Bonus Tax Calculator 2025 β Percentage vs Aggregate Method
Calculate how much of your bonus you keep after tax. Compare the flat 22% percentage method vs aggregate method for federal withholding.
Withholding Method Comparison
| Method | Federal Withheld | Bonus Take-Home | Notes |
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Bonus Tax Computation (Percentage Method)
How Bonus Taxes Work
Your bonus is taxed as ordinary income β it's added on top of your regular wages. The IRS allows two withholding methods, but your actual annual tax bill is the same regardless:
Percentage Method: Employer withholds 22% flat for bonuses up to $1M (37% above). Simple and common.
Aggregate Method: Employer adds the bonus to your regular paycheck wages and calculates withholding on the combined amount. Results in higher withholding if your marginal rate exceeds 22%.
The Formula
Aggregate Method: Withholding = Tax on (annualized regular pay + bonus) β Tax on annualized regular pay
FICA = Bonus Γ 7.65% (up to SS wage base)
State Tax = Bonus Γ State Rate
Bonus Take-Home = Bonus β All Withholding
Example
Percentage method: Federal = $10,000 Γ 22% = $2,200 | State = $500 | FICA = $765
Bonus take-home: $10,000 β $2,200 β $500 β $765 = $6,535
Sarah's actual marginal rate is 22%, so the percentage method withholding matches her true liability exactly.
Method Comparison & 401k Strategy
Compare withholding methods and see how 401k contributions reduce bonus taxes
Detailed comparison showing what each method withholds and whether you'd owe or receive a refund.
| Item | Percentage (22%) | Aggregate Method | Difference |
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See how contributing your bonus to a 401(k) reduces your tax bill.
| 401(k) Contribution | Taxable Bonus | Federal Tax (22%) | Take-Home Cash |
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