What is the tax rate for bonuses?

[XMan]

40%?

 

[Johnnie]

depends if they give it to you as a "gift"..like my company
or as income
I think it is 40% as gift

 

[ggavinmoss]

Yeah, mine was in the low to mid 40's.

Oh well. It's still $$.

-geoff

 

[sohcrates]

yep, around 40%

pisses me off...

 

[FoBoT]

you mean what they withhold?
or what you pay?

most proabably withhold at the highest normal rate of 28%, unless you are talking about 5 or 6 figure level, then it is probably at the highest AMT level, which i forget what that is, you could check the IRS website

but what you actually pay depends on your regular income and your total tax situation, if the bonus bumps you up from 15% to 28% , you will notice the biggest change in your actual tax paid, if you are already in 28% bracket from regular income, then it won't be such a big deal

 

[yakko]

Mine seems to be around 36%.

 

[dexmanone]

my bonus is always taxed at 45%. but at the end of the yr it's taxed as regular income!

 

[JSang]

mine is about 42%...oh well..a reduced bonus is better than nothing