Read Your Pay Stub
Why Your Bonus
Felt So Small
It wasn't taxed at a higher rate. It was withheld at a flat rate — and a few other lines on your stub made the hit look bigger than it is.
The real reason
Bonuses are typically withheld at a flat 22% federal supplemental rate.
That's withholding — not the tax you actually owe.
In a higher bracket (32–37%)? You'll owe the difference when you file.
Why it feels like more came out
- Medicare — 1.45%
- Additional Medicare — 0.9% (income > $250k MFJ)
- Social Security — 6.2% (until you've maxed out)
- State income tax
- Pre-tax 401(k) contributions
Stacked together it looks huge — but the federal withholding is still only 22%.
Example — $100,000 bonus, 35% bracket
Withheld at 22%$22,000
Actually owed at 35%$35,000
Owe at filing$13,000
Action
Plan for the gap before April
If your bonus lands in Q4 and your withholding is light, a Q4 estimated payment by Jan 15 can keep you clear of underpayment penalties.
the gap before the IRS reminds you.