Bonus Tax Calculator
See how your bonus is taxed using the flat percentage method (22% / 37%) vs the aggregate method. Compare federal withholding, Social Security, and Medicare taxes side by side for the 2025 or 2024 tax year.
| Tax Component | Flat Method (22%/37%) | Aggregate Method |
|---|---|---|
| Federal Tax | $2,200 | $2,200 |
| Social Security | $620 | $620 |
| Medicare | $145 | $145 |
| Total Tax | $2,965 | $2,965 |
| Net Bonus (Take-Home) | $7,035 | $7,035 |
Bonus Amount
$10,000
Flat Withholding Rate
22.00%
Aggregate Effective Rate
29.65%
Frequently Asked Questions
How are bonuses taxed in the US?
Bonuses are considered supplemental wages by the IRS and are subject to federal income tax withholding, Social Security tax (6.2%), and Medicare tax (1.45%). Your employer chooses either the flat percentage method or the aggregate method to determine how much federal income tax to withhold from your bonus.
What is the flat rate method for bonus tax?
Under the flat rate method, your employer withholds a flat 22% for federal income tax on bonuses up to $1 million. For bonus amounts exceeding $1 million, the excess is withheld at 37%. This method is simple and does not depend on your regular wages or filing status.
What is the aggregate method?
The aggregate method combines your bonus with your most recent regular paycheck and calculates withholding on the total as if it were a single payment. Your employer then subtracts the tax already withheld from your regular pay to determine the bonus withholding. This method can result in higher or lower withholding than the flat method depending on your income level.
Which bonus tax method results in less withholding?
It depends on your total income. If your marginal tax rate is below 22%, the aggregate method typically results in less withholding. If your marginal rate is above 22%, the flat method usually withholds less. Either way, your actual tax liability is determined when you file your return, and any over-withholding is refunded.