INDIANA BONUS TAX · TAX YEAR 2026
Indiana bonus tax calculator
Indiana's bonus tax rate is 2.95% plus your county's rate, from 0.5% in Porter County to 3% in Randolph County, both on the whole bonus with no exemptions. On a $10,000 bonus with $75,000 of wages, a single filer has $497 of Indiana and Marion County tax withheld, plus $2,200 of federal income tax and $765 of Social Security and Medicare, and takes home $6,538. The bonus adds $497 to the year's Indiana state and county tax, so withholding matches the tax.
Your bonus after tax
- Take-home bonus
- $6,538.00
- Federal income tax
- $2,200.00
- Social Security and Medicare
- $765.00
- Indiana tax
- $295.00
- Marion County tax
- $202.00
Indiana tax for the year
- Withheld from the bonus
- $497.00
- Added by the bonus
- $497.00
- Difference
- $0.00
Indiana withholding by bonus size
What a single filer with $75,000 of other wages in Marion County has withheld from bonuses of different sizes, and takes home.
| Bonus | Federal | Social Security and Medicare | State and county | Take-home |
|---|---|---|---|---|
| $1,000 | $220 | $77 | $50 | $654 |
| $5,000 | $1,100 | $383 | $249 | $3,269 |
| $10,000 | $2,200 | $765 | $497 | $6,538 |
| $25,000 | $5,500 | $1,913 | $1,243 | $16,345 |
| $50,000 | $11,000 | $3,825 | $2,485 | $32,690 |
Indiana tax withheld vs. owed
The Indiana state and county tax withheld from a $10,000 bonus against the tax the bonus adds to a single filer's year in Marion County. Over-withholding comes back in your refund; under-withholding is due when you file.
| Annual wages | Withheld | Tax added | Difference |
|---|---|---|---|
| $40,000 | $497 | $497 | $0 |
| $75,000 | $497 | $497 | $0 |
| $150,000 | $497 | $497 | $0 |
| $300,000 | $497 | $497 | $0 |
Indiana bonus tax questions
What is the Indiana bonus tax rate for 2026?
Indiana's bonus tax rate is 2.95% plus your county's rate, from 0.5% in Porter County to 3% in Randolph County, both on the whole bonus with no exemptions. On a $10,000 bonus that is $295 of Indiana tax and $202 of Marion County tax.
Is a bonus taxed more than regular pay in Indiana?
No. When you file, a bonus is taxed at the same Indiana rates as the rest of your wages; only the withholding differs. For a single filer with $75,000 of wages, a $10,000 bonus adds $497 to the year's Indiana state and county tax and has $497 withheld, so withholding matches the tax.
Is county tax withheld from a bonus in Indiana?
Yes. Indiana withholds county tax on the whole bonus, with no exemptions, at the rate of the county you lived in on January 1. In Marion County that is $202 on a $10,000 bonus, on top of $295 of state tax.
What the calculator leaves out
- State and county tax are withheld on the whole bonus with no exemptions.
- County tax follows the county of residence on January 1.
Federal income tax is withheld at the 22% supplemental rate, 37% on supplemental pay above $1,000,000 in a year. Social Security and Medicare treat the bonus as the year's last pay, so wages above $184,500 owe no more Social Security. Filing status changes only the annual comparison.