Bonus Tax Calculator
Enter your bonus amount to see how much federal tax, Social Security, and Medicare will be withheld — using either the flat Percentage Method or the Aggregate Method.
Enter your bonus details
How this calculator works
Bonuses are considered “supplemental wages” by the IRS, so they’re taxed differently from your regular paycheck. Employers generally use one of two methods to withhold federal tax on a bonus.
Percentage Method
A flat 22% is withheld on bonuses up to $1,000,000 in a year, and 37% on any amount above that — regardless of your regular tax bracket.
Aggregate Method
Your bonus is combined with your regular wages for that pay period, annualized, and taxed through the 2026 brackets — then the extra withholding tied to the bonus is separated out.
FICA taxes
Social Security at 6.2% up to the $184,500 wage base, and Medicare at 1.45%, plus 0.9% above the additional Medicare threshold — applied the same way under both methods.
Frequently asked questions
Why is my bonus taxed at a flat 22%?
The IRS treats bonuses as supplemental wages. Most employers use the Percentage Method for simplicity, withholding a flat 22% federal tax regardless of your regular income tax bracket.
Will I get some of that tax back?
Possibly. If 22% is higher than your actual marginal tax rate, the extra withholding is reconciled as a refund (or a smaller balance due) when you file your annual tax return.
What’s the difference between the two methods?
The Percentage Method withholds a flat rate on the bonus alone. The Aggregate Method combines the bonus with your regular paycheck for that period, which can result in a higher or lower withholding depending on your regular income.
Does a bonus over $1 million get taxed differently?
Yes — under the Percentage Method, the first $1,000,000 of combined supplemental wages in a year is withheld at 22%, and everything above that is withheld at 37%.