Amount of Last Paycheck
Amount of Bonus
Total Paycheck and Bonus
Annual Income Tax Rate
There are two methods for calculating the taxes on your bonus:
the Aggregate method and the Percentage method.
the Aggregate method and the Percentage method.
There are two methods for
calculating the taxes on your
bonus: the Aggregate method
and the Percentage method.
calculating the taxes on your
bonus: the Aggregate method
and the Percentage method.
Aggregate Method
Tax Withheld
Tax Withheld
Percentage Method
Tax Withheld
Tax Withheld
Aggregate Method Tax Withheld
If your employer uses the
aggregate method, your bonus
may be taxed at a higher rate
since it is based on both your
bonus and most recent
paycheck combined.
aggregate method, your bonus
may be taxed at a higher rate
since it is based on both your
bonus and most recent
paycheck combined.
Percentage Method Tax Withheld
Most employers use the
percentage method. If your
does use this method, your
bonus will be taxed at a
flat 22% rate.
percentage method. If your
does use this method, your
bonus will be taxed at a
flat 22% rate.
If your employer uses the
aggregate method, your bonus
may be taxed at a higher rate
since it is based on both your
bonus and most recent
paycheck combined.
aggregate method, your bonus
may be taxed at a higher rate
since it is based on both your
bonus and most recent
paycheck combined.
Most employers use the
percentage method. If your
employer does use this method,
your bonus will be taxed at a
flat 22% rate.
percentage method. If your
employer does use this method,
your bonus will be taxed at a
flat 22% rate.
Source: IRS, 2018
