FAQs about Missouri Bonus Tax in 2025
1. How is a bonus taxed in Missouri in 2025?
Bonuses in Missouri are taxed as supplemental income with a federal flat rate of 22% (or 37% if over $1 million) and a Missouri state supplemental rate of 5.3%, based on 2025 projections. Social Security (6.2%) and Medicare (1.45%) taxes also apply unless the Social Security wage base ($176,100 projected for 2025) is exceeded. The net bonus is the gross amount minus these withholdings.
2. What is the Missouri supplemental tax rate for bonuses in 2025?
The Missouri supplemental tax rate for bonuses in 2025 is projected at 5.3%, a slight decrease from prior years due to ongoing tax cuts. This flat rate applies to all supplemental wages, like bonuses, separate from regular income tax brackets. It’s withheld by employers alongside federal taxes.
3. Are bonuses taxed differently than regular wages in Missouri for 2025?
Yes, bonuses are taxed differently as supplemental income in Missouri, using a flat 5.3% state rate and 22% federal rate (or 37% over $1 million), unlike regular wages taxed via graduated brackets. Social Security and Medicare taxes apply the same way to both, up to applicable limits. Employers may use the percentage or aggregate method, affecting withholding.
4. How much tax will be withheld from my bonus in Missouri in 2025?
For a $5,000 bonus in Missouri in 2025, expect about 22% federal ($1,100), 5.3% state ($265), 6.2% Social Security ($310), and 1.45% Medicare ($72.50), totaling around $1,747.50 withheld. This assumes you’re under the Social Security wage cap ($176,100). Your net bonus would be approximately $3,252.50.
5. Does Missouri have a special tax on bonuses in 2025?
Missouri doesn’t have a "special" tax but applies a flat 5.3% supplemental tax rate to bonuses in 2025, per state withholding rules. This is in addition to federal taxes (22% or 37%) and FICA taxes (Social Security and Medicare). It’s a standard rate for supplemental income, not unique to bonuses.
6. Can I reduce taxes on my bonus in Missouri in 2025?
You can’t directly lower the tax rates, but contributing your bonus to a pre-tax account like a 401(k) or IRA before taxes are withheld can reduce taxable income. Requesting a separate bonus check might ensure the flat 22% federal rate applies instead of the aggregate method. Check with your employer early in 2025 to adjust withholdings via Form W-4.
7. Why does my Missouri bonus in 2025 seem taxed so high?
Bonuses feel heavily taxed because the flat federal rate (22% or 37%) and Missouri’s 5.3% rate, plus Social Security (6.2%) and Medicare (1.45%), add up quickly—often over 35% total. Unlike regular wages, supplemental income doesn’t use tax brackets, leading to higher upfront withholding. You might get some back when filing your 2025 tax return if over-withheld.
8. Will local taxes in Missouri affect my bonus in 2025?
Yes, if you live or work in Kansas City or St. Louis, a 1% local earnings tax applies to your bonus in 2025, on top of state and federal taxes. For a $5,000 bonus, that’s an extra $50 withheld. Not all Missouri areas have local taxes, so it depends on your location.
9. How does the Social Security cap affect my Missouri bonus tax in 2025?
The Social Security tax (6.2%) applies to your bonus only if your total 2025 wages (including the bonus) are below the projected cap of $176,100. If you’ve already hit this limit with regular pay, no Social Security tax is withheld from your bonus. Medicare (1.45%) applies regardless of the cap.
10. What’s the difference between percentage and aggregate methods for taxing my Missouri bonus in 2025?
The percentage method taxes your bonus separately at a flat 22% federal and 5.3% Missouri rate, ideal for standalone checks. The aggregate method combines your bonus with regular pay, using your standard tax bracket, which might increase withholding if you’re in a higher bracket. Employers choose the method; separate checks typically use percentage for simplicity.