Bonus Tax in Colorado (2026)
A bonus is supplemental pay, and it is usually withheld at a flat federal rate rather than your normal bracket. Employers apply 22% to supplemental wages up to a yearly threshold, and a higher rate on the part above it. FICA comes out on top, and then the Colorado state layer applies.
The employee FAMLI paid-leave premium still applies to a bonus, up to the yearly wage cap, on top of the flat state rate.
Worked example: a $5,000 bonus in Colorado
| Federal withholding (22%) | $1,100 |
| FICA (Social Security + Medicare) | $383 |
| Colorado withholding | $220 |
| Total withheld | $1,703 |
| You keep about | $3,297 |
Assumes year-to-date wages under the $184,500 Social Security wage base. Withholding, not final tax — it reconciles on your return.
Bonus tax calculator (2026)
| Federal withholding (flat 22%) | $1,100 |
| FICA (Social Security + Medicare) | $383 |
| Colorado withholding (4.4%) | $220 |
| You keep about | $3,297 |
Assumes your year-to-date wages are under the $184,500 Social Security wage base. Withholding, not your final tax — it reconciles on your return.
See what your regular paycheck keeps in Colorado: Colorado paycheck calculator.
Frequently asked questions
Why is my bonus taxed so high?
What you see is withholding, not your final tax. Federal rules withhold supplemental pay like a bonus at a flat 22%, which is often more than your normal rate, so the bonus looks heavily taxed. It squares up when you file, where your real rate is applied to your total income.
Does Colorado have a flat bonus withholding rate?
It depends on the state. The breakdown above shows Colorado's supplemental rate if it has one, or notes when the aggregate method applies instead.
Federal: IRS 2026 brackets (Rev. Proc. 2025-32) · FICA: IRS Topic 751 · Wage base: SSA · Colorado: Colorado Department of Revenue / Colorado FAMLI Division · CO FAMLI (employee share): Colorado FAMLI Division. Rates current as of July 17, 2026. Annual-liability estimates, not payroll withholding — see methodology.