How bonuses are withheld
Employers usually use the flat 22% supplemental rate for bonuses paid separately, and 37% on supplemental wages above $1 million in the year. Social Security (6.2% up to the 2026 wage base of $184,500) and Medicare (1.45%, plus 0.9% above $200,000) also apply.
FAQ
Why is my bonus taxed so high?
It is withheld at a flat 22% plus payroll taxes; your real tax depends on your total income and is settled on your return.
Sources (checked Nov 6, 2026): IRS Publication 15 (2026) supplemental wages; SSA 2026 contribution and benefit base.