The percentage method\n\n Your total bonuses for the year get taxed at a 22% flat rate if they're underR$1 million. If your total bonuses are higher thanR$1 million, the firstR$1 million gets taxed at 22%, and every dollar over that gets taxed at 37%.

Why is tax withholding on bonuses so high? Since bonuses are paid in addition to your normal paycheck, taxes are withheld at a higher rate than your regular wages. This is because they are considered supplemental income.