Elva Noreen

Tax On Bonus Pay 2025. Read on to learn how your bonus is taxed and how you reduce your taxable income. To simplify the taxation process and ensure a more transparent and efficient framework.

Assuming the bonus amounts to $1 million or less, the employer will withhold 22% — the bonus tax rate for tax year 2024 — in most cases. This means more income of some workers will be subject to social.