2026 state supplemental (bonus) tax withholding rates
For 2026, a bonus paid separately from regular wages is withheld federally at a flat 22% (37% on supplemental pay above $1,000,000 a year), and at the state level 21 of the 51 US jurisdictions apply their own flat supplemental rate, 18 withhold using the regular aggregate method instead, 3 use a special formula, and 9 have no state wage income tax at all.
When a bonus or commission is paid separately from your regular wages, it is withheld as a "supplemental wage." Federally that is a flat 22% (and a mandatory 37% on supplemental pay over $1,000,000/year). Each state does its own thing — some publish a flat supplemental rate, most use the regular aggregate method, nine have no wage income tax, and three use a special formula. This table lists the 2026 method and rate for all 51 jurisdictions, from each state's Department of Revenue.
21
states with their own flat bonus rate
18
use the regular / aggregate method
9
have no state wage income tax
3
special formula (CA, VT, WI)
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State-by-state supplemental withholding, 2026
Tap a column header to sort; search to filter. "Flat" = the state applies its own flat percentage when the bonus is paid separately. "Regular" = no separate rate, withheld with your ordinary wages (aggregate method). Federal flat 22% and 7.65% FICA apply on top everywhere.
51 of 51 shown
| State | Method | Bonus withholding rate (2026) | Notes & source |
|---|---|---|---|
| Alabama (AL) | Flat | 5% | source |
| Alaska (AK) | None | 0% | No state income tax. |
| Arizona (AZ) | Regular | Aggregate (≈2.5%) | No separate supplemental rate; aggregate method. Arizona income tax is a flat 2.5%, so a separately paid bonus is effectively withheld near 2.5%. |
| Arkansas (AR) | Flat | 3.7% | source |
| California (CA) | Special | 10.23% / 6.6% other | 10.23% on bonuses and stock options; 6.6% on other supplemental wages. California SDI (1.3%, no wage cap in 2026) is also withheld but is not an income tax. source |
| Colorado (CO) | Regular | Aggregate (≈4.4%) | No separate supplemental rate; aggregate method. Colorado income tax is a flat 4.4%. |
| Connecticut (CT) | Regular | Aggregate method | No separate supplemental rate; withhold using the graduated income-tax tables (aggregate method). |
| Delaware (DE) | Regular | Aggregate method | No separate flat supplemental rate for a regular bonus; aggregate method. (Delaware suggests a 5.0% rate only for deferred compensation.) |
| District of Columbia (DC) | Regular | Aggregate method | No separate supplemental rate; withhold using the graduated income-tax tables (aggregate method). |
| Florida (FL) | None | 0% | No state income tax. |
| Georgia (GA) | Regular | Aggregate (≈4.99%) | No separate supplemental rate; aggregate method. Georgia income tax is a flat 4.99% for 2026 (verified against HB 463; further trigger-based cuts toward 3.99% are future). source |
| Hawaii (HI) | Regular | Aggregate method | No separate supplemental rate; withhold using the graduated income-tax tables (aggregate method). |
| Idaho (ID) | Flat | 5.3% | Optional flat method when the bonus is paid separately; otherwise aggregate. Matches Idaho's top income rate of 5.3%. source |
| Illinois (IL) | Regular | Aggregate (≈4.95%) | No separate supplemental rate; aggregate method. Illinois income tax is a flat 4.95%. |
| Indiana (IN) | Regular | Aggregate (≈2.95%) | No separate supplemental rate; aggregate method. Indiana income tax is a flat 2.95% (county income taxes apply on top and are not modeled). |
| Iowa (IA) | Flat | 3.8% | Applied when the bonus is paid separately. source |
| Kansas (KS) | Flat | 5% | Applied when the bonus is paid separately. source |
| Kentucky (KY) | Regular | Aggregate (≈3.5%) | No separate supplemental rate; aggregate method. Kentucky income tax is a flat 3.5%. |
| Louisiana (LA) | Regular | Aggregate (≈3%) | No separate supplemental rate; aggregate method. Louisiana income tax is a flat 3.0%. |
| Maine (ME) | Flat | 5% | Optional flat method if the bonus is paid separately; otherwise aggregate. source |
| Maryland (MD) | Flat | 6.5% | Maryland withholds a lump sum annual bonus at the highest state rate of 6.5%, plus the local income tax rate of the county where the employee lives. This estimate shows the 6.5% state portion only. The county piggyback rate, which runs from 2.25% to 3.30% in 2026, is withheld on top and is not included here. source |
| Massachusetts (MA) | Regular | Aggregate method | No separate supplemental rate; aggregate method. Massachusetts is 5% flat, plus a 4% surtax on the part of your income above $1,107,750 for 2026 (the threshold is adjusted every year). |
| Michigan (MI) | Flat | 4.25% | A bonus paid separately from your regular payroll is withheld at a flat 4.25%, with no adjustment for exemptions. Some city income taxes apply on top and are not included here. source |
| Minnesota (MN) | Flat | 6.25% | source |
| Mississippi (MS) | Regular | Aggregate method | No separate supplemental rate; aggregate method. Mississippi taxes income above an exemption at roughly 4.0%. |
| Missouri (MO) | Flat | 4.7% | source |
| Montana (MT) | Flat | 5% | source |
| Nebraska (NE) | Flat | 3.5% | source |
| Nevada (NV) | None | 0% | No state income tax. |
| New Hampshire (NH) | None | 0% | No tax on wage income (the interest/dividends tax has been repealed); 0% on a bonus. |
| New Jersey (NJ) | Regular | Aggregate method | No separate flat supplemental rate; withhold using the graduated income-tax tables (aggregate method). |
| New Mexico (NM) | Flat | 5.9% | New Mexico publishes this rate itself. When your employer figures the federal withholding on the extra pay at a flat percent, FYI-104 tells them to hold back a flat 5.9% for New Mexico. source |
| New York (NY) | Flat | 11.7% | source |
| North Carolina (NC) | Flat | 4.09% | North Carolina's 4.09% bonus rate is its 3.99% flat income-tax rate plus 0.1%, which is how NC-30 arrives at the number. That is why the bonus rate is a little higher than the income-tax rate. source |
| North Dakota (ND) | Flat | 1.5% | source |
| Ohio (OH) | Flat | 2.75% | Ohio's supplemental withholding rate fell to 2.75% for 2026 to match its new flat income-tax rate (was 3.5% in 2025). source |
| Oklahoma (OK) | Flat | 4.5% | Oklahoma's own withholding rule lets an employer take a bonus paid on its own at the state's highest income-tax rate, which is 4.5% for 2026. The rule also allows the aggregate method instead, so your employer may use either. source |
| Oregon (OR) | Flat | 8% | source |
| Pennsylvania (PA) | Regular | Aggregate (≈3.07%) | No separate supplemental rate; aggregate method. Pennsylvania income tax is a flat 3.07% with no standard deduction, so a separately paid bonus is effectively withheld at 3.07% (local earned-income taxes apply on top and are not modeled). |
| Rhode Island (RI) | Flat | 5.99% | source |
| South Carolina (SC) | Regular | Aggregate method | No published flat supplemental rate; aggregate method (certain payments are withheld at the top marginal rate). |
| South Dakota (SD) | None | 0% | No state income tax. |
| Tennessee (TN) | None | 0% | No state income tax on wages. |
| Texas (TX) | None | 0% | No state income tax. |
| Utah (UT) | Regular | Aggregate (≈4.45%) | No separate supplemental rate; aggregate method. Utah income tax is a flat 4.45%, down from 4.5%. source |
| Vermont (VT) | Special | 30% of federal tax | Vermont supplemental withholding is 30% of the FEDERAL income tax withheld on the bonus (not a percent of the bonus). 6% applies to nonqualified deferred comp. source |
| Virginia (VA) | Flat | 5.75% | Optional flat method, or aggregate if income tax was already withheld from regular wages. source |
| Washington (WA) | None | 0% | No tax on wage income (the 7% tax applies only to large long-term capital gains); 0% on a bonus. |
| West Virginia (WV) | Regular | Aggregate method | No separate supplemental rate; withhold using the graduated income-tax tables (aggregate method). |
| Wisconsin (WI) | Special | 3.54%–7.65% | Graduated supplemental rate by annual gross wages: under $12,760 -> 3.54%; $12,760-$25,520 -> 4.65%; $25,520-$280,950 -> 5.30%; over $280,950 -> 7.65%. source |
| Wyoming (WY) | None | 0% | No state income tax. |
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How to read this table
- Federal baseline
- The IRS flat rate on separately paid supplemental wages is 22% for 2026 (unchanged; the TCJA rates were made permanent by P.L. 119-21), with a mandatory 37% on any supplemental wages over $1,000,000 in the year. This is withholding, not your final tax — it trues up on your return (IRS Pub 15, 2026).
- The four state methods
- Flat — the state publishes its own flat supplemental rate, applied to the bonus when it is paid separately. Regular — no separate rate; the bonus is withheld with your ordinary wages using the state tables (aggregate method). None — the state has no wage income tax, so 0% is withheld at the state level. Special — a non-simple formula: California (two rates by pay type), Vermont (30% of the federal withholding), and Wisconsin (a four-band graduated rate).
- Only the income-tax portion is a prepayment
- The federal 22% and any state supplemental rate are withholding defaults, not a special "bonus tax." Your real tax on the bonus is your ordinary marginal rate; the withholding trues up when you file. FICA (7.65%) is not a prepayment — it is owed regardless.
- Sources
- Each state's rate is sourced to its Department of Revenue withholding guide and corroborated against an independent payroll provider (every flat/special rate passed a per-state confirmation gate). Federal figures are from IRS Publication 15 (2026). This is general information, not tax advice.
Cite this data
Free to use and republish with attribution. Suggested citation:
Tools Berry, "2026 State Supplemental (Bonus) Tax Withholding Rates", tools-berry.com/data/state-supplemental-withholding-rates-2026/ (updated July 13, 2026).
Press & reuse: this dataset is free to cite with attribution. Questions or a correction? Contact us.