Supplemental Tax Rates by State

Bonus withholding by state

How a bonus is withheld

The IRS calls a bonus a supplemental wage: pay that is not your regular wage, such as a bonus, a commission or overtime pay (employers may treat overtime and tips as regular wages instead). IRS Publication 15 for 2026 gives the employer two choices when the bonus is paid separately, or shown separately on the same check, and income tax was withheld from your regular wages this year or last year. It can withhold a flat 22%, with no other percentage allowed, or it can add the bonus to your regular wages and figure the tax on the total. If no income tax was withheld from your regular wages, only the second method is allowed.

Two federal rules apply no matter which method is used. When your supplemental pay from the employer passes $1 million in a calendar year, the part above $1 million is withheld at 37%, without regard to your Form W-4. And a bonus is subject to Social Security and Medicare taxes like any other wages: 6.2% for Social Security on wages up to the 2026 wage base of $184,500, and 1.45% for Medicare with no limit. Once your wages from the employer pass $200,000 in the year, the employer also withholds the 0.9% Additional Medicare Tax, whatever your filing status.

How the bonus withholding calculator works

Choose the state where you work and enter the bonus, the wages already paid to you this year and any bonuses already paid this year. The calculator applies the federal flat method (22%, and 37% above $1 million of supplemental pay in the year), Social Security up to the wage base, Medicare with the extra 0.9% above $200,000, and the state's own supplemental rate. For the states that have no flat rate the state line says not computed, because the result depends on your pay period and regular wages; the federal and FICA figures are still shown.

The default example is a $5,000 bonus in California for someone already paid $60,000 this year. Federal withholding is $1,100.00 (22%), Social Security $310.00 and Medicare $72.50. California's rate for bonuses and stock options is 10.23%, which adds $511.50, for a total of $1,994.00 withheld and $3,006.00 paid out, about 60% of the bonus. The same $5,000 paid as a commission is withheld at California's 6.6% rate for other supplemental pay instead. In New York City a $10,000 bonus has $1,170.00 withheld for the state (11.70%) and $425.00 for the city (4.25%), leaving $5,440.00; in Texas, with no state income tax, the same bonus leaves $7,035.00.

State supplemental rates in 2026

• A flat rate for bonuses (28 states): the highest are New York's 11.70% (plus 4.25% in New York City), California's 10.23% for bonuses and stock options (6.6% for other supplemental pay) and Oregon's 8%. Wisconsin's flat percentages depend on your estimated annual gross salary, from 3.54% to 7.65%, and Maryland withholds 6.50% plus the county's top local rate, 8.75% to 9.80% combined. The lowest are North Dakota at 1.50%, Ohio at 2.75%, Indiana at 2.95% plus county tax, Pennsylvania at 3.07% and Nebraska at 3.5%.
• Optional or required: in most of these states the flat rate is an option, and the employer can instead add the bonus to your regular wages. Ohio sets a single rate on supplemental compensation, and Pennsylvania applies its one flat rate of 3.07% to all compensation, bonuses included. Iowa (3.8%), Kansas (5%) and New Mexico (5.9%) tie their flat rate to the federal choice: it applies when federal tax is withheld at the flat rate.
• No flat rate (12 states and DC): Arizona, Colorado, Connecticut, Delaware, Hawaii, Kentucky, Louisiana, Mississippi, New Jersey, South Carolina, Utah, West Virginia and the District of Columbia use their regular withholding method for bonuses, usually by adding the bonus to regular wages. Arizona applies the percentage the employee chose on Form A-4, from 0.5% to 3.5%, or 2.0% if no form is on file.
• Vermont: for nonperiodic payments, Vermont withholding can be estimated at 30% of the federal withholding, so 6.6% of a bonus withheld at 22%.
• No state income tax on wages (9 states): Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. New Hampshire's interest and dividends tax was repealed for taxable periods beginning after 2024.

What changed for 2026

Several states cut their income tax rates for 2026, and some supplemental rates changed with them. Nebraska's optional flat rate is 3.5% in its 2026 circular, down from 5% in 2025. Georgia cut its flat income tax rate from 5.19% to 4.99%, and employers could start withholding at 4.99% on May 11, 2026; Georgia withholds on bonuses at the rate in effect when they are paid. Utah issued new tables at 4.45% for pay periods beginning on or after June 1, 2026, and West Virginia cut its income tax rates by 5% retroactive to January 1, 2026. In Massachusetts the 9% rate applies above a 2026 surtax threshold of $1,107,750. Washington still has no income tax on wages; a new 9.9% income tax for individuals and couples with annual adjusted gross income over $1 million begins on January 1, 2028.

When the bonus comes in your regular paycheck

The flat rates above are for a bonus paid on its own or shown separately on the check. When supplemental pay is included in a regular paycheck without showing the amount of each, IRS Publication 15 says to withhold as if the total were a single payment for a regular payroll period, and many states say the same. California requires employers to treat the sum as regular wages when a bonus is paid at the same time as regular wages, and Connecticut, Delaware, Hawaii, Kentucky, Maine, Mississippi and Virginia describe the same approach in their guides. Because the regular tables treat the combined check as your pay for that period, withholding on a combined check can be higher than a flat rate would be. Arkansas takes a different route for a bonus paid at the same time as regular wages: employers deduct 3.7% of the bonus for state income tax.

Supplemental tax rates for all 50 states and DC

As of September 28, 2026. Rates and methods come from each state's 2026 withholding guide or tables, its withholding rule, or its revenue department's website. Scroll the table sideways on a phone.

Local income taxes are not included except New York City and Yonkers. Indiana counties, Maryland counties and other local taxes can add to the amount withheld.

Why your bonus check looks smaller

Withholding on a bonus often looks high because it stacks several flat percentages: 22% federal, 7.65% for Social Security and Medicare, and the state rate. The 22% federal rate does not change with your tax bracket, so it may not match the tax rate that applies to you. Our guide to how bonuses are taxed covers the federal methods in detail, bonus withholding shortfall shows when 22% falls short of your real rate, and the supplemental wages withholding guide lists the federal rules for each type of payment. For a federal-only estimate try the bonus tax calculator.