2026 tax year

Bonus after tax

Employers withhold a flat 22% in federal income tax on supplemental wages, regardless of your bracket. That is why a bonus cheque looks smaller than expected — and why some of it usually comes back at filing.

Common questions

How is a bonus taxed?

As ordinary income on your return, but usually withheld differently. Employers commonly apply a flat supplemental withholding rate to a bonus rather than your normal payroll rate, which is why the deduction can look far larger than the one on a regular paycheck.

Why was so much withheld from my bonus?

Because supplemental withholding is a flat rate applied to the payment, not a calculation against your personal circumstances. It is withholding, not final tax: if too much came out, the difference comes back when you file.