Net Bonus
$7,035
Take-Home Rate
Total Tax
$2,965
Withholding Rate
29.65%
Federal Withholding
$2,200
Summary
On a $10,000 bonus with $75,000 salary, the flat rate method withholds $2,965 (29.65%), leaving you $7,035 net.
The flat rate method withholds a fixed 22% on bonuses up to $1 million. Above $1M, the excess is withheld at 37%. This is the most common method employers use.
The aggregate method combines your bonus with your regular pay for the pay period, calculates tax on the total using marginal brackets, and subtracts what was already withheld on your salary. This can result in higher or lower withholding depending on your income level.
Both methods produce the same withholding at your income level.
Recommended: The flat method results in lower withholding for your situation, saving you $0 in upfront tax.
Remember: bonus withholding is not a separate tax rate. Both methods are just withholding approaches — your actual tax liability is determined when you file your return. You may get a refund or owe the difference.
Flat vs Aggregate Method
Method Comparison
6 rows
| Item | Flat Method | Aggregate Method |
|---|---|---|
| Federal Withholding | $2,200 | $2,200 |
| Social Security | $620 | $620 |
| Medicare | $145 | $145 |
| Additional Medicare | $0 | $0 |
| Total Tax on Bonus | $2,965 | $2,965 |
| Net Bonus | $7,035 | $7,035 |
Withholding is not your final tax liability. Both methods are approaches to estimate withholding — your actual tax is determined on your return. Not tax advice.