Bonus tax withholding
The flat method and the aggregate method, struck side by side — so you know which one hit your check.
FICA breakdown: $310.00 Social Security + $72.50 Medicare.
Withholding isn't your tax bill
Both columns above are withholding estimates — deposits against a tax bill that isn't finalized until your whole year's income is added up. A bonus isn't taxed at a special higher rate; it's ordinary income like the rest of your pay. The flat 22% (or the steeper aggregate figure) is just how much gets held back today, not necessarily what you actually owe on it once every bracket, deduction, and credit for the year is counted.
flat: 22% up to $1M, 37% above aggregate: (regular + bonus) annualized through brackets, minus regular alone Assumptions on the counter
- Federal withholding only — state withholding on bonuses varies by state and isn't modeled here.
- The aggregate figure approximates the IRS's annualized-wage method; your employer's software may round differently.
- Assumes the bonus and one regular check land in the same pay period, per the aggregate method's own rule.
Questions people ask
Why is my bonus taxed so much higher than my paycheck?
It usually isn't a higher rate — it's a flat one. Most employers withhold a flat 22% federal rate on a bonus paid on its own check (37% on any amount over $1 million), regardless of your actual bracket. That flat rate is often higher than what a regular paycheck withholds, so the bonus looks harder-hit even though your real year-end tax liability doesn't care which paycheck the dollars arrived on.
What's the difference between the flat and aggregate methods?
The flat (percentage) method withholds a fixed 22% on the bonus alone. The aggregate method folds the bonus into one regular paycheck and withholds as if that combined, larger amount were your normal pay every period — which usually pushes more of it into higher brackets and withholds more, especially for a big bonus on top of a modest regular check.
Will I get some of it back?
Possibly. Withholding is a deposit against your actual tax bill, not the bill itself — your bonus is just ordinary income at filing time, taxed at your real marginal rate on your full year. If 22% (or the aggregate figure) withheld more than your actual bracket, the difference comes back as part of your refund.