Tax Guide
Bonus Tax Withholding Methods
Understanding how bonuses are taxed
Withholding Methods
| Method | Description | Rate |
|---|---|---|
| Flat Rate (22%) | Standard for bonuses under $1M | 22% |
| Aggregate Method | Combined with regular pay | Variable |
| Over $1 Million | 37% on amount over $1M | 37% |
Additional Taxes on Bonuses
Social Security
6.2% on wages up to $168,600
Wage base for 2026
Medicare
1.45% + 0.9% over $200K
No wage cap