The 22 percent federal flat supplemental rate in 2026 applies when the payment is supplemental wages, identified separately from regular wages, and income tax has been withheld from regular wages earlier in the current or prior year. If the employee\u2019s total supplemental wages exceed 1 million dollars for the year, the excess is subject to a 37 percent federal rate. Employers can also use the aggregate method instead of the flat rate in many cases.

This calculator uses the federal 22 percent flat supplemental rate for 2026, standard Social Security and Medicare rates, and a simple state supplemental percentage you choose. Payroll systems apply IRS and state rules in more detail, including wage base limits, additional Medicare thresholds, local taxes, and how the bonus is combined with regular wages. Treat this as a planning estimate and confirm with your actual payroll provider for precise withholding.

Federal supplemental wage rules apply to W‑2 employees, not independent contractors paid on Form 1099. Contractors typically receive gross payments with no withholding and handle federal and state taxes through estimated payments and the self-employment tax. For 1099 work, it may be better to use tools like the self-employment tax calculator, 1099 paycheck calculator, and freelance hourly rate calculator on USAJobsKit along with this tool for context.

This calculator focuses on the supplemental piece of your pay. To see your whole paycheck, combine these results with tools like the paycheck calculator, gross pay calculator, tax withholding calculator, and take home pay calculator on USAJobsKit. That combination gives you a clearer picture of how bonuses and other extra wages fit into your total 2026 income and tax picture.