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Pennsylvania vs Indiana Bonus Tax

Pennsylvania withholds $12 more state tax than Indiana on $10,000 bonus with $80,000 year-to-date wages (flat supplemental method).

By Sammy S. · Founder · AuthorUpdated for 2026

Key finding

Pennsylvania withholds more state tax

$12 more state tax — net gap ~$12 ($6,728 vs $6,740).

Side-by-side bonus withholding scoreboard

Indiana

$295

~2.95% PIT state

Total withheld
$3,260
Net bonus
$6,740
Federal + FICA
$2,965
Rank
#39
Indiana profile →

Total withholding gap: $12 (state drives most of the difference).

Key takeaways — Pennsylvania vs Indiana bonus tax

  • Pennsylvania withholds about $12 more state tax ($307 vs $295).
  • Pennsylvania: ~3.07% PIT (Flat PIT proxy (no separate table)). Indiana: ~2.95% PIT (Flat PIT proxy (no separate table)).
  • Federal withholding is $2,200 in both states on this vignette (22% flat per IRS Pub. 15); FICA is $765 each.
  • Pennsylvania ranks #37; Indiana ranks #39 (#1 = highest state withholding).
  • Model custom bonuses at /bonus-tax-calculator.

Rule contrast — Pennsylvania vs Indiana

TopicPennsylvaniaIndiana
Withholding methodFlat PIT proxy (no separate table)Flat PIT proxy (no separate table)
Supplemental rate~3.07% PIT~2.95% PIT
Vignette state tax$307$295
Vignette federal + FICA$2,200 + $765$2,200 + $765
Vignette total withheld$3,272$3,260
Vignette net$6,728$6,740
Rank (curated)#37#39

State withholding and net at different bonus sizes

$80,000 YTD wages; engine flat supplemental method. State gap is state tax only; net columns include federal and FICA.

BonusPennsylvania stateIndiana stateState gapPA netIN net
$5,000$153.50$147.50$6$3,364$3,370
$10,000$307$295$12$6,728$6,740
$25,000$767.50$737.50$30$16,820$16,850
$50,000$1,535$1,475$60$33,640$33,700

How to read this page

Pennsylvania vs Indiana bonus tax in 2026

This page compares state supplemental withholding for Pennsylvania (PA) and Indiana (IN) on $10,000 bonus with $80,000 year-to-date wages (flat supplemental method), calculated from our engine (same engine as the bonus calculator).

Pennsylvania is higher by about $12 in state tax alone; net take-home favors Indiana by about $12.

No separate supplemental table; educational estimate uses the state’s flat PIT ≈3.07%.

No separate supplemental table; educational estimate uses the state’s flat PIT ≈2.95%.

How each state’s rate works

Pennsylvania (Flat PIT proxy (no separate table)): about 3.07% → $307 on the vignette.

Indiana (Flat PIT proxy (no separate table)): about 2.95% → $295 on the vignette.

Official state agencies for this pair only are linked in the sources section — not every state in the hub.

Federal and FICA are the same on this vignette

Both states withhold $2,200 federal income tax under the Pub. 15 flat method (22% on $10,000).

FICA is $765 in each (Social Security + Medicare on this YTD/bonus pair). The take-home gap is almost entirely state supplemental withholding.

Above $1M supplemental wages with one employer, federal withholding uses 37% on the excess — still the same rule in both states.

Same bonuses, different state tax

The ladder recomputes engine results at $5k–$50k bonuses with $80,000 YTD wages.

When both sides use flat (or flat-PIT proxy) rates, the dollar gap scales roughly with bonus size.

Signing-bonus negotiations should still include regular wage tax and cost of living — not supplemental withholding alone.

What this comparison excludes

Local city taxes (NYC, Philly wage tax, Ohio municipalities) are not included.

Aggregate-method stubs can differ from the flat-percentage estimates shown here.

Final Form 1040 liability depends on annual brackets, deductions, and credits — withholding is a prepayment.

Who this Pennsylvania vs Indiana comparison helps

Useful if…

  • •Candidates weighing Pennsylvania vs Indiana offers with cash bonuses
  • •Payroll comparing multi-state supplemental setup
  • •Editors quantifying high-tax vs no-tax state gaps

Use official tools if…

  • •Local city taxes (NYC, Philly, Ohio municipalities)
  • •Aggregate-method stubs that differ from flat rates
  • •Year-end true-up if federal 22% under-withholds

Pennsylvania vs Indiana checklist

Before treating the withholding gap as a job or relocation decision.

  1. 1Confirm Pennsylvania and Indiana supplemental rules with each revenue department.
  2. 2Ask which withholding method payroll uses (flat vs aggregate).
  3. 3Check the bonus ladder for your award size.
  4. 4Open /bonus-tax-by-state/pennsylvania and /bonus-tax-by-state/indiana for full profiles.
  5. 5Run both scenarios in /bonus-tax-calculator.

Vignette net: $6,728 (PA) vs $6,740 (IN).

What the state gap means

Flat supplemental rates differ by state; federal 22% and FICA rules are the same. Withholding is not your final tax bill when you file.

Limits of this comparison

NYC/local taxes, aggregate-method withholding, and equity vest timing are not modeled. Use the bonus calculator for custom amounts and YTD wages.

Pennsylvania vs Indiana bonus tax FAQs

Pennsylvania withholds about $12 more in state tax ($307 vs $295).

No on this vignette — both use the flat 22% federal supplemental method plus the same FICA rules. The gap is almost entirely state supplemental withholding.

Pennsylvania: ~3.07% PIT. Indiana: ~2.95% PIT.

Indiana, by about $12.

No. This comparison is state supplemental withholding plus federal and FICA only.

Not on this vignette. Both use 22% flat federal supplemental withholding ($2,200) plus the same FICA rules.

Compare another pair

Compare any two states

Supplemental bonus withholding on a $10,000 bonus with $80,000 YTD wages.