Bonus Tax Calculator
Calculate taxes on bonuses using percentage method or aggregate method
About this calculator
The Bonus Tax Calculator helps you determine the exact amount of taxes that will be withheld from your bonus payment. Bonuses are taxed differently than regular wages, and employers can use either the percentage method (flat 22% federal rate) or aggregate method (combined with regular pay). This calculator shows you both scenarios so you can understand your net bonus amount and plan your finances accordingly, ensuring no surprises when you receive your bonus paycheck.
How to use
Enter your bonus amount, regular salary, and pay frequency. Select your filing status and state for accurate calculations. The calculator will show tax withholdings using both the percentage method and aggregate method, displaying your net bonus amount after federal, state, and payroll taxes are deducted.
Frequently asked questions
What's the difference between percentage and aggregate methods?
Percentage method taxes bonuses at a flat 22% rate, while aggregate method combines your bonus with regular pay and taxes at your normal rate.
Which method will my employer use?
Employers typically use the percentage method for bonuses under $1 million, but they can choose either method based on their payroll preferences.
Are bonuses taxed higher than regular income?
Bonuses may have higher withholding rates, but they're taxed as ordinary income on your annual tax return at your marginal rate.