The short answer
If your bonus arrived much smaller than you expected, the reason is almost never a special higher tax rate on bonuses. There is no such rate. A bonus is ordinary income. It is taxed on the same brackets as your salary when you file your return.
The difference is withholding, the amount your employer sets aside on payday. The IRS treats bonuses as supplemental wages and allows employers to withhold federal tax on them at a flat 22% instead of running the payment through your W-4. Once you add FICA and your state’s withholding, a bonus can lose 30% to 40% up front even when your actual tax rate is lower.
One point matters more than the rest: withholding is a prepayment, not the final bill. Any amount over-withheld or under-withheld is settled when you file. The sections below break down each piece for 2026, including every state’s rate.
How federal bonus withholding works
The federal rules come from IRS Publication 15. Employers may use either of two methods.
- Percentage method (the common one). When the bonus is paid separately from your regular paycheck, the employer withholds a flat 22% on the first $1,000,000 of supplemental wages for the year and 37% on any amount above $1,000,000. Your tax bracket does not change this. Everyone receives the same flat 22%.
- Aggregate method. When the bonus is combined into a normal paycheck, the employer adds it to your regular wages and withholds as if the total were your usual pay, based on your W-4. This can withhold more or less than 22%, depending on your elections.
Most employers use the percentage method because it is simpler, which is why 22% is the figure most people see. Once supplemental wages pass $1,000,000 for the year, the amount above that threshold is withheld at the top 37% rate.
FICA withholding and the visa exception
Federal income tax is not the only amount withheld. FICA applies to bonuses the same way it applies to regular pay:
- Social Security: 6.2%, up to the annual Social Security wage base.
- Medicare: 1.45% on every dollar, plus an additional 0.9% on wages above $200,000.
For most employees that is another 7.65% off the top. This is where work-visa holders differ from the standard bonus-tax article. F-1 students on OPT (first 5 calendar years) and J-1 research scholars (first 2 years), while they remain nonresidents, are exempt from FICA under IRC §3121(b)(19). Their bonus is not subject to Social Security or Medicare. H-1B, O-1, TN, and L-1 holders generally pay full FICA. Our visa guides explain which rule applies to you.
State supplemental rates, highest to lowest
States handle bonuses in one of two ways. About a dozen publish a separate supplemental withholding rate that employers apply to bonuses. Every other state withholds at its regular income-tax rate. The states with a published 2026 supplemental rate are ranked below.
Flat rate an employer withholds on a bonus paid separately from your regular paycheck. Every other state uses its normal withholding tables instead (see the full table below).
California (10.23%) and New York (11.7%) sit at the top, and they are also the two most-searched. Both are covered in detail below.
Every state’s bonus withholding, 2026
The chart above covers only the states with a published supplemental rate. The table below covers all states, sorted by how much comes off the top of a bonus for a standard H-1B holder. States without a separate supplemental rate are flagged. For those, the calculator applies the regular flat rate (or the top marginal rate for bracketed states), which is the same fallback most payroll systems use.
"Off the top" = federal 22% + FICA 7.65% + state, on a $10,000 bonus for a standard H-1B holder. Use Ctrl/⌘+F to find your state.
| State | Federal | State rate | Off the top | Basis |
|---|---|---|---|---|
| New York | 22% | 11.70% | 41.35% | Published supplemental rate |
| Hawaii | 22% | 11.00% | 40.65% | Top marginal rate (est.) * |
| District of Columbia | 22% | 10.75% | 40.40% | Top marginal rate (est.) * |
| California | 22% | 10.23% | 39.88% | Published supplemental rate |
| Oregon | 22% | 9.00% | 38.65% | Published supplemental rate |
| Vermont | 22% | 8.75% | 38.40% | Regular flat rate (est.) * |
| Minnesota | 22% | 7.85% | 37.50% | Regular flat rate (est.) * |
| Wisconsin | 22% | 7.65% | 37.30% | Regular flat rate (est.) * |
| Maine | 22% | 7.15% | 36.80% | Regular flat rate (est.) * |
| Delaware | 22% | 6.60% | 36.25% | Regular flat rate (est.) * |
| New Jersey | 22% | 6.37% | 36.02% | Published supplemental rate |
| Rhode Island | 22% | 5.99% | 35.64% | Regular flat rate (est.) * |
| Maryland | 22% | 5.75% | 35.40% | Published supplemental rate |
| Virginia | 22% | 5.75% | 35.40% | Published supplemental rate |
| Montana | 22% | 5.65% | 35.30% | Regular flat rate (est.) * |
| Kansas | 22% | 5.58% | 35.23% | Regular flat rate (est.) * |
| Connecticut | 22% | 5.50% | 35.15% | Regular flat rate (est.) * |
| Idaho | 22% | 5.30% | 34.95% | Regular flat rate (est.) * |
| South Carolina | 22% | 5.21% | 34.86% | Regular flat rate (est.) * |
| Massachusetts | 22% | 5.00% | 34.65% | Published supplemental rate |
| Alabama | 22% | 5.00% | 34.65% | Regular flat rate (est.) * |
| Georgia | 22% | 4.99% | 34.64% | Published supplemental rate |
| Illinois | 22% | 4.95% | 34.60% | Published supplemental rate |
| New Mexico | 22% | 4.90% | 34.55% | Regular flat rate (est.) * |
| Missouri | 22% | 4.70% | 34.35% | Regular flat rate (est.) * |
| West Virginia | 22% | 4.58% | 34.23% | Regular flat rate (est.) * |
| Nebraska | 22% | 4.55% | 34.20% | Regular flat rate (est.) * |
| Utah | 22% | 4.50% | 34.15% | Regular flat rate (est.) * |
| Oklahoma | 22% | 4.50% | 34.15% | Regular flat rate (est.) * |
| Colorado | 22% | 4.40% | 34.05% | Regular flat rate (est.) * |
| Michigan | 22% | 4.25% | 33.90% | Published supplemental rate |
| Mississippi | 22% | 4.00% | 33.65% | Regular flat rate (est.) * |
| North Carolina | 22% | 3.99% | 33.64% | Published supplemental rate |
| Iowa | 22% | 3.80% | 33.45% | Regular flat rate (est.) * |
| Arkansas | 22% | 3.70% | 33.35% | Regular flat rate (est.) * |
| Kentucky | 22% | 3.50% | 33.15% | Regular flat rate (est.) * |
| Ohio | 22% | 3.50% | 33.15% | Published supplemental rate |
| Pennsylvania | 22% | 3.07% | 32.72% | Published supplemental rate |
| Louisiana | 22% | 3.00% | 32.65% | Regular flat rate (est.) * |
| Indiana | 22% | 2.95% | 32.60% | Regular flat rate (est.) * |
| Arizona | 22% | 2.50% | 32.15% | Regular flat rate (est.) * |
| North Dakota | 22% | 2.50% | 32.15% | Regular flat rate (est.) * |
| Alaska | 22% | 0% | 29.65% | No state income tax |
| Florida | 22% | 0% | 29.65% | No state income tax |
| Nevada | 22% | 0% | 29.65% | No state income tax |
| New Hampshire | 22% | 0% | 29.65% | No state income tax |
| South Dakota | 22% | 0% | 29.65% | No state income tax |
| Tennessee | 22% | 0% | 29.65% | No state income tax |
| Texas | 22% | 0% | 29.65% | No state income tax |
| Washington | 22% | 0% | 29.65% | No state income tax |
| Wyoming | 22% | 0% | 29.65% | No state income tax |
* Estimated: the state publishes no separate supplemental rate, so we apply its regular flat rate (or top marginal rate for bracketed states), the same fallback your employer's payroll system typically uses. F-1 OPT and J-1 holders in nonresident status are FICA-exempt, so their "off the top" figure is 7.65% lower. Always confirm against your state's withholding guide.
Nine states (Texas, Florida, Washington, Nevada, South Dakota, Wyoming, Alaska, Tennessee, and New Hampshire) have no state income tax, so only federal tax and FICA apply to a bonus in those states.
California: why it’s 10.23%
California’s Employment Development Department (EDD) sets a 10.23% supplemental withholding rate for bonuses, commissions, and stock options paid separately from regular wages. A lower 6.6% rate applies to certain bonus-only payments. The 10.23% figure is the conservative rate that also covers stock-based pay, and it is the rate most employers apply by default.
For a standard H-1B holder who receives a $10,000 bonus in California, the federal 22%, FICA 7.65%, and state 10.23% combine into a large amount withheld. Keep in mind that 10.23% is California’s withholding rate, not your final state tax. Your actual California liability is settled on your state return. You can see the live numbers on our California bonus calculator.
New York: 11.7% on separate bonuses
New York’s rate comes from withholding publication NYS-50-T-NYS. For 2026, a bonus paid separately from regular wages is withheld at 11.7% at the state level. New York City residents have additional local withholding on top of that. As with California, this is a flat withholding rate that is reconciled when you file your New York return, not a separate bonus tax. You can run your own figure on the New York bonus calculator.
Withholding is not your final tax
This is the point that causes the most confusion, so it helps to make it concrete. Here is what is withheld from a $10,000 bonus in California, and what happens to it afterward.
The figure on the left is what you take home on payday. The figures on the right determine whether you get part of it back. If the flat 22% federal withholding is more than your marginal rate, you have prepaid too much and the IRS refunds the difference. If your marginal rate is higher, the flat rate withheld too little and you will owe the balance at filing. In either case, the bonus did not change your tax rate. It changed your withholding.
Frequently asked questions
Are bonuses taxed at a higher rate than my salary?
How much is my bonus taxed in my state?
Why was so much taken out of my bonus check?
Will I get my bonus tax back?
Is the California bonus tax rate really 10.23%?
Do F-1 (OPT) and J-1 visa holders pay tax on bonuses?
Calculate your exact bonus take-home
The rates above are the headline figures. To see the actual dollar breakdown for your visa, state, and bonus amount, including the FICA exemption if you are on F-1 OPT or J-1, use the calculator.
- H-1B bonus in California · New York · Texas
- F-1 OPT bonus (FICA-exempt)
- Or start from the main take-home calculator and choose your scenario.
Every figure on this page is computed from published IRS, SSA, and state Department of Revenue sources, using the same engine behind our methodology.