California Bonus Tax Calculator 2026
Calculate supplemental wage withholding using 22% flat federal rate and 10.23% California rate.
Bonus Tax Deduction Summary
California Bonus Tax Rates & Supplemental Wage Rules (2026)
Under California Employment Development Department (EDD) regulations, supplemental wages—including annual performance bonuses, sign-on bonuses, sales commissions, overtime, and severance—are subject to specific tax withholding rules separate from regular salary.
Federal vs. California Bonus Tax Rates Summary
| Tax Category | Federal Rule (IRS Pub 15-T) | California Rule (EDD DE 44) |
| Flat / Supplemental Rate | 22% (up to $1 Million) | 10.23% (Bonus & Stock Options) / 6.6% (Other Supplemental) |
| High Wage Rate | 37% (portion over $1 Million) | Aggregate / Standard PIT brackets (up to 14.4%) |
| FICA Social Security | 6.2% (up to $176,100 wage cap) | N/A |
| FICA Medicare | 1.45% (no cap) + 0.9% over $200k | N/A |
| California SDI | N/A | 1.1% (no wage limit in 2026) |
How Bonus Tax Withholding Works in California
Employers in California generally have two methods for withholding tax on bonus payments: the flat percentage method or the aggregate method. The flat percentage method applies a statutory federal supplemental rate of 22% and a California state rate of 10.23% (or 6.6% for non-bonus supplemental wages).
Frequently Asked Questions About California Bonus Taxes
Are bonuses taxed higher in California?
Bonuses are not taxed at a higher final income rate, but withholding rates may feel higher because of the mandatory flat 22% federal and 10.23% state rates applied up front.