Full breakdown
| Flat 22% method | Aggregate method | |
|---|---|---|
| Federal income tax withheld | ||
| Social Security | ||
| Medicare | ||
| State tax | ||
| Bonus you keep |
Withholding is not your final tax. Any difference is settled when you file your return.
Your result will appear here.
How bonuses are taxed
The IRS treats a bonus as supplemental wages. Your employer picks one of two ways to withhold federal tax.
Flat method. If the bonus is paid separately, the employer withholds 22% federal tax. Any supplemental wages above $1 million in a year are withheld at 37%.
Aggregate method. If the bonus is added to a regular paycheck, the employer withholds as if the combined amount were one normal paycheck. Because the bigger paycheck is treated as if it repeats all year, this can take more or less than 22%, depending on your regular pay.
Both methods also take Social Security (6.2% up to the 2026 limit of $184,500), Medicare (1.45%, plus 0.9% on wages above $200,000) and any state tax.
Worked example
A single worker gets a $5,000 bonus and earns $2,500 every two weeks. With the flat method, federal withholding is $1,100 and Social Security plus Medicare is $382.50, so $3,517.50 is kept. With the aggregate method, federal withholding is about $1,150.54, so about $3,466.96 is kept.
More worked examples
All examples are for a single filer in a state with no income tax, unless a state rate is mentioned.
$10,000 bonus with a $4,000 monthly paycheck. Flat method: federal tax $2,200 and payroll tax $765, so you keep $7,035. Aggregate method: federal tax about $2,122.83, so you keep about $7,112.17.
$1,500 bonus with a $2,000 paycheck every two weeks. Flat method: federal tax $330 and payroll tax $114.75, so you keep $1,055.25. Aggregate method: federal tax about $274.23, so you keep about $1,111.02.
$5,000 bonus with 5% state withholding. State tax adds $250 on top of $1,100 federal tax and $382.50 payroll tax, so you keep $3,267.50 with the flat method.
Which method is better for you?
Neither changes your final tax for the year. They only change how much is withheld from the bonus check. The aggregate method can take less than the flat method when your regular pay is modest, as the $1,500 example shows, and more when the bonus is large next to your usual paycheck. Your employer picks the method, so the useful question is what appears on your pay stub.
Getting money back
If more tax was withheld than you owe for the year, the extra comes back as a refund when you file. If a bonus pushes part of your income into a higher bracket, only the part above the bracket line is taxed at the higher rate.
Common mistakes
- Treating 22% as the tax you finally pay. It is a withholding rate.
- Forgetting Social Security and Medicare, which come out of a bonus too.
- Leaving out state tax. Enter your state's withholding rate if it has one.
- Using this for supplemental wages above $1 million in a year, where a higher federal rate applies to the excess.
Questions
Why does my bonus feel taxed so much?
Withholding is often higher than the tax you finally owe on that money. If too much was withheld, you get it back as a refund.
Which method does my employer use?
It is the employer's choice. Ask payroll, or look at how the bonus appears on your pay stub.
Does this include 401(k) or other deductions?
No. It shows tax only.
Do I pay Social Security tax on a bonus?
Yes, until your wages for the year reach the 2026 limit of $184,500.
Is a bonus taxed twice?
No. It is taxed once. Withholding can look high, but it is credited against your tax when you file.
Sources and review
Last reviewed October 2026. The aggregate method follows the 2026 percentage method in IRS Publication 15-T, simplified for a Form W-4 with no adjustments.
- IRS Publication 15-T: federal income tax withholding methods
- IRS Publication 15: employer's tax guide
More calculators
- No tax on tips and overtime calculator to see how the new deductions lower your federal tax
- Self-employment tax calculator if you also have 1099 or freelance income