Commission Tax Calculator 2026
Estimate how much federal income tax, Social Security, Medicare and state tax may be withheld from a commission check, then see what the commission adds to your tax for the year. Built for W-2 employees paid commissions separately from, or identified separately on, their regular paycheck.
This estimates the flat supplemental-wage method from IRS Publication 15 (2026) with sourced state rates. Your employer may use the aggregate method instead, which can withhold a different amount. It is not tax advice.
Your commission
Salary or hourly wages plus commissions already paid this year. Used for the annual tax comparison and payroll tax limits.
Used only for the $1,000,000 federal threshold where withholding rises to 37%.
Estimated commission check after withholding
$3,187.50
$1,813 withheld from $5,000 gross
- Federal income tax (22% flat method)
- $1,100.00
- Social Security (6.2%)
- $310.00
- Medicare (1.45%)
- $72.50
- California supplemental withholding (6.6%)
- $330.00
- Total withheld
- $1,812.50
Estimated added annual tax from this payment
- Federal income tax (top bracket 12%)
- $600.00
- Social Security and Medicare
- $382.50
- California income tax
- $338.36
- Payment after estimated annual tax
- $3,679.14
Modeled withholding is about $492 above the estimated added annual tax. This difference can affect your overall tax balance; it is not a refund or amount-due forecast.
How commissions are taxed in 2026
For an employee, a commission is wages. It goes on your Form W-2, it is subject to Social Security (6.2% until your wages for the year reach $184,500) and Medicare (1.45%), and it is added to your other income when your return is calculated. There is no separate commission tax rate on the return.
What differs is withholding. IRS Publication 15 lists commissions as supplemental wages. If your employer pays a commission separately, or shows it separately from regular wages on the same check, and withheld income tax from your regular wages, it can choose one of two methods:
- Flat (optional) method: withhold 22% federal income tax on the commission, ignoring your W-4. Above $1,000,000 of supplemental wages in the year, 37% is mandatory.
- Aggregate method: add the commission to your regular wages for the period, figure the withholding on the total with the normal tables, and subtract what was already withheld from the regular wages.
Commissions paid together with regular wages and not identified separately are simply withheld as regular pay. This calculator shows the flat method because it is the one most employers use for a separate commission check; the second result card shows what the commission actually adds to your annual tax at 2026 brackets.
Commission paycheck vs. annual tax
If your top federal bracket is 10% or 12%, the flat 22% usually withholds more than the commission adds to your tax, and the difference can come back as part of a refund. In the 24% bracket and above, flat withholding can fall short, so a large commission year can leave a balance due. Raising the extra withholding on your W-4, or making an estimated payment, closes the gap. Our W-4 calculator can help you size that amount.
Worked example: $4,000 commission in California
- Federal income tax at the flat 22%: $880. Social Security and Medicare: $248 and $58.
- California withholds 6.6% on supplemental wages other than bonuses and stock options, so state withholding is $264. The check after withholding is $2,550.
- With $52,000 of other wages as a single filer, the commission adds about $480 of federal income tax (top bracket 12%), so you keep about $2,974 after annual tax.
State commission withholding rates for 2026
States whose 2026 official withholding guide sets a flat rate that covers commissions or all supplemental wages. Where a state's flat rate is written only for bonuses, or no flat rate applies, the calculator estimates state tax from the state's brackets. Nine states do not tax wages.
Sources and limitations
Federal withholding follows IRS Publication 15 (2026), section 7. State rates come from each state's official guide linked above. The annual comparison uses the brackets and standard deductions on our methodology page and treats your base pay as already paid. It does not model the aggregate method, draws against commission, pre-tax deductions, credits or other income.
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Frequently asked questions
Are commissions taxed at 22% in 2026?
Commissions are supplemental wages. When an employer pays a commission separately from regular wages, or identifies it separately on the same check, and income tax was withheld from your regular wages this year or last year, it may withhold federal income tax at a flat 22%. Supplemental wages above $1,000,000 for the year are withheld at 37%. The employer may instead add the commission to regular wages and use the withholding tables (the aggregate method).
Why is so much tax taken out of my commission check?
With the flat method, 22% federal withholding plus 6.2% Social Security and 1.45% Medicare takes 29.65% before state tax. If your employer uses the aggregate method instead, a large commission added to one pay period can look like a very high annual salary to the withholding tables, so more may be withheld. Withholding is a prepayment; your actual tax is figured on your return.
Are commissions taxed differently from salary?
No. On your tax return, commissions are wages and are taxed exactly like salary at your bracket rates. Only the withholding method can differ, because employers may treat a separately paid commission as supplemental wages.
Is a commission taxed like a bonus?
Federally, yes: both are supplemental wages with the same optional flat withholding rate. Some states differ. California withholds 10.23% on bonuses and stock options but 6.6% on other supplemental wages, which include commissions. Where a state's official rule mentions only bonuses, this calculator estimates state tax from the state's brackets instead.
Do commissions count toward the Social Security wage base?
Yes. Commissions paid to employees are wages for Social Security and Medicare. Social Security stops once your wages for the year reach $184,500; Medicare has no limit, and employers withhold an extra 0.9% on wages above $200,000 in a calendar year.
Does this work for 1099 commission income?
No. Commissions paid to independent contractors are not wages, so no income tax or FICA is withheld; you pay self-employment tax and estimated tax yourself. Use the 1099 tax calculator for that case.