Systems, apparatuses, and methods for calculating multi-pass histograms for palette table derivation include an encoder that calculates a first histogram for a first portion of most significant bits (MSBs) of pixel component values of a block of an image or video frame. Then, the encoder selects a given number of the highest pixel count bins from the first histogram. The encoder then increases the granularity of these selected highest pixel count bins by evaluating one or more additional bits from the pixel component values. A second histogram is calculated for the concatenation of the original first portion MSBs from the highest pixel count bins and the one or more additional bits, and the highest pixel count bins are selected from the second histogram. A palette table is derived based on these highest pixel count bins selected from the second histogram, and the block is encoded using the palette table.