NY Supplemental Wage Tax Withholding Calculator 2026 — Estimate Bonus, Commission & Severance Taxes
Updated for 2026 — Calculate your NY State (11.70%), NYC (4.25%), and Yonkers (1.95975%) withholding on bonuses, commissions, and severance pay. Free and instant.
Last verified: August 2026
Calculate Your NY Supplemental Wage Withholding
Enter your supplemental wage amount below to see exactly how much tax will be withheld in 2026.
✓ Updated for 2026 — NYS-50-T-NYS rates ✓ Official sources verified ✓ Free & instant results
NY Supplemental Wage Withholding: See the Numbers
Here's how much tax you'd pay on common supplemental wage amounts in 2026. All examples include NY State (11.70%), federal (22%), and FICA/Medicare (7.65%).
NYC Resident — Bonus Tax Withholding Examples
| Bonus Amount | NY State (11.70%) | NYC Supplemental (4.25%) | Federal (22%) | FICA + Medicare (7.65%) | Total Withholding | Net Take-Home |
|---|---|---|---|---|---|---|
| $1,000 | $117.00 | $42.50 | $220.00 | $76.50 | $456.00 | $544.00 |
| $2,500 | $292.50 | $106.25 | $550.00 | $191.25 | $1,140.00 | $1,360.00 |
| $5,000 | $585.00 | $212.50 | $1,100.00 | $382.50 | $2,280.00 | $2,720.00 |
| $10,000 | $1,170.00 | $425.00 | $2,200.00 | $765.00 | $4,560.00 | $5,440.00 |
| $25,000 | $2,925.00 | $1,062.50 | $5,500.00 | $1,912.50 | $11,400.00 | $13,600.00 |
Other NY State (No Local Tax) — Bonus Tax Withholding Examples
| Bonus Amount | NY State (11.70%) | Federal (22%) | FICA + Medicare (7.65%) | Total Withholding | Net Take-Home |
|---|---|---|---|---|---|
| $1,000 | $117.00 | $220.00 | $76.50 | $413.50 | $586.50 |
| $2,500 | $292.50 | $550.00 | $191.25 | $1,033.75 | $1,466.25 |
| $5,000 | $585.00 | $1,100.00 | $382.50 | $2,067.50 | $2,932.50 |
| $10,000 | $1,170.00 | $2,200.00 | $765.00 | $4,135.00 | $5,865.00 |
| $25,000 | $2,925.00 | $5,500.00 | $1,912.50 | $10,337.50 | $14,662.50 |
Yonkers Resident — Bonus Tax Withholding Examples
| Bonus Amount | NY State (11.70%) | Yonkers Resident (1.95975%) | Federal (22%) | FICA + Medicare (7.65%) | Total Withholding | Net Take-Home |
|---|---|---|---|---|---|---|
| $1,000 | $117.00 | $19.60 | $220.00 | $76.50 | $433.10 | $566.90 |
| $2,500 | $292.50 | $48.99 | $550.00 | $191.25 | $1,082.74 | $1,417.26 |
| $5,000 | $585.00 | $97.99 | $1,100.00 | $382.50 | $2,165.49 | $2,834.51 |
| $10,000 | $1,170.00 | $195.98 | $2,200.00 | $765.00 | $4,330.98 | $5,669.02 |
| $25,000 | $2,925.00 | $489.94 | $5,500.00 | $1,912.50 | $10,827.44 | $14,172.56 |
Flat Rate vs Aggregate Method: Real Example
Scenario: NYC resident with $2,000 regular bi-weekly wages receives a $5,000 bonus.
| Method | NY State | NYC | Federal | FICA + Medicare | Total Withholding | Net Take-Home |
|---|---|---|---|---|---|---|
| Flat Rate (11.70%) | $585.00 | $212.50 | $1,100.00 | $382.50 | $2,280.00 | $2,720.00 |
| Aggregate Method | $0.00 | ≈$41.00 | ≈$1,100.00 | ≈$382.50 | ≈$1,523.50 | ≈$3,476.50 |
Difference: The aggregate method results in ~$756.50 less withholding on the bonus compared to the flat rate method in this example (assuming single filing status and zero withholding allowances). Your employer's method choice matters.
What Is the NY Supplemental Wage Tax Rate for 2026?
The New York State supplemental wage tax rate for 2026 is 11.70%. This flat rate applies to all supplemental wages paid to employees in New York, regardless of their total income or filing status. It was set by the NYS Department of Taxation and Finance and remains unchanged from 2025.
In addition to the NY State rate, two localities impose their own supplemental wage taxes:
- NYC residents pay an additional 4.25% on supplemental wages. This is NYC's supplemental flat rate; regular NYC wages are taxed on a graduated scale of 3.078%–3.876% depending on income and filing status.
- Yonkers residents pay 1.95975% on supplemental wages under the optional flat rate withholding method. This rate is the equivalent of a 16.75% surcharge on the calculated New York State income tax — which is how the Yonkers resident tax is actually structured under Publication NYS-50-T-Y (1/26). The 1.95975% flat rate is the officially sanctioned simplified shortcut for supplemental wage withholding.
- Yonkers nonresidents who earn wages from Yonkers sources pay 0.50%.
These local taxes are automatically withheld by your employer if your work address or residence is in NYC or Yonkers. They appear as separate line items on your pay stub.
2026 NY Supplemental Tax Rates — Quick Reference
- NY State: 11.70%
- NYC Resident (supplemental flat rate): 4.25% (regular NYC wages are taxed on a graduated scale of 3.078%–3.876%)
- Yonkers Resident (supplemental flat rate): 1.95975% (equivalent to a 16.75% surcharge on state tax per NYS-50-T-Y)
- Yonkers Nonresident: 0.50%
- Federal: 22% (up to $1,000,000) / 37% (on any excess above $1,000,000)
- FICA + Medicare: 7.65%
Sources: NYS-50-T-NYS (1/26), NYS-50-T-Y (1/26), NYS-50-T-NYC (1/26) & IRS Publication 15-T (2026)
What Qualifies as Supplemental Wages in NY?
New York defines supplemental wages as any payment made to an employee that is not part of their regular salary or hourly wages. The most common types are:
- Bonuses — performance bonuses, signing bonuses, holiday bonuses, referral bonuses
- Commissions — sales commissions paid separately from regular wages
- Severance pay — payments made upon termination of employment
- Overtime — only if paid separately from regular wages (not on the same check)
- Sales awards — cash prizes or awards for sales performance
- Accumulated sick leave — payments for unused sick time
- Vacation pay — if paid in addition to regular wages
If your employer combines your bonus with your regular paycheck, the aggregate method may apply instead of the flat rate. This is a critical distinction that affects how much tax is withheld.
How to Calculate NY Supplemental Wage Withholding
Calculating NY supplemental wage withholding is straightforward once you know your location and the amount. Here's a step-by-step walkthrough.
Step 1: Identify Your Supplemental Wage Amount
Start with the gross amount of your bonus, commission, or severance payment before any deductions. This is the number your employer starts with before applying any taxes. If your commission is tied to a draw against future earnings, the NY draw against commission payroll calculator shows how the draw, tax withholding, and recovery balance work together.
Step 2: Determine Your Location
Your location determines which local taxes apply:
- NYC resident → NY State (11.70%) + NYC supplemental flat rate (4.25%)
- Yonkers resident → NY State (11.70%) + Yonkers (1.95975%)
- Yonkers nonresident → NY State (11.70%) + Yonkers (0.50%)
- Other NY State → NY State (11.70%) only
Step 3: Apply the Flat Rate Method (or Aggregate Method)
Flat Rate Method: Simply multiply your supplemental wage by each applicable rate.
Example: $5,000 bonus for a NYC resident
- NY State: $5,000 × 11.70% = $585.00
- NYC supplemental flat rate: $5,000 × 4.25% = $212.50
- Federal: $5,000 × 22% = $1,100.00
- FICA + Medicare: $5,000 × 7.65% = $382.50
- Total Withholding: $2,280.00
- Net Take-Home: $2,720.00
Step 4: Add Federal and FICA Taxes
Federal law requires a flat 22% withholding on supplemental wages up to $1,000,000. The 37% rate applies only to the excess above $1,000,000 — not to the entire amount. FICA (Social Security + Medicare) adds 7.65% on top of everything.
Real-World Example: $10,000 Commission — NYC Resident
Commission amount: $10,000.00
- NY State (11.70%): $1,170.00
- NYC supplemental flat rate (4.25%): $425.00
- Federal (22%): $2,200.00
- FICA + Medicare (7.65%): $765.00
- Total Withholding: $4,560.00
- Net Take-Home: $5,440.00
This means over 45% of your commission goes to taxes before you see a dime.
Flat Rate Method vs Aggregate Method: What's the Difference?
New York allows employers to use one of two methods to calculate supplemental wage withholding. The method your employer chooses can significantly affect your take-home pay.
The Flat Rate Method (Employer's Standard Choice)
The flat rate method is the most common approach. Your employer simply applies the 11.70% NY State rate (plus any local taxes) to your supplemental wage. This is straightforward and requires no additional calculations.
When it's used: Most employers use this method for one-time bonus payments, severance, and commissions paid separately from regular wages.
Example: $5,000 bonus for a NYC resident
- NY State: $5,000 × 11.70% = $585.00
- NYC supplemental flat rate: $5,000 × 4.25% = $212.50
- Federal: $5,000 × 22% = $1,100.00
- FICA + Medicare: $5,000 × 7.65% = $382.50
- Total Withholding: $2,280.00
- Net Take-Home: $2,720.00
The Aggregate Method (More Accurate)
The aggregate method combines your supplemental wage with your regular wages for the pay period. Your employer calculates withholding on the combined amount, then subtracts what would have been withheld on your regular wages alone. The difference is the tax on your supplemental wage.
When it's used: This method is required when your bonus or commission is paid on the same check as your regular wages. It's also used when the flat rate method would result in under-withholding.
Example: $5,000 bonus + $2,000 regular wages for a NYC resident
- Regular bi-weekly wages: $2,000.00
- Bonus: $5,000.00
- Combined total: $7,000.00
- Total withholding on the bonus under the aggregate method (estimate): ≈$1,523.50 (NY State $0, NYC ≈$41, federal ≈$1,100, FICA ≈$382.50; assumes single filing status and zero allowances)
- Net take-home on the bonus (aggregate): ≈$3,476.50
Which Method Is Better for You?
The aggregate method generally results in less withholding on your bonus because it accounts for your regular wages and withholding allowances. However, you don't get to choose — your employer determines which method applies based on how the payment is structured.
Flat Rate vs Aggregate Method Comparison
| Factor | Flat Rate Method | Aggregate Method |
|---|---|---|
| Calculation | Simple multiplication | Complex, step-by-step |
| Withholding Amount | Fixed rate (11.70% + local) | Varies based on regular wages |
| When Required | Standard for separate payments | Required for combined payments |
| Employee Control | None | None |
| Typical Result | Higher withholding | Lower withholding |
NYC & Yonkers Local Taxes on Supplemental Wages
Many New Yorkers are surprised to learn that their bonus or commission is subject to local taxes in addition to NY State tax. If you live or work in NYC or Yonkers, local taxes apply automatically.
NYC Resident Tax (4.25% Supplemental Rate)
NYC uses a 4.25% supplemental flat rate for withholding on bonuses, commissions, severance, and all other supplemental wages. This is a special simplified rate that employers apply to supplemental payments. It is separate from the graduated NYC income tax rates (3.078%–3.876%) that apply to your regular wages based on income and filing status. The supplemental flat rate can appear higher than the regular rate for lower-income earners but reflects a conservative withholding approach. The tax is withheld by your employer and appears as "NYC Tax" on your pay stub.
Example: $5,000 bonus for a NYC resident
- NY State (11.70%): $585.00
- NYC supplemental flat rate (4.25%): $212.50
- Federal (22%): $1,100.00
- FICA + Medicare (7.65%): $382.50
- Total Withholding: $2,280.00
- Net Take-Home: $2,720.00
Without the NYC tax, this same bonus would have withholding of $2,067.50 and a net take-home of $2,932.50 — a $212.50 difference.
Yonkers Resident Tax (1.95975% Supplemental Rate)
Yonkers imposes a resident personal income tax surcharge equal to 16.75% of the employee's calculated New York State income tax liability. For supplemental wages, employers use the optional flat rate of 1.95975% applied directly to the supplemental payment — this is mathematically equivalent to applying the 16.75% surcharge to the 11.70% NY State supplemental rate (11.70% × 16.75% ≈ 1.96%). Per Publication NYS-50-T-Y (1/26), this 1.95975% flat rate is the officially sanctioned method for withholding on separately paid supplemental wages.
Example: $5,000 bonus for a Yonkers resident
- NY State (11.70%): $585.00
- Yonkers resident supplemental rate (1.95975%): $97.99
- Federal (22%): $1,100.00
- FICA + Medicare (7.65%): $382.50
- Total Withholding: $2,165.49
- Net Take-Home: $2,834.51
Yonkers Nonresident Tax (0.50%)
If you don't live in Yonkers but work for a Yonkers-based employer, you pay 0.50% on wages earned from Yonkers sources. This applies to supplemental wages as well.
Example: $5,000 bonus for a Yonkers nonresident
- NY State (11.70%): $585.00
- Yonkers Nonresident (0.50%): $25.00
- Federal (22%): $1,100.00
- FICA + Medicare (7.65%): $382.50
- Total Withholding: $2,092.50
- Net Take-Home: $2,907.50
How Local Taxes Affect Your Take-Home Pay
The combined effect of NY State and local taxes can be substantial. Here's a quick comparison of $5,000 bonuses across different locations:
| Location | NY State | Local Tax | Total State + Local | Net Take-Home |
|---|---|---|---|---|
| Other NY State | $585.00 | $0.00 | $585.00 | $2,932.50 |
| Yonkers Nonresident | $585.00 | $25.00 | $610.00 | $2,907.50 |
| Yonkers Resident | $585.00 | $97.99 | $682.99 | $2,834.51 |
| NYC Resident | $585.00 | $212.50 | $797.50 | $2,720.00 |
NYC residents pay $212.50 more in local taxes than other NY State residents on a $5,000 bonus. That's a significant difference in your take-home pay. For a full paycheck breakdown beyond bonuses, see our New York Paycheck Calculators or our NY Bonus Tax Calculator.
Federal Supplemental Wage Withholding (22% / 37%)
In addition to NY State and local taxes, federal law requires withholding on supplemental wages. The federal rules are different from New York's, and it's important to understand both.
The 22% Federal Rate
For supplemental wages up to $1,000,000 in a calendar year, the federal withholding rate is 22%. This applies to bonuses, commissions, severance, and other supplemental payments.
Example: $5,000 bonus
- Federal withholding: $5,000 × 22% = $1,100.00
The 37% Federal Rate (The $1 Million Threshold)
If your total supplemental wages exceed $1,000,000 in a calendar year, the excess above $1,000,000 is withheld at 37%. The first $1,000,000 remains at 22% — only the portion exceeding $1,000,000 is taxed at the higher rate.
Example: $1,500,000 bonus
- First $1,000,000: $1,000,000 × 22% = $220,000.00
- Excess ($500,000): $500,000 × 37% = $185,000.00
- Total federal withholding: $405,000.00
Federal vs NY: Two Separate Tax Systems
It's important to understand that federal and NY State taxes are calculated independently. Your employer withholds both from your supplemental wage, but they go to different government agencies.
Federal vs NY State Supplemental Tax Rates
| Tax Type | Rate | Applies To |
|---|---|---|
| Federal (standard) | 22% | Up to $1,000,000 in supplemental wages |
| Federal (high) | 37% | Excess above $1,000,000 only |
| NY State | 11.70% | All supplemental wages |
| NYC (supplemental flat rate) | 4.25% | All supplemental wages for NYC residents |
| Yonkers (resident) | 1.95975% | All supplemental wages for Yonkers residents |
Key difference: NY State has a flat 11.70% rate with no upper threshold. The federal rate changes from 22% to 37% only on the excess above $1,000,000 in supplemental wages for the year.
FICA and Medicare: The 7.65% Add-On
FICA (Social Security) and Medicare taxes add another 7.65% to your supplemental wage withholding. This applies to all wages, including supplemental payments.
Here's what makes up the 7.65%:
- Social Security: 6.20% (up to $184,500 in 2026)
- Medicare: 1.45% (no upper limit)
Note: If your total wages exceed $200,000 (single filers) or $250,000 (married filing jointly), an additional 0.9% Medicare surtax applies. This is not automatically withheld from supplemental wages unless your employer is notified.
Why Was My Bonus Check So Small?
You're not alone in asking this question. Many employees are shocked when they see their bonus check after taxes. A $5,000 bonus can easily become $2,720 or less in take-home pay.
Here's why your bonus check seems so small:
1. The Combined Tax Rate Is High
When you combine all the withholding rates, the total tax on a bonus in NYC can exceed 45%.
Example: $5,000 bonus — NYC resident
- NY State (11.70%): $585.00
- NYC supplemental flat rate (4.25%): $212.50
- Federal (22%): $1,100.00
- FICA + Medicare (7.65%): $382.50
- Total: $2,280.00 (45.60% of your bonus)
2. Bonuses Are Taxed at a Flat Rate
Unlike regular wages, which are taxed progressively based on your income and allowances, bonuses are taxed at a flat rate (11.70% in NY State). This can make the withholding seem disproportionate compared to your regular paycheck.
3. Local Taxes Add a Surprise
If you live in NYC or Yonkers, you're paying local taxes on your bonus that you might not have anticipated. For NYC residents, that's an extra 4.25% under the supplemental flat rate — a significant amount on top of the state and federal taxes.
4. FICA and Medicare Are Often Overlooked
Many employees forget that Social Security (6.20%) and Medicare (1.45%) apply to bonuses just like regular wages. That's an automatic 7.65% deduction you can't avoid.
Real Example: $5,000 Bonus in NYC
This is where your $5,000 bonus actually goes:
- $2,720.00 — You get to keep this
- $585.00 — NY State tax
- $212.50 — NYC tax (supplemental flat rate)
- $1,100.00 — Federal tax
- $382.50 — FICA + Medicare
That leaves you with only 54.4% of your original bonus.
Can You Reduce Bonus Tax Withholding?
You have limited options to reduce withholding on your bonus:
- Adjust your Form IT-2104 (NY) or Form W-4 (federal): Increasing your allowances may reduce withholding on regular wages, but bonuses are subject to flat-rate withholding regardless of allowances. Use our NY IT-2104 withholding calculator to see how your allowances affect regular withholding.
- Check if your employer uses the aggregate method: If your bonus is paid with your regular wages, ask your employer if they're using the aggregate method — it often results in less withholding.
- Plan for the surprise: The best strategy is to expect the lower amount and budget accordingly. If you need the full bonus amount for a specific purpose, you may want to consider other financial options.
Important: The tax withheld from your bonus is an estimate. When you file your annual NY State and federal tax returns, your actual tax liability is calculated based on your total income. If too much was withheld, you'll get a refund. If too little was withheld, you'll owe the difference.
2026 Rate Updates: What's Changed This Year
As of January 1, 2026, the NY State supplemental wage withholding rate remains at 11.70%. This rate has been in effect since 2022 (per 20 NYCRR §171.4), while local taxes and federal rates have seen adjustments in recent years.
- NY State supplemental rate: 11.70% (unchanged from 2025)
- NYC resident supplemental rate: 4.25% (unchanged)
- Yonkers resident supplemental rate: 1.95975% (unchanged)
- Yonkers nonresident rate: 0.50% (unchanged)
- Federal supplemental rate (up to $1,000,000): 22% (unchanged)
- Federal supplemental rate (excess above $1,000,000): 37% (unchanged)
- Social Security wage base limit: $184,500 (up from $176,100 in 2025)
Sources: NYS-50-T-NYS (1/26), NYS-50-T-Y (1/26), IRS Publication 15-T (2026), Social Security Administration (2026)
Why This Page Is Different From Every Other Calculator
Most supplemental wage calculators are generic. They give you a number and move on. This one is built differently — for a simple reason: we know why you're here.
You're here because you got a bonus or commission, saw your pay stub, and thought: "Wait... where did all my money go?"
We built this page to answer that question — with actual numbers, actual rates, and actual examples that show you exactly what's happening.
NYC & Yonkers Included
Most calculators ignore local taxes. We don't. You get the full picture.
Real Examples, Real Numbers
No abstract formulas. You see exactly how every dollar is calculated.
Flat Rate vs Aggregate
We show you both methods so you understand why your employer chose one over the other.
2026 Rates, Verified
We track official sources so you can trust the numbers. Updated for 2026.
The Real Cost of Your Bonus: A Closer Look
Let's be honest — taxes on bonuses feel aggressive. A 45.60% combined withholding rate in NYC means you keep less than 55 cents on the dollar. That's not an exaggeration. That's the reality of how the system works.
Here's the full breakdown for a $5,000 NYC bonus:
- You get: $2,720.00
- NY State gets: $585.00
- NYC gets: $212.50
- Federal government gets: $1,100.00
- Social Security + Medicare get: $382.50
Each segment shows the percentage of your $5,000 bonus that goes to each entity.
What You Can Do About It
While you can't change the withholding rates, you can take these steps to manage your bonus expectations:
- Use this calculator before you receive your bonus — so you know what to expect.
- Check with your employer — ask whether they use the flat rate or aggregate method.
- Review your Form IT-2104 — make sure your withholding allowances are accurate for your situation.
- Plan your budget — assume ~45% withholding if you're in NYC, ~41% if you're elsewhere in NY State.
- Talk to a tax professional — if you have complex income or deductions, professional advice helps.
Frequently Asked Questions About NY Supplemental Wage Tax Withholding
Quick answers to the most common questions about bonus, commission, and severance tax withholding in New York.
The NY State supplemental wage withholding rate for 2026 is 11.70%. NYC residents also pay 4.25% (the NYC supplemental flat rate — separate from the graduated regular NYC income tax of 3.078%–3.876%), and Yonkers residents pay 1.95975% (nonresidents pay 0.50%). These rates are set by the NYS Department of Taxation and Finance and are verified in Publications NYS-50-T-NYS (1/26) and NYS-50-T-Y (1/26).
Multiply your supplemental wage amount by 11.70% for NY State tax. If you live in NYC, add 4.25%. If you live in Yonkers, add 1.95975% (or 0.50% if nonresident). Then add federal tax (22% on up to $1,000,000; 37% only on any excess above $1,000,000) and FICA/Medicare (7.65%). Use the calculator above to get an instant estimate.
The flat rate method applies a fixed 11.70% directly to your supplemental wage. The aggregate method combines your supplemental wage with regular wages for the pay period, calculates withholding on the total, then subtracts the tax on regular wages alone. The aggregate method usually results in lower withholding on your bonus but is only used when the bonus is paid with regular wages.
Yes. NYC residents must pay 4.25% on all supplemental wages, including bonuses, commissions, and severance pay. This is the NYC supplemental flat rate — a simplified rate applied to supplemental payments. It is separate from the graduated NYC income tax (3.078%–3.876%) that applies to regular wages. The supplemental rate appears as a separate line item on your pay stub.
Yonkers residents pay 1.95975% on supplemental wages under the optional flat rate withholding method per Publication NYS-50-T-Y (1/26). This is structurally a 16.75% surcharge on the calculated NY State income tax — applying 16.75% to the 11.70% state supplemental rate yields approximately 1.96%. The 1.95975% flat rate is the officially sanctioned simplified shortcut for withholding on separately paid supplemental wages. Nonresidents who earn wages from Yonkers sources pay 0.50%.
Bonuses and other supplemental wages are taxed at a flat rate of 11.70% in NY State, plus applicable local taxes. Regular wages are taxed progressively based on your total income and withholding allowances. The flat rate can seem higher because it doesn't consider your filing status or allowances.
For a NYC resident, a $5,000 bonus results in approximately $2,720 take-home after all withholding: NY State (11.70%), NYC supplemental flat rate (4.25%), federal (22%), and FICA/Medicare (7.65%). Outside NYC, a $5,000 bonus results in about $2,932.50 take-home. Use the calculator above for your specific numbers.
You can adjust your Form IT-2104 (NY) or Form W-4 (federal) to change your overall withholding. However, supplemental wages are subject to mandatory flat-rate withholding under the percentage method. Changing your allowances won't affect the flat rate applied to your bonus.
If your employer fails to withhold the correct NY supplemental tax, you may owe the unpaid amount when you file your NY State tax return. You may also be subject to penalties and interest. If you believe your employer is not withholding correctly, review your pay stubs and contact the NYS Department of Taxation and Finance for guidance.
The official NY withholding tables are published in Publication NYS-50-T-NYS (1/26) for NY State, NYS-50-T-Y (1/26) for Yonkers, and NYS-50-T-NYC (1/26) for NYC — all available on the NYS Department of Taxation and Finance website at NYS-50-T-NYS, NYS-50-T-Y, NYS-50-T-NYC. The IRS also publishes Publication 15-T for federal withholding rules at irs.gov/publications/p15t.
Supplemental wages in NY include bonuses, commissions, severance pay, overtime (if paid separately), sales awards, and payments for accumulated sick leave or vacation pay when paid in addition to regular wages. Essentially, any payment that is not part of your regular salary or hourly wages qualifies.
Yes. The federal supplemental rate is 22% for wages up to $1,000,000 and 37% on any excess above $1,000,000. NY State uses 11.70%. These are separate taxes calculated independently. Both are withheld from your supplemental wage, which is why the total withholding can feel so high.
Under the flat rate method, filing status has no effect on supplemental wage withholding — all filers (single, married, and head of household) pay the same 11.70% NY State supplemental rate regardless of their filing status. Under the aggregate method, where supplemental wages are combined with regular wages for the pay period, head of household status applies through your Form IT-2104 allowances and affects how much total withholding is calculated on the combined amount. The flat rate method is the most common approach for separately paid bonuses and commissions.
Methodology: How This Calculator Works
This calculator uses the official 2026 withholding rates published by the NYS Department of Taxation and Finance and the IRS. Here's how each component is calculated.
Data Sources
- NY State (11.70%): NYS-50-T-NYS (1/26) — 2026 Withholding Tables
- NYC Resident supplemental flat rate (4.25%): NYS-50-T-NYC (1/26) — 2026 Withholding Tables (unchanged from 2025)
- Yonkers Resident supplemental rate (1.95975%): NYS-50-T-Y (1/26) — 2026 Withholding Tables (equivalent to 16.75% surcharge on state tax)
- Yonkers Nonresident (0.50%): NYS-50-T-Y (1/26) — 2026 Withholding Tables
- Federal (22% / 37%): IRS Publication 15-T (2026) — 22% applies up to $1,000,000; 37% applies only to the excess above $1,000,000
- FICA — Social Security (6.20%): Social Security Administration (2026 wage base: $184,500, up from $176,100 in 2025)
- Medicare (1.45%): Centers for Medicare & Medicaid Services (2026)
Calculation Logic
The calculator applies the flat rate method by default, multiplying your supplemental wage by each applicable rate. If you select the aggregate method, the calculator combines your supplemental wage with regular wages, calculates withholding on the combined total, then subtracts the withholding on regular wages alone.
All calculations are rounded to two decimal places. The results are estimates only and should be verified with your employer or tax professional.
Limitations
- This calculator does not account for additional deductions (401(k), health insurance, etc.)
- It does not include the additional 0.9% Medicare surtax for high earners (applies above $200,000 for single filers / $250,000 for married filing jointly)
- It does not include New York Paid Family Leave (PFL) contributions, which are withheld separately from employee wages at 0.432% of wages in 2026 (capped at an annual maximum contribution of $411.91). PFL deductions will appear on your pay stub alongside, but separate from, income tax withholding. Verify the current PFL rate at paidfamilyleave.ny.gov
- It does not include New York State Disability Benefits Law (DBL) contributions, which are also withheld separately
- State and local tax laws may change — always verify current rates at tax.ny.gov
- Individual circumstances may affect actual withholding
- The aggregate method uses the official NYS-50-T-NYS/NYC (1/26) annual withholding tables and varies by filing status, but assumes zero withholding allowances
- FICA + Medicare is applied at a flat 7.65% to the full supplemental amount; it does not stop Social Security withholding once the $184,500 annual wage base has been reached
Disclaimer: This calculator and all information on this page are for estimation and educational purposes only. They do not constitute tax, legal, or financial advice. Tax laws are complex and subject to change. Always consult a qualified tax professional for personalized guidance. AKCalc is not affiliated with the NYS Department of Taxation and Finance or the IRS.
Author: Shyraz Habib, Founder of AKCalc · Editorial review: August 2026 · About the author