Are Bonuses Taxed Higher? 2025 Tax Rates
By calculating tax withholdings in your specific W-4 info, there’s typically a larger chance of using the proper tax rate. However, there’s nonetheless a chance that you just may owe money or obtain a refund at the end of the yr. In 2025, most bonuses are treated as supplemental earnings and taxed by the IRS at a flat 22% fee. The last tax you owe may be larger or decrease relying on your complete income and tax bracket. Bonuses are additionally topic to Social Security and Medicare taxes, which cut back the amount you are taking house. Because tax guidelines can change, you need to sustain with current laws to raised handle your finances.