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As mason55 said, a bonus will typically be reduced a lot when paid out (so that a $5k bonus ends up being more around $2.5k in your bank account), but in the en
by Timothee 13y ago
As mason55 said, a bonus will typically be reduced a lot when paid out (so that a $5k bonus ends up being more around $2.5k in your bank account), but in the end, when you do your tax return, you're taxed the same rate on your salary than on your bonuses.
Think about it this way: on your W-2, (assuming the US here) gross bonus and salary are not separated into two different categories. Thus, it can only be taxed at the same rate.
That being said, I'm surprised you'd say that salary is taxed higher… the typical misconception is to think that bonuses are taxed higher for the aforementioned reason.