purposes only and does not constitute accounting, tax, or legal advice. Consult a qualified professional for personalized advice. Tax year: 2026.
Enter Your Bonus Details
Bonus Tax Results
$0
Net Bonus After Taxes
Gross Bonus$0
Federal Income Tax (22%)$0
Social Security (6.2%)$0
Medicare (1.45%)$0
State Income Tax$0
Total Taxes$0
Net Bonus$0
Effective Tax Rate0%
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Bonus Tax Breakdown
Example Cases
Example 1: $10,000 Bonus, $80,000 Salary, CA
Bonus: $10,000, Salary: $80,000, State: California
Result: Federal Tax = $2,200, State Tax = $930, SS = $620, Medicare = $145, Net = $6,105
Result: Federal Tax = $2,200, State Tax = $930, SS = $620, Medicare = $145, Net = $6,105
Example 2: $5,000 Bonus, $50,000 Salary, TX
Bonus: $5,000, Salary: $50,000, State: Texas (no income tax)
Result: Federal Tax = $1,100, State Tax = $0, SS = $310, Medicare = $72.50, Net = $3,517.50
Result: Federal Tax = $1,100, State Tax = $0, SS = $310, Medicare = $72.50, Net = $3,517.50
Calculation Methodology
The IRS allows employers to use a flat 22% withholding rate on bonuses up to $1,000,000. For bonuses over $1,000,000, the withholding rate is 37% on the amount over $1,000,000.
Social Security tax (6.2%) and Medicare tax (1.45%) also apply to bonus payments.
Frequently Asked Questions
The IRS flat rate for bonus withholding is 22% for bonuses up to $1,000,000. For bonuses over $1,000,000, the amount over $1,000,000 is taxed at 37%.
Yes, Social Security tax (6.2%) is withheld from bonuses, but only on amounts up to the annual wage base ($168,600 for 2026).
If the flat 22% withholding results in more tax than your actual tax liability, you will receive a refund when you file your annual tax return.
Yes, employers can also use the aggregate method, which combines the bonus with regular wages and calculates withholding based on the total amount.