Dec 12, 2025 · This guide explains what bonuses are, how the bonus tax rate works, and the steps you can take to help understand and navigate the tax impact of this extra income.

Aug 20, 2025 · Just like with a regular paycheck, your employer must withhold taxes from your bonus. Here's how bonuses are taxed, and how to reduce your tax bill.

Nov 7, 2025 · The federal bonus tax withholding rate is typically 22%. However, employers could instead combine a bonus with your regular wages as though it’s one of your usual …

The bonus income tax rate is 22%. Any portion over $1 million is taxed at 37%. Employers must also withhold Medicare and Social Security taxes from bonuses.

Sep 9, 2025 · The federal tax withholding rate for bonuses is 22% for bonuses under $1 million and 37% for bonuses over $1 million. However, the actual amount deducted from your …

Jul 11, 2025 · Understanding how bonuses are taxed can be complicated due to the withholding laws. Learn how they are taxed, and the 2025 bonus tax rates, with Jackson Hewitt.

Jan 22, 2025 · The IRS specifies a flat withholding rate of 22% for bonuses. Additional withholdings may apply for Social Security, Medicare, and state taxes, depending on your …

Jul 2, 2025 · Bonuses are a popular way to reward your team, though the tax implications can get complex. Here's a step-by-step guide on 2026 tax rates, and how to simplify the process so …

Nov 1, 2025 · The bonus tax rate varies based on the method your employer uses to calculate taxes on your bonus. Find out how much of your bonus will go to taxes, and learn how you can …

Nov 22, 2025 · Employers can determine income tax withholding on bonuses using either the aggregate method (adding the bonus to regular wages) or a flat rate of 22%. Your bonus is …