Bonus tax calculator Indiana
employers trust to get bonuses right

Ready to get started?


  • Get Started

  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Calculate a flat bonus for your employee in seconds

Our flat bonus calculator can help you find the correct amount of federal and state taxes to withhold in a few clicks. Simply click the button below, enter your employee’s gross bonus amount on the next page, and we’ll do the work.

How much did your employee earn?

Bonus: Enter the total bonus pay your employee has earned this year. This is the amount of their bonus before taxes and deductions are withheld.

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

Leave payroll to us.

We do all the hard work to set you up, starting at just $49 + $6 per employee.

Updated: July 11, 2025

The Indiana bonus tax calculator at the top of this page helps employers quickly estimate the net (take-home) pay employees should receive for bonus payments, using the state’s flat income tax rate.

Does Indiana tax bonuses?

Yes. Bonuses are taxed as regular wages and are subject to the flat state income tax.

How to calculate bonus tax in Indiana

Apply the flat 3% state withholding rate to the bonus, regardless of how it’s paid. Keep in mind that OnPay’s bonus calculator at the top of this page uses the current rate and can crunch the number for you.

 

How can employers in Indiana pay bonuses to employees?

Bonuses can be paid via:

  • Check
  • Direct deposit
  • Pay card
2024_Q2_SMB_Simplify Growth_Banner_970x250_A

Why are bonuses taxed differently from standard pay?

They aren’t — Indiana applies the same flat rate across all wage types.

How do bonuses work in Indiana?

Bonuses are reported on the employee’s W-2 and withheld using the same state rate as regular income.

 

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

3.00% state + 22% federal = 25%, plus FICA and any local income tax.

 

More resources for Indiana employers and employees

LET’S DO THIS

It’s easy
to get started

Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.