Learn / Bonus withholding
Bonus tax withholding: percentage vs aggregate method
A bonus check often has a bigger chunk withheld than a regular paycheck of the same size. That's not a mistake — the IRS treats bonuses as “supplemental wages” with their own withholding rules.
The percentage method (most common)
For supplemental wages — bonuses, commissions, severance — under $1 million in a calendar year, employers are generally allowed to withhold a flat 22% for federal income tax, regardless of your regular tax bracket. This is the method most employers use because it's simple to apply.
If your regular income tax bracket is lower than 22%, this flat rate can over-withhold on the bonus itself — that extra gets reconciled as part of your refund when you file, not lost.
The aggregate method
Some employers instead add the bonus to your most recent regular paycheck and withhold as if that combined total were your normal pay for the period. Because the combined amount looks larger, it usually pushes more of that specific check into a higher withholding bracket — which is why aggregate-method bonuses often feel more heavily taxed than the 22% flat rate.
Which method will your employer use?
It's the employer's choice, not yours — check your pay stub or ask HR/payroll which method they use. Most standard bonus checks use the percentage method.
It's still just withholding, not your final tax
Like overtime, bonus withholding is an estimate, not your actual liability. A flat 22% federal withholding doesn't mean you owe 22% — your real tax on that income is set by your total annual taxable income and the same 2026 brackets everything else uses. Any difference between what was withheld and what you actually owe shows up when you file.