US bonus tax: $1,000 → $220 withheld (22%)
A bonus is supplemental wages. On the default, $1,000 withholds $220 federal (22% Pub 15 §7) plus FICA $76.50; you keep $703.50. Employers do not have to run it through your Form W-4 the same way as your regular paycheck. IRS Publication 15 section 7 gives them two methods when the bonus is identified separately:
- Optional flat 22% (no other percentage allowed): the method most payroll systems pick
- Aggregate method: add the bonus to regular wages for the period, figure tax on the total with the percentage method, then subtract the tax on the regular wages
Above $1 million of supplemental wages in the calendar year, a mandatory 37% applies to the excess, without regard to Form W-4.
Default hero: $1,000 bonus → federal withholding $220 (22%) + FICA $76.50 → net $703.50.
Read the evergreen explainer →
net = bonus − federal withholding − FICA
flat method: federal = 22% × amount under $1M YTD + 37% × excess aggregate: federal = tax(regular + bonus) − tax(regular) FICA = 6.2% Social Security (to $184,500) + 1.45% Medicare (no cap)
Official example (Pub 15 Example 3)
Sharon receives a $1,000 bonus identified separately from her regular wages. The employer elects the flat rate: 22% × $1,000 = $220 federal withholding. FICA still applies on top: $62 Social Security + $14.50 Medicare = $76.50. Net bonus: $703.50.
| Item | Amount |
|---|---|
| Bonus (Pub 15 Example 3) | $1,000.00 |
| Federal 22% (flat method) | $220.00 |
| Social Security 6.2% | $62.00 |
| Medicare 1.45% | $14.50 |
| FICA total | $76.50 |
| Total tax | $296.50 |
| Net bonus | $703.50 |
Bonus scenarios (flat 22% method)
| Bonus | Federal 22% | FICA | Net |
|---|---|---|---|
| $1,000 | $220.00 | $76.50 | $703.50 |
| $5,000 | $1,100.00 | $382.50 | $3,517.50 |
| $10,000 | $2,200.00 | $765.00 | $7,035.00 |
The $1 million cliff
If you have already been paid $995,000 of supplemental wages this year and this bonus is $25,000, only $5,000 stays at 22% ($1,100). The remaining $20,000 is withheld at 37% ($7,400). Combined federal withholding: $8,500.
| Slice of the $25,000 bonus | Rate | Federal withholding |
|---|---|---|
| $5,000 (room left under $1M YTD) | 22% | $1,100.00 |
| $20,000 (excess over $1M) | 37% | $7,400.00 |
| Total federal on the bonus | — | $8,500.00 |
| FICA on the $25,000 bonus | 7.65% | $1,912.50 |
| Net bonus | — | $14,587.50 |
This estimate covers separately identified supplemental wages under IRS Pub 15 (2026) section 7 and FICA under 26 U.S.C. § 3101. It excludes state and local taxes, 401(k) deferrals taken from the bonus itself, and nonresident alien adjustments. Educational estimate, not tax advice.
Official sources
- IRS Publication 15 (2026), section 7 — supplemental wages
- IRS Publication 15-T (2026) — percentage method (used by the aggregate method)
- IRS Topic No. 751 — Social Security and Medicare withholding rates
Related tools (United States):
- Take-home paycheck calculator
- Federal income tax withholding calculator
- FICA calculator: Social Security + Medicare
- Overtime pay (FLSA)
Under the flat method in Pub 15 Example 3: $220 federal income tax (22%) plus $76.50 FICA → net $703.50. That is first-look withholding, not your final Form 1040 bill.
Pub 15 section 7 lets the employer elect an optional 22% flat rate (no other percentage allowed) on separately identified supplemental wages, if federal income tax was withheld from your regular wages this year or last. Example: $1,000 → $220.
When supplemental wages paid to you in the calendar year exceed $1 million. With YTD $995,000 and a $25,000 bonus, $5,000 stays at 22% ($1,100) and $20,000 at 37% ($7,400) → federal $8,500.
Yes. Regardless of the method (flat 22% or aggregate), supplemental wages are subject to Social Security (6.2% up to the $184,500 2026 wage base) and Medicare (1.45%, no cap). On $1,000: $62 + $14.50 = $76.50.