💡 Select your city/county above — the largest jurisdictions are computed; smaller ones still aren't covered (see methodology below). Bonus state-tax and local-tax figures are marginal-bracket estimates, not necessarily any special supplemental rate your state or city may apply to bonus payments specifically.
Calculating a regular paycheck? Try our Indiana paycheck calculator →
How Bonuses Are Taxed in Indiana (2026)
A bonus paid on a separate check in Indiana has a flat 22% federal tax withheld (37% on cumulative supplemental wages over $1,000,000 in a year), 7.65% FICA, and Indiana's flat 2.95% state income tax. Withholding is not a higher tax rate — it is just how much your employer holds back up front; your actual tax on the bonus is settled when you file, and any over-withholding comes back as refund.
| Component | Rate on the bonus |
|---|---|
| Federal income tax (supplemental, percentage method) | 22% flat · 37% above $1,000,000/yr |
| Social Security | 6.2% (up to $184,500 of total wages) |
| Medicare | 1.45% · +0.9% above $200,000 |
| Indiana state tax | 2.95% flat |
Some employers instead use the aggregate method — adding the bonus to your regular paycheck and withholding as if that were every check — which can withhold more or less than the flat 22%. The calculator above uses the flat-rate (percentage) method.
Indiana Bonus Take-Home by Amount (2026)
Flat-rate (percentage) method, single filer, bonus paid separately on top of a $65,000 salary. Enter your own numbers in the calculator above — this table is a starting point.
| Bonus | Federal (22%) | FICA | Indiana tax | 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 |
| $15,000 | $3,300 | $1,148 | $443 | $10,110 |
| $25,000 | $5,500 | $1,913 | $738 | $16,850 |
How Indiana Paycheck Tax Is Calculated (2026)
Source: Indiana Department of Revenue| Flat state rate | 2.95% |
|---|
Federal Tax & FICA (shared across all states)
| Filing status | Standard deduction |
|---|---|
| Single | $16,100 |
| Married Filing Jointly | $32,200 |
| Head of Household | $24,150 |
| Federal brackets (all filing statuses) | 10% / 12% / 22% / 24% / 32% / 35% / 37% |
|---|---|
| Social Security | 6.2% up to $184,500 wage base |
| Medicare | 1.45% on all wages, +0.9% above $200,000 single/HoH, $250,000 MFJ |
⚠️ Indiana's married-filing-jointly and head-of-household state brackets have not yet been independently verified against the primary source above — this calculator uses Indiana's single-filer brackets as an estimate when those statuses are selected.
Guideline version 2026-IN-v1 · Last verified 2026-07-26
Indiana Bonus Tax FAQ
How much are bonuses taxed in IN?
An Indiana bonus paid separately has the flat 22% federal supplemental tax withheld (37% above $1,000,000/year), 7.65% FICA, and Indiana's flat 2.95% state income tax, plus your county income tax (roughly 1%-2%). Combined withholding is around 33-35% depending on county.
What is the Indiana bonus tax rate for 2026?
22% federal + 2.95% Indiana state + your county rate + 6.2% Social Security + 1.45% Medicare. Select your county (Marion, Allen, St. Joseph, Elkhart, Hamilton and others are built in) to include the local piece.
Is Indiana county tax withheld from a bonus?
Yes - Indiana county income tax applies to supplemental wages based on your county of residence as of January 1. The calculator adds it when you pick your county.
Methodology & Source
Indiana state tax figures sourced from Indiana Department of Revenue (https://www.in.gov/dor/), citing Ind. Code § 6-3-2-1 — flat 2.95% for 2026. Federal brackets, standard deductions (single/MFJ/HoH), and FICA constants sourced from the IRS (Revenue Procedure 2025-32; married-filing-jointly Additional Medicare threshold of $250,000 is a separate, unindexed statutory figure). Indiana's married-filing-jointly and head-of-household figures are not yet independently verified and currently fall back to single-filer brackets — see the caveat in the formula section above.
Local tax figures sourced from Indiana Department of Revenue, Departmental Notice #1 (county tax rate chart). Rates cross-checked against two independent secondary sources 2026-07-29 (countrytaxcalc.com, tax-rates.org via search synthesis) for the 7 counties listed; the official DOR PDF (in.gov/dor/files/dn01.pdf) could not be parsed by available tooling in this environment, so these rely on secondary-source cross-checks only, same fallback as documented elsewhere on this site (e.g. tax.ohio.gov). Lake County was excluded — uniquely among Indiana's 92 counties, it currently levies no local income tax. Vanderburgh, Vigo, and Monroe Counties were excluded due to conflicting rates across sources (e.g. Vanderburgh cited as both 1.20% and 1.75%) rather than guess between them. Indiana has 92 counties total; only the 7 largest with agreeing sources are covered below.
Bonus federal withholding uses the flat supplemental-wage rate (22%, 37% above $1,000,000 cumulative supplemental wages/year), per IRS Publication 15 (Circular E), Employer's Tax Guide, 2026 edition — the alternative "aggregate method" is not modeled. Indiana publishes no separate supplemental withholding rate, so the calculator estimates the state tax on the bonus from your marginal bracket.
This is an estimate based on standard single-filer federal, FICA, and IN state calculations. Actual withholding may differ based on your W-4 elections, pre-tax deductions, and other factors.
Guideline version: 2026-IN-v1 · Effective: 2026-01-01 · Last verified: 2026-07-26