Federal Bonus Tax Rate 2024. If your total bonuses are higher than $1 million, the first $1 million gets taxed at 22%, and every dollar over that gets taxed at 37%. 20.5% on taxable income between.
Find the current tax rates for other filing statuses. Your supplemental wages are subject to federal income and employment taxes.
20.5% On Taxable Income Between.
Bonuses are taxed at ordinary income rates but the government may initially withhold more money than usual.
Similar To Salaries, Employee Bonuses Are Subject To Taxes—Specifically, A Bonus Tax.
When using the percentage method, employers withhold 22% for taxes on the first $1m and an additional 37% on any portion of the bonus over $1m.
How Bonus Tax Withholding Works.
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Last Updated On April 3, 2023.
If your total bonuses are higher than $1 million, the first $1 million gets taxed at 22%, and every dollar over that gets taxed at 37%.
Single Married (Joint) Married (Separate) Head Of Household Widower.
15% on taxable income up to $55,867.
Find The Current Tax Rates For Other Filing Statuses.
