What Rate Are Bonuses Taxed At 2025

What Rate Are Bonuses Taxed At 2025. The bonus tax rate is 22% for bonuses under $1 million. Bonus tax rates vary from state to state, so you can check your state tax regulations to determine your tax rate.


What Rate Are Bonuses Taxed At 2025

In 2024, federal tax on bonuses is 22% for up to $1 million in bonuses, with any amount above that taxed at 37%. The tax rate that you will pay on your bonus will depend on the income bracket that you fall into in the 2024/2025 tax year:

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