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FREE TOOL · TAXES

Commission Tax Calculator

See what comes out of a commission check, line by line, and what actually lands in your account. 2026 IRS rates.

Example numbers are filled in. For W-2 employees whose employer withholds commissions at the IRS flat rate.

Estimated take-home$7,035
Commission check
$10,000.00
Federal income tax (22% flat)
−$2,200.00
Social Security (6.2%)
−$620.00
Medicare (1.45%)
−$145.00
Estimated take-home
$7,035.00

About 29.7% of this check is withheld. Withholding is an estimate of your tax, not the final bill: you settle up when you file. Not tax advice.

How the commission tax calculator works

It uses the 2026 rates in IRS Publication 15: federal income tax withheld at 22% on supplemental wages (37% on supplemental wages above $1 million for the year), Social Security at 6.2% up to the $184,500 wage base, Medicare at 1.45%, and an extra 0.9% Medicare on wages over $200,000. A traditional 401(k) contribution lowers income tax withholding but not Social Security or Medicare. State and local rates vary, so you enter yours.

Your employer may combine your commission with your regular pay and withhold on the total (the “aggregate method”). In that case your numbers will differ.

Plan your number after taxes

Your income goal is a take-home number, so set your targets after tax. Work out the deals behind it with the sales goal calculator.

Frequently asked questions

How much tax is taken out of a commission check?

When your employer pays commission separately from your regular pay and uses the flat-rate method, federal income tax is withheld at 22% for 2026. Social Security (6.2%) and Medicare (1.45%) come out too, plus any state and local tax. That's why a commission check often feels taxed harder than your paycheck.

Are commissions taxed at a higher rate?

No. Commissions are taxed as ordinary income when you file. The 22% is only a withholding rate. If it's more than your actual tax rate, you get the difference back at filing; if it's less, you owe it.

What happens over $1 million?

Supplemental wages paid to an employee over $1 million in a calendar year must be withheld at 37% federal, according to IRS Publication 15. The calculator applies 37% to the part of your check above that line.

When does Social Security stop coming out?

Social Security tax applies only up to the wage base: $184,500 in 2026. Once your pay for the year passes it, that 6.2% stops. Medicare has no cap, and an extra 0.9% is withheld on wages over $200,000.

Does this work for 1099 contractors?

No. If you're paid on a 1099, nothing is withheld and you pay self-employment tax plus income tax yourself, usually through quarterly estimated payments. Talk to a tax professional about your situation.

Is this tax advice?

No. It's an estimate of withholding under the IRS percentage method. Employers can use other methods, and your actual tax depends on your whole year. Check with a tax professional.

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