Bonus tax calculator Missouri
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Does Missouri tax bonuses?

Yes. Missouri treats bonuses as supplemental wages, and how they’re taxed depends on how and when they’re paid. If bonuses (or other supplemental wages like commissions, back pay, or nondeductible moving reimbursements) are paid together with regular wages, employers must calculate withholding on the combined total using Missouri’s standard withholding tables.

If bonuses are paid separately from regular wages and income tax was withheld from the regular wages, employers may choose one of two options:

• Withhold at the flat rate — 4.7% as of 2025 (note: it was 4.8% in 2024), or
• Use the aggregate method — combine the bonus with wages from the most recent payroll period and withhold on the total, subtracting any tax already withheld from regular wages.

If no tax was withheld from the employee’s regular wages, employers must use the withholding tables to calculate tax on the combined total of the bonus and regular wages.

How to calculate bonus tax in Missouri

How you calculate withholding depends on how the bonus is paid:

Bonus paid with regular wages:

• Add the bonus to the regular pay and apply Missouri’s standard withholding tables.

Bonus paid separately and regular wages were taxed:

Choose between:

• Withholding at the flat rate (4.7% in 2025), or
• Using the aggregate method (combine amounts, calculate total tax, subtract regular withholding).

Bonus paid separately and regular wages weren’t taxed:

• Use the withholding tables on the combined amount of both payments.

What’s considered supplemental wages in Missouri?

Missouri considers the following payments to be supplemental wages: bonuses, commissions, overtime, back pay, nondeductible moving reimbursements, and lump-sum distributions. Vacation pay is treated as supplemental only if it’s paid in addition to regular wages for the same period. If the payment is made for a vacation absence, it’s treated as regular wages.

Additionally, tip income reported to an employer is subject to withholding and should be treated similarly to other supplemental wages an employee receives. Lump-sum distributions are typically subject to the flat rate, while periodic distributions follow the standard tax tables.

How do bonuses work in Missouri?

Bonuses must be included in gross income and reported on Form W-2. Employers withhold based on total earnings.

What is the bonus tax rate in Missouri?

Missouri has a progressive income tax, with rates ranging from 1.5% to 4.8% in 2024, and 2.0% to 4.7% starting in 2025 (subject to adjustment based on revenue triggers). However, for separately paid bonuses, employers may withhold at the flat rate of 4.7% during 2025 if income tax was withheld from regular wages.

How can employers in Missouri pay bonuses to employees?

Bonuses can be paid via:

• Check
• Direct deposit
• Pay card

Why are bonuses taxed differently than standard pay?

They aren’t — Missouri taxes all compensation the same way.

How much tax is taken out of a bonus in Missouri?

4.7% state + 22% federal = 26.7%, plus other standard payroll taxes.

Resources for Missouri employers

• Missouri withholding tax formula
• Employer withholding information
• Business taxation