Bonus Tax in New Hampshire (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 New Hampshire state layer applies.

New Hampshire levies no state income tax, so only the federal 22% supplemental withholding and FICA come out of a bonus. New Hampshire levies no tax on earned wages, and its Interest & Dividends Tax was fully repealed effective January 1, 2025 (House Bill 2, 2023) - so as of 2025 the state has no individual income tax of any kind. No state or local sales tax either.

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

Worked example: a $5,000 bonus in New Hampshire

Federal withholding (22%)$1,100
FICA (Social Security + Medicare)$383
New Hampshire 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
New Hampshire 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 New Hampshire: New Hampshire 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 New Hampshire have a flat bonus withholding rate?

It depends on the state. The breakdown above shows New Hampshire'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 · New Hampshire: NH Department of Revenue Administration - Repeal of NH Interest and Dividends Tax Now in Effect. Rates current as of July 16, 2026. Annual-liability estimates, not payroll withholding — see methodology.