Indiana Bonus Tax Calculator (2026)
Indiana withholds 2.95% state income tax on bonuses, on top of the federal 22% and 7.65% FICA.
Indiana rules for bonuses
State-specific method. Published rates: 2.95% for state part, on the full bonus without exemptions; county rate added.
- County tax (county of residence on Jan 1; nonresidents: county of principal work) is withheld on top
For one-time or non-periodic payments, such as a bonus check, withholding should be computed without exemptions. (DN#1)
Local taxes: County income tax 0.5% (Porter) to 3.0% (Randolph), e.g., Marion 2.02%; table effective 2026-10-01
Take-home bonus by amount
| Bonus | Federal (22%) | FICA | State | Take-home |
|---|---|---|---|---|
| $1,000 | $220 | $77 | $30 | $674 |
| $2,500 | $550 | $191 | $74 | $1,685 |
| $5,000 | $1,100 | $383 | $148 | $3,370 |
| $10,000 | $2,200 | $765 | $295 | $6,740 |
| $20,000 | $4,400 | $1,530 | $590 | $13,480 |
| $50,000 | $11,000 | $3,825 | $1,475 | $33,700 |
Sources
Frequently asked questions
What is the bonus tax rate in Indiana?
Indiana withholds 2.95% on bonuses, on top of the federal 22% and 7.65% FICA.
How much of a $10,000 bonus do I keep in Indiana?
About $6,740 for a single filer earning $85,000: $2,200 federal, $765 Social Security and Medicare and $295 state.
Will I get some of the bonus tax back?
Possibly. The 22% federal rate is only withholding. At tax time your bonus is taxed at your bracket (22% at this salary), and Indiana's flat supplemental rate can also differ from your actual state rate.