🇺🇸 United States · 2025

Bonus Tax Calculator

Employers can withhold on bonuses using either the flat 22% Percentage Method, or the Aggregate Method that combines it with your regular paycheck. Try both.

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Enter your bonus amount and click "Calculate" to see estimated withholding.

Two Methods, Two Different Withholding Amounts

Most people don't realize the IRS allows employers to choose either of two methods for withholding on a bonus — and which one your employer picks can noticeably change how much lands in your account.

MethodHow It Works
Percentage MethodA flat 22% is withheld on the bonus (37% on amounts over $1 million in a year), regardless of your actual tax bracket. Simple, and the most common approach for bonuses paid on a separate check.
Aggregate MethodThe bonus is added to your regular paycheck for that pay period, and withholding is calculated on the combined total using standard graduated tables — as if it were one larger regular paycheck.

Which One Results in More Withholding?

It depends on your income level. If your regular marginal tax rate is below 22%, the Percentage Method typically over-withholds compared to the Aggregate Method. If your marginal rate is above 22% (common for higher earners), the Aggregate Method can actually withhold more, since the combined paycheck may push part of the income into a higher bracket for that pay period.

Remember: Withholding ≠ Final Tax

Whichever method your employer uses, it's just an estimate collected upfront — not your final tax bill. Your bonus is ultimately taxed as ordinary income, mixed in with your regular wages, at whatever your actual marginal rate works out to be for the year. If 22% withholding turns out to be more than your real rate, you get that difference back as part of your refund.

Related Tools

Withholding Tax Calculator →
Estimate your regular paycheck withholding
Tax Refund Calculator →
See how over-withholding affects your refund
Federal Income Tax Calculator →
Your total annual tax liability

Frequently Asked Questions

Why is my bonus taxed so much more than my regular paycheck?+
It isn't actually taxed at a higher rate — it's withheld at a higher rate. Employers commonly withhold a flat 22% on bonuses regardless of your tax bracket, which is often more than your regular paycheck's withholding rate. Your actual tax on the bonus is determined by your total annual income when you file, and any over-withholding comes back as part of your refund.
What's the difference between the Percentage Method and Aggregate Method?+
The Percentage Method withholds a flat 22% on the bonus, separate from your regular paycheck. The Aggregate Method combines your bonus with your regular paycheck for that period and withholds based on the combined total using standard graduated withholding tables, which can result in a different withholding amount.
Which method will my employer use?+
Employers choose, and most large payroll systems default to the Percentage Method since it's simpler to administer. If your bonus is paid on a separate check from your regular pay, it's almost certainly the Percentage Method.
Can I get back over-withheld bonus tax?+
Yes. Withholding is not your final tax — if 22% withholding on your bonus turns out to be more than your actual marginal tax rate, the excess is refunded (or reduces your balance due) when you file your annual return.
NOTE

Assumes the Social Security wage base has not yet been reached this year. Both methods are simplified estimates — actual payroll systems may apply additional nuances. Your final tax on the bonus is determined at filing time based on total annual income.