Stipend Tax Calculator (2026)
Check whether your stipend is taxed under IRS rules, then see what a taxable one leaves you after federal withholding, Social Security, Medicare and state tax.
Step 1. Is your stipend taxed?
Pick the setup that matches how your employer pays or reimburses you.
A payment you do not have to substantiate is treated as paid under a nonaccountable plan. It is wages, treated as supplemental wages, and subject to income, Social Security and Medicare taxes.
IRS source: IRS Publication 15 (2026) (Section 5, Reimbursements and Other Expense Allowances: Nonaccountable plan)
This one is taxed, so run the numbers below.
Step 2. What a taxable stipend leaves you
| Line | Amount |
|---|---|
| Gross stipend | $1,000.00 |
| Federal withholding at the flat 22% supplemental rate | -$220.00 |
| Social Security (6.2%) | -$62.00 |
| Medicare (1.45%) | -$14.50 |
| Additional Medicare (0.9% over $200,000) | -$0.00 |
| State tax (your rate) | -$0.00 |
| Paycheck amount | $703.50 |
Which stipend setups are taxed
The short version: how the money reaches you matters more than what it is called. Cash you do not have to account for is wages. A benefit the tax code names, or a reimbursement that follows the accountable plan rules, is not.
| Setup | Federal treatment | Limit |
|---|---|---|
| Cash stipend added to your pay, no receipts needed | Taxable wages | |
| Reimbursement of business expenses with receipts (accountable plan) | Not taxed | |
| Gift card or other cash equivalent | Taxable wages | |
| Tuition, books and fees under a written educational assistance plan | Not taxed up to the limit | $5,250 per year |
| Job-related course, certification or conference paid by the employer | Not taxed if conditions are met | |
| Gym or wellness-club membership you pay for, reimbursed or covered by a stipend | Taxable wages | |
| Use of an on-premises gym your employer operates | Not taxed | |
| Commuter benefits (transit pass or parking) | Not taxed up to the limit | $340 per month for transit and $340 per month for parking in 2026 |
| Dependent care assistance (employer plan or dependent care FSA) | Not taxed up to the limit | $7,500 per year ($3,750 if married filing separately) for 2026 |
| Employer contribution to your HSA | Not taxed up to the limit | $4,400 self-only or $8,750 family in 2026, including your own contributions |
| Pay you redirect into a health FSA | Not taxed up to the limit | $3,400 of salary reduction for plan years beginning in 2026 |
| Work equipment the employer buys and owns for your job | Not taxed if conditions are met |
What the calculator assumes
- You are a W-2 employee and the stipend is paid as a separate supplemental payment, so federal withholding is the flat 22% rate. If your employer adds it to a regular paycheck, withholding follows your W-4 and the paycheck amount will differ.
- Social Security applies only up to the 184,500 wage base, counting your other wages first. Additional Medicare of 0.9% applies to wages over $200,000.
- Your state withholds at the rate you enter. State rules can differ from the federal rules used here.
- It does not cover independent contractors, graduate fellowships or scholarships, or the employer's side of payroll tax. For fellowships see IRS Topic 421.
If your stipend is for education, run it through the tuition reimbursement calculator, which handles the $5,250 limit directly. To keep your own paper trail for an accountable-plan reimbursement, the expense report generator builds the receipts list your employer will ask for.
Sources and date checked
Every number and rule on this page comes from the pages below, read on October 14, 2026. If a source changes, this page can be out of date until it is rechecked.
- IRS Publication 15 (2026), Employer's Tax Guide
Accountable and nonaccountable plans (section 5), the flat 22% and 37% supplemental wage rates (section 7), and the 2026 Social Security wage base and Medicare rates.
- IRS Publication 15-B (2026), Employer's Tax Guide to Fringe Benefits
Which benefits are excluded from wages: educational assistance, working condition benefits, athletic facilities, de minimis benefits, dependent care, HSAs and cafeteria plan FSAs.
- Rev. Proc. 2025-32 (2026 inflation adjustments, section 125 and 132(f))
The permanent $5,250 education exclusion, the $340 monthly commuter limits and the $3,400 health FSA limit for 2026.
Not tax advice. This page is general information built from IRS publications, not advice for your situation. Plan rules, state law and your own facts can change the answer. Confirm with your plan administrator or a tax professional before you act.
Frequently asked questions
Are employer stipends taxable?
A cash stipend added to your pay with no receipts required is taxable wages. IRS Publication 15 treats a payment you do not have to substantiate as paid under a nonaccountable plan, and those payments are subject to income, Social Security and Medicare tax. Reimbursements that meet the accountable plan rules, and certain benefits such as educational assistance up to $5,250, commuter benefits and employer HSA contributions, are not taxed up to their limits.
How much tax comes out of a stipend?
On a W-2 paycheck, employers often withhold federal income tax on a separately paid stipend at the flat 22% supplemental rate (37% once supplemental wages pass $1 million in a year). Add Social Security at 6.2% up to a 184,500 wage base, Medicare at 1.45%, and your state's tax. The flat 22% is withholding, not your final tax: your actual federal tax is set by your bracket when you file.
What is the difference between a stipend and reimbursement?
A stipend is a fixed amount paid to you, usually without proof you spent it on anything. A reimbursement pays you back for a specific expense after you submit a receipt. Under IRS rules the reimbursement can avoid tax if it meets the accountable plan tests: a business connection, substantiation within a reasonable time, and returning any excess. A fixed cash stipend generally cannot.
Can a stipend be tax-free?
Yes, if it is a benefit the tax code lets employers exclude: up to $5,250 a year of educational assistance, up to $340 a month each for transit and parking in 2026, dependent care assistance up to $7,500, employer HSA contributions within the limit, and job-related working condition benefits. Cash and gift cards never qualify as de minimis benefits, no matter how small.
Will I get a 1099 for my stipend?
If you are an employee, a stipend paid as wages is reported on your W-2. Independent contractors are paid differently and owe self-employment tax, which this calculator does not cover. If your payer is not your employer, ask a tax professional how it is reported.
Does a stipend change my take-home pay compared with a raise?
The tax rules are largely the same for the same dollars of wages, so a taxable stipend and an equal raise leave you in a similar place. The difference is in withholding: a separate stipend payment is often withheld at the flat 22%, which can be too much or too little for your bracket, and you settle up when you file. The calculator shows that gap.
Related tools and guides
- Tuition reimbursement calculatorThe $5,250 tax-free education limit, applied to your numbers.
- Commuter benefits calculatorPre-tax transit and parking, up to $340 a month each in 2026.
- Stipend matcherFind what your stipend type can be spent on.
- HSA contribution limit calculatorEmployer HSA money is tax-free up to the 2026 limit.
- FSA calculatorPre-tax health FSA elections and their deadlines.
- Expense report generatorThe receipts that make a reimbursement an accountable-plan one.
- Are employee stipends taxable?The plain-English explainer behind this calculator.
- Is a learning stipend taxable?The same question for learning and development money.