Bonus Tax in Texas (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 Texas state layer applies.

Texas levies no state income tax, so only the federal 22% supplemental withholding and FICA come out of a bonus. Texas levies no personal income tax on wages. The Texas Constitution (Art. 8, Sec. 24) bars a personal income tax without statewide voter approval, and no such tax exists. There are no employee-paid state payroll levies.

Texas takes no state tax from a bonus, so only federal withholding and FICA reduce it.

Worked example: a $5,000 bonus in Texas

Federal withholding (22%)$1,100
FICA (Social Security + Medicare)$383
Texas withholding$0
Total withheld$1,483
You keep about$3,517

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
Texas withholding$0
You keep about$3,517

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 Texas: Texas 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 Texas have a flat bonus withholding rate?

It depends on the state. The breakdown above shows Texas'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 · Texas: Texas Comptroller of Public Accounts. Rates current as of July 16, 2026. Annual-liability estimates, not payroll withholding — see methodology.