Indiana Paycheck Calculator 2026
Indiana's flat state income tax fell again in 2026, to 2.95% (from 3.00% in 2025), and is scheduled to hit 2.9% in 2027 — among the lowest state rates in the country. The catch: every one of Indiana's 92 counties adds its own income tax on top, ranging from roughly 0.5% to over 3%.
Your county rate is set by where you lived on January 1 (Marion County/Indianapolis is about 2%, Allen County/Fort Wayne about 1.6%), so a realistic combined rate for most Hoosiers is 4%–5.5%. The estimate below covers federal tax, FICA and the 2.95% state tax; check your county's rate for the full picture.
The result is an annual 2026 tax-liability estimate apportioned across the pay frequency you choose. It does not reproduce employer withholding from your Form W-4.
Paid hourly? Try the Indiana hourly paycheck calculator. Comparing states? The take-home pay calculator covers all 50 states and DC in one tool.
Capped at the 2026 standard employee limit of $24,500.
Rates run about 0.5%–3% and apply to the state taxable base. Listed rates are representative — confirm yours with your locality.
Reduces modeled income tax and take-home cash, but not payroll taxes. Benefit tax treatment varies.
- Annual gross ÷ 26
- $2,884.62
- Annual federal tax ÷ 26
- −$263.27
- Annual Indiana tax ÷ 26
- −$79.71
- Annual payroll taxes ÷ 26
- −$220.67
- 401(k) contribution
- −$144.23
- Annual estimate ÷ 26
- $2,176.74
In Indiana, an estimated $2,072 a year goes to state income tax on a $75,000 salary.
Annual tax-liability estimate apportioned for display. It is not payroll withholding and excludes Form W-4 adjustments, credits and other state payroll deductions. Indiana local income tax is not included until you pick a rate.
- This is an annual federal and state income-tax liability estimate apportioned across the period you choose. It is not employer payroll withholding.
- It does not collect Form W-4 steps, pay date, year-to-date pay or withholding, residence/work-state interaction, or local tax.
- State schedules are an interim planning model. Filing combinations without a sourced schedule are unavailable rather than silently approximated.
- Internal Revenue Service: 2026 inflation adjustments and income-tax brackets — Federal annual-liability brackets and standard deductions.
- Internal Revenue Service: Publication 15-T (2026) — The payroll-withholding method PlainSums does not yet implement.
- Social Security Administration: 2026 contribution and benefit base — Social Security wage base and employee rate.
- Internal Revenue Service: Additional Medicare Tax — Liability thresholds and the additional 0.9% rate.
- Tax Foundation: 2026 state individual income-tax rates and brackets — Secondary compilation used as a starting reference; local taxes are excluded.
- Arizona State Legislature: Arizona Laws 2026, Chapter 140 — Signed June 13, 2026; supersedes the earlier Arizona deduction snapshot.
- Plante Moran state and local tax advisor (April 2026): Supplemental budget with OBBBA conformity — Maine's 2026 IRC-conformity update; supersedes the earlier Maine deduction snapshot.
The email includes this route only; calculator inputs are not attached.
Indiana income tax in 2026, briefly
Indiana uses a flat 2.95% statutory rate in this interim model. Deductions mean the effective rate on gross wages can differ.
Figures use 2026 rates and are estimates for planning — not tax advice.
Indiana take-home pay by salary (2026)
Planning estimates across common annual salaries in Indiana. Figures assume a single filer with no 401(k) or other entered deductions. Contributing pre-tax can reduce income tax but also reduces current take-home cash, so it does not automatically increase net pay.
| Salary | Annual estimate | Annual ÷ 12 | Annual ÷ 26 | Effective tax rate |
|---|---|---|---|---|
| $35,000 | $29,300 | $2,442 | $1,127 | 16.3% |
| $40,000 | $33,170 | $2,764 | $1,276 | 17.1% |
| $45,000 | $37,040 | $3,087 | $1,425 | 17.7% |
| $50,000 | $40,910 | $3,409 | $1,573 | 18.2% |
| $55,000 | $44,780 | $3,732 | $1,722 | 18.6% |
| $60,000 | $48,650 | $4,054 | $1,871 | 18.9% |
| $65,000 | $52,520 | $4,377 | $2,020 | 19.2% |
| $75,000 | $59,410 | $4,951 | $2,285 | 20.8% |
| $80,000 | $62,780 | $5,232 | $2,415 | 21.5% |
| $90,000 | $69,520 | $5,793 | $2,674 | 22.8% |
| $100,000 | $76,260 | $6,355 | $2,933 | 23.7% |
| $110,000 | $83,000 | $6,917 | $3,192 | 24.5% |
| $125,000 | $93,046 | $7,754 | $3,579 | 25.6% |
| $150,000 | $109,396 | $9,116 | $4,208 | 27.1% |
| $175,000 | $125,746 | $10,479 | $4,836 | 28.1% |
| $200,000 | $143,057 | $11,921 | $5,502 | 28.5% |
Assumptions: 2026 federal brackets and standard deduction, FICA (Social Security up to the $184,500 wage base plus Medicare), and Indiana's 2026 income tax. Single filer, 0% 401(k), no other pre-tax deductions. Effective tax rate is total federal, state and FICA tax as a share of gross pay. Local taxes and credits are excluded.
Indiana income tax brackets (2026)
Indiana applies a single flat rate of 2.95% to taxable income, after a standard deduction or exemption of about $1,000 for a single filer. There are no graduated brackets — every taxpayer pays the same 2.95% marginal rate.
Indiana local income tax rates
Every one of Indiana's 92 counties levies a local income tax (LIT) on top of the 2.95% state rate. The county rate is set by the county's adopting body and applies to Indiana adjusted gross income — so on a typical salary the local tax can easily exceed half of what the state itself collects.
| Jurisdiction | Resident rate | Non-resident rate |
|---|---|---|
| Marion County (Indianapolis) | 2.02% | same |
| Allen County (Fort Wayne) | 1.59% | same |
| St. Joseph County (South Bend) | 1.75% | same |
| Lake County (Gary, Hammond) | 1.5% | same |
| Hamilton County (Carmel, Fishers) | 1.1% | same |
| Vanderburgh County (Evansville) | 1.2% | same |
| Tippecanoe County (Lafayette) | 1.28% | same |
| Porter County (Valparaiso) | 0.5% | same |
Representative published rates for the largest Indiana jurisdictions, applied to the state taxable base. Local rates are set locally and change on their own timetable — confirm yours with Indiana DOR Departmental Notice #1 (county tax rates). The calculator above accepts any rate, so an unlisted locality can still be modeled.
How Indiana compares to every other state
On a $75,000 salary, Indiana ranks #14 of 51 for annual take-home pay among the 50 states plus DC (single filer, no 401(k), state income tax only). The gap between the most and least favourable jurisdiction on this salary is about $5,989 a year.
| Rank | State | Annual estimate on $75k | vs. Indiana |
|---|---|---|---|
| #1 | Alaska | $61,593 | +$2,183 |
| #12 | Arizona | $60,120 | +$711 |
| #13 | Louisiana | $59,729 | +$319 |
| #14 | Indiana (this state) | $59,410 | — |
| #15 | Rhode Island | $59,397 | −$13 |
| #16 | Iowa | $59,354 | −$55 |
| #51 | Oregon | $55,604 | −$3,806 |
Same salary, next state over
How a $75,000 salary compares in Indiana versus neighboring states — same federal tax and FICA, single filer, no 401(k), so the difference is state income tax alone.
Frequently asked questions
- Does Indiana have a state income tax?
- Yes. Indiana applies a flat 2.95% state income tax to taxable income. Indiana's rate fell to 2.95% for 2026 (2.9% scheduled for 2027). Every Indiana county levies an additional local income tax (roughly 0.5%–3%) not included here.
- Does Indiana have a local income tax?
- Yes. Indiana localities levy a county income tax of roughly 0.5%–3%, applied to the state taxable base. Every one of Indiana's 92 counties levies a local income tax (LIT) on top of the 2.95% state rate. The county rate is set by the county's adopting body and applies to Indiana adjusted gross income — so on a typical salary the local tax can easily exceed half of what the state itself collects. Enter your own rate in the calculator above to fold it into the estimate.
- How much is taken out of my paycheck in Indiana?
- Pay is reduced by federal income tax, FICA (6.2% Social Security up to the $184,500 wage base plus 1.45% Medicare), Indiana state income tax, any county income tax, and voluntary deductions such as a 401(k). Enter a salary and pay frequency above for the full breakdown.
- How does the Indiana county income tax work?
- All 92 Indiana counties levy a local income tax (LIT) on top of the 2.95% state rate, based on the county where you lived on January 1 of the tax year. Rates range from about 0.5% to just over 3% — for example Marion County (Indianapolis) is around 2%. Your employer withholds it automatically; it is not included in this calculator's estimate.
- Is Indiana's income tax going down again?
- Yes. The state rate dropped from 3.05% (2024) to 3.00% (2025) to 2.95% for 2026, and is scheduled to fall to 2.9% in 2027 under the phase-down enacted in 2023.
- Is this the amount an employer will withhold in Indiana?
- No. This tool estimates annual federal and state income-tax liability and employee payroll taxes, then divides the annual result by the number of periods you select. Employer withholding uses pay-period wages, Form W-4 details, state forms and payroll rounding.
- How is this estimate calculated?
- We estimate annual federal income-tax liability from 2026 brackets and the standard deduction, employee Social Security and Medicare taxes including Additional Medicare Tax where applicable, the available state schedule, any local rate you enter, and the cash effect of entered deductions. Credits and a full Form W-4 are excluded.
- How reliable is this Indiana paycheck estimate?
- It is a planning scenario, not a payroll prediction. It does not model credits, every benefit rule, work/residence-state interactions, year-to-date withholding or all state payroll programs. Your pay stub and filed return are the relevant records.