Calculate taxes on bonus income using aggregate and percentage methods with net bonus amount and effective tax rate.
A bonus can produce different paycheck withholding depending on whether payroll treats it separately or combines it with regular wages. This calculator compares the percentage and aggregate methods, then reports the estimated tax withheld, net bonus, and effective withholding rate for each result. The important distinction is that bonus withholding is not a separate final tax. The bonus remains part of annual wage income, and the amount ultimately owed is determined on the employee's income tax return.
For the percentage-method result, the bonus is treated as separately identified supplemental wages. Federal income tax withholding is calculated by applying the applicable supplemental withholding percentage directly to the eligible bonus amount. The displayed net bonus is the gross bonus less the withholding included in the calculation, while the effective rate expresses that withholding as a percentage of the gross bonus.
For the aggregate result, the calculator combines the bonus with regular wages for the relevant payroll period and calculates withholding on the combined payment. It then subtracts the withholding attributable to the regular wages alone. The difference is assigned to the bonus, so the result depends on regular pay, payroll frequency, and the withholding settings used for that paycheck.
The aggregate method calculates withholding on the combined regular wages and bonus, then assigns the increase over regular-wage withholding to the bonus. A larger combined paycheck can produce a larger incremental amount under payroll withholding tables. This does not mean the bonus is permanently taxed at a special higher income tax rate.
No. It estimates withholding from the bonus payment under the selected method and inputs. The actual federal income tax attributable to all wages is settled through the annual return. The paycheck can also differ because of payroll taxes, state or local rules, employer payroll settings, rounding, or deductions outside this calculation.
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