Federal rates
- 22% flat withholding on supplemental wages (percentage method) — the default for most bonuses.
- 37% on the portion of supplemental wages exceeding $1 million in the calendar year.
- These are withholding rates only; the bonus is taxed as ordinary income on your return.
FICA
- Social Security 6.2% up to the 2026 wage base of $184,500 (employer matches).
- Medicare 1.45% uncapped; employers begin withholding the extra 0.9% above $200,000 of YTD wages.
State supplemental rates (published flat rates)
No wage income tax: AK, FL, NV, NH, SD, TN, TX, WA, WY. Published supplemental/flat rates used by payroll: California 10.23%, New York 9.65%, Arizona 2.5%, Colorado 4.4%, Georgia 5.39%, Illinois 4.95%, Indiana 3.0%, Kentucky 3.5%, Massachusetts 5.0%, Michigan 4.25%, North Carolina 4.25%, Pennsylvania 3.07%, Utah 4.55%, Idaho 5.3%. Progressive-tax states approximate via regular withholding or an editable rate in our calculator.
Worked examples for 2026
- $5,000 bonus, Texas: $1,100 federal + $382.50 FICA + $0 state = $3,517.50 net.
- $5,000 bonus, Illinois: adds $247.50 state = $3,270 net.
- $5,000 bonus, California: adds $511.50 state = $3,006 net.
- Excess withholding over your true liability is recovered when you file.
Frequently Asked Questions
Did the bonus tax rate change for 2026?
No — the federal 22%/37% supplemental structure is unchanged, and the 2026 SS wage base rose to $184,500. The 2026 OBBBA deductions cover overtime and tips, not bonuses.
What's the highest total bonus withholding in the US?
California: 22% + 7.65% + 10.23% ≈ 39.88% withheld — though your actual liability is likely lower, and the excess returns at filing.