Bonus Tax Calculator

Bonuses are withheld at a flat 22% for federal income tax if your employer uses the percentage method (most common for separate bonus checks). However, the actual tax owed depends on your total annual income and tax bracket. Any over- or under-withholding is reconciled on your tax return.

The flat rate method withholds 22% of the bonus (simple). The aggregate method combines the bonus with your regular paycheck and calculates withholding on the total, which can result in higher withholding if it temporarily pushes you into a higher bracket.

For bonuses exceeding $1 million, the first $1 million is withheld at 22% and the amount above $1 million is withheld at 37% (the top federal rate). This is just withholding; actual tax owed depends on your total income.