Bonus Tax Calculator for Indiana

When you receive a bonus in Indiana, your employer typically withholds at the federal supplemental rate of 22%, plus Indiana's flat 2.95%, and FICA at 7.65%. Local income taxes in some parts of Indiana take an additional cut. The combined withholding can make bonuses feel heavily taxed, though your actual liability may differ from withholding at year-end. This calculator shows both the withholding and the true tax on your bonus in Indiana.

Indiana levies a flat 2.95% state income tax on all taxable income regardless of how much you earn. This makes tax planning straightforward: for every additional dollar you earn, 2.95 cents goes to Indiana. However, certain localities in Indiana impose their own income taxes, which effectively raise the combined state and local rate above 2.95%. Be sure to check whether your city or county adds a local income tax.

The table below shows what you actually keep at five salary levels in Indiana, accounting for federal tax, FICA, and Indiana's flat 2.95% state tax plus estimated local taxes.

See how Indiana compares to other Midwest states. Each link takes you to the bonus tax calculator landing page for that state.

For a comprehensive breakdown of Indiana’s tax structure, salary comparisons, cost-of-living analysis, and more, visit the full Indiana take-home pay page.