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Supplemental Wage Withholding Calculator22 Percent and 37 Percent

What does this come to under the current IRS rules?

Federal income tax withholding on a bonus under the optional 22 percent flat rate and the mandatory 37 percent rate above $1 million.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Federal income tax to withhold
$77,500
Portion at the optional 22% flat rate
$100,000
Portion above $1 million at the mandatory 37% rate
$150,000
Drawn to one scale
Federal income tax to withhold$77,500
Portion at the optional 22% flat rate$100,000
Portion above $1 million at the mandatory 37% rate$150,000
All results
MeasureResult
Federal income tax to withhold$77,500
Portion at the optional 22% flat rate$100,000
Portion above $1 million at the mandatory 37% rate$150,000
Effective withholding rate on this payment31.00%
How this was worked out
Work shownrecomputed as you type
Supplemental wages above $1 million in the calendar year: 37%, regardless of Form W-4
Up to $1 million, identified separately: optional flat 22% (or the aggregate method)
Withholding = 22% x portion within $1 million + 37% x portion above

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Supplemental wages above $1 million in the calendar year: 37%, regardless of Form W-4
  • Up to $1 million, identified separately: optional flat 22% (or the aggregate method)
  • Withholding = 22% x portion within $1 million + 37% x portion above

How it works

Publication 15 (2026) keeps the supplemental wage withholding rate at 22 percent, and 37 percent once supplemental wages paid to an employee during the calendar year exceed $1 million. The 37 percent applies to the excess without regard to Form W-4, counting payments from all businesses under common control.

Below $1 million, a supplemental payment identified separately from regular wages may be withheld at a flat 22 percent if income tax was withheld from regular wages in the current or prior year; otherwise use the aggregate method. Social Security, Medicare and FUTA apply to supplemental wages under any method.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Can I withhold more than 22 percent under the flat rate method?

No. Publication 15 states the flat rate method is 22 percent with no other percentage allowed; use the aggregate method instead.

Are bonuses, commissions and severance supplemental wages?

Yes, along with overtime pay, back pay, accumulated sick leave payments, awards and prizes; overtime and tips may be treated as regular wages.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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