Employee Tax Guidelines

2026 Tax Limits

Employee withholding rates and wage base limits.

Tax Type	Tax Rate	Taxable Wage Base Limit
Federal Income Tax Withholding (Supplemental Wages)	22.00%*	No Limit
Social Security	6.20%	$184,500
Medicare	1.45%	No Limit
Additional Medicare	0.90%	$200,000

 

* The 22% federal rate shown above applies to supplemental wages that are separately identified, such as bonuses. Regular federal income tax withholding is based on Form W-4 elections and IRS withholding tables.

For supplemental wages exceeding $1 million in a calendar year, the federal withholding rate on the excess is 37%.

 

IRS Reference

Federal income tax withholding tables and methods are available in IRS Publication 15: https://www.irs.gov/publications/p15.

 

_{Last updated 3/2026.}