Bonus Tax Calculator
Bonuses are taxed differently depending on whether your employer uses the percentage method (flat 22%) or the aggregate method (added to your paycheck). See exactly how much you'll keep.
Percentage method (flat 22%)
The IRS default for supplemental wages under $1M — simple flat withholding.
Aggregate method
Adds your bonus to your regular paycheck and calculates tax based on your actual income bracket.
Method comparison
Percentage (22%)
Aggregate
How this calculator works
Percentage method: The IRS treats supplemental wages (bonuses, commissions) as flat 22% federal withholding for amounts under $1M. FICA and state taxes are added on top.
Aggregate method: Your employer adds the bonus to your regular paycheck and calculates withholding on the combined amount. The difference between that and the regular paycheck withholding is the tax on your bonus. This often results in lower tax if you're in a bracket below 22%.
Frequently asked questions
Does my employer choose which method to use?
Yes. Most employers use the percentage method (flat 22%) for simplicity, but your employer can choose the aggregate method. You can't request a specific method.
Will my bonus be "double taxed"?
No. Bonuses are not taxed at a higher rate — they're treated as ordinary income. The "double tax" perception comes from the flat 22% withholding, which may be higher than your actual marginal rate. You'll get the difference back as a refund (or reduced withholding) when you file your return.
What's the 2024 bonus withholding rate?
The percentage method uses 22% for supplemental wages under $1M, and 37% for amounts over $1M. FICA (7.65%) is always added on top.
Are bonuses subject to state tax?
Yes. In most states, bonuses are taxed at the same rate as regular income. Some states have special rules for supplemental wages.
Is there a difference between a "bonus" and "commission"?
From a tax perspective, both are supplemental wages and treated the same way — flat 22% federal withholding or aggregate method.