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Your Bonus Isn’t Taxed at a Higher Rate – It’s Withheld at a Flat One

Source: Money Crashers · Oct 17, 2026 14:45 UTC

Aerial view of refinery storage tanks near Houston on the Gulf coast — File photo Carol M. Highsmith / Library of Congress · Public domain · Source

The Quick Take

That flat rate is why a bonus looks shrunken when it lands, and it has nothing to do with your bracket. It’s a shortcut the IRS lets payroll use on pay that comes on top of your regular wages, like... Source

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