Bonus Tax
TaxesThe tax treatment of supplemental wages like bonuses, which are often withheld at a flat 22% federal rate.
Example
Example: On a $75,000 salary, understanding bonus tax could save you hundreds or thousands at tax time. For instance, if you are in the 22% marginal bracket, knowing how bonus tax works helps you make smarter decisions about deductions, credits, and withholding. Check your tax picture with our income tax calculator.