I’ve heard a lot of guys say that the bonus will be taxed at a higher rate. Not necessarily true. The company has the option to either tax the supplemental income (bonus) at the individual’s tax rate according to information on their W4 or 22% (down from 25% from TY 2017). It’s the company’s choice. If 22% is higher than your marginal tax rate, it’s not like you lose the money - it’s simply withheld, you’ll get the money back in your tax return in 2019. I’m the last guy who has an interest in giving the government a free loan but these are the facts. Source: IRS publication 15, section 7.