Free calculator · Tax year 2026
Why was your bonus taxed so much?
Your bonus is not taxed at 22% — that is a WITHHOLDING rate your employer applies up front, not your tax rate. A bonus is ordinary income taxed at your marginal brackets, so what you actually owe on it depends on the rest of your income. If your real rate is higher than the flat rate withheld, the shortfall shows up at filing time.
Compare that to what was withheld. Employers commonly withhold a flat 22% on bonuses (see below). If your true rate above is higher, the shortfall lands on your return; if it is lower, the excess comes back. This calculator computes your actual tax — it does not know what your employer withheld, so it cannot tell you the difference in dollars.
Estimate for tax year 2026, federal income tax only, using the same calculation engine as the Spaife app. It excludes Social Security and Medicare withholding, and state tax.
The flat withholding rates
These are the rates an employer may withhold at on supplemental wages. They decide what is prepaid, not what is owed — which is exactly why the number on your payslip rarely matches your real tax.
- Supplemental wages up to $1,000,000
- 22% flat withholding
- Supplemental wages above $1,000,000
- 37% flat withholding on the excess
Source: IRS Publication 15 (Circular E), supplemental wages. Reference only — not used in the calculation above.
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Common questions
- Why was my bonus taxed at 22% (or 40%)?
- It was not taxed at that rate — it was WITHHELD at it. Employers may withhold on supplemental wages at a flat 22% (37% above $1 million) regardless of your bracket. Withholding is a prepayment; your actual tax is settled on your return.
- Will I get some of it back?
- If the flat rate withheld more than your true rate on the bonus, the excess comes back as part of your refund. If your true rate is higher, you owe the difference. This calculator shows your true rate; compare it to what was actually withheld on your payslip.
- Does a bonus push me into a higher tax bracket?
- It can push part of your income into a higher bracket, but only the amount above each threshold is taxed at the higher rate. A raise or bonus never reduces your take-home pay.
- Is a bonus taxed differently from salary?
- No. For income tax it is ordinary income like any wages. Only the WITHHOLDING method differs, which is what creates the confusion.
Sources
- 26 U.S.C. §61 — wages and bonuses are gross income.
- 26 U.S.C. §1 — the marginal rate schedules your bonus is actually taxed under.
- IRS Publication 15 (Circular E) — flat withholding on supplemental wages.
Related: SALT cap · Child Tax Credit