Indiana Income Tax Calculator 2026

Indiana has a flat income tax with a top rate of 2.95% in 2026. Enter your income to see your annual state and federal tax bill.

Updated 2026-10-03

Annual take-home pay$47,492$47,492 per year · effective tax rate 20.8% · marginal 14.9%

	Annual	Annual
Gross pay	$60,000.00	$60,000
Federal income tax	-$5,020.00	-$5,020
Social Security (6.2%)	-$3,720.00	-$3,720
Medicare	-$870.00	-$870
Indiana income tax	-$1,740.50	-$1,741
Local income tax	-$1,158.00	-$1,158
Take-home pay	$47,491.50	$47,492

Take-home $47,492 79.2%
Federal income tax $5,020 8.4%
Social Security $3,720 6.2%
Medicare $870 1.5%
State tax $1,741 2.9%
Local tax $1,158 1.9%

Take-home pay vs. taxes at every income level in Indiana

Take-home pay
Total taxes

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Indiana effective state tax rate by income

Single
Married jointly

2026 take-home pay in Indiana at common salaries

Single filer, standard deduction, no pre-tax deductions, paid bi-weekly.

Salary	Federal	FICA	State + local	Take-home / yr	Per paycheck	Effective
$30,000	$1,420	$2,295	$1,435	$24,851	$956	17.2%
$50,000	$3,820	$3,825	$2,411	$39,945	$1,536	20.1%
$75,000	$7,670	$5,738	$3,631	$57,962	$2,229	22.7%
$100,000	$13,170	$7,650	$4,851	$74,330	$2,859	25.7%
$150,000	$24,734	$11,475	$7,291	$106,501	$4,096	29.0%
$250,000	$51,304	$15,514	$12,171	$171,012	$6,577	31.6%

Take-home
Total tax

$30,000

$24,851

$5,150

$50,000

$39,945

$10,056

$75,000

$57,962

$17,038

$100,000

$74,330

$25,671

$150,000

$106,501

$43,500

$250,000

$171,012

$78,989

Indiana income tax rates for 2026

Single

Taxable income over	Rate
$0	2.95%

Standard deduction $0 · exemption $1,000

Married filing jointly

Taxable income over	Rate
$0	2.95%

Standard deduction $0 · exemption $2,000

Local taxes: All 92 Indiana counties levy a local income tax based on your county of residence on January 1, ranging from 0.5% (Porter) to 3.0% (Randolph); Marion County (Indianapolis) is 2.02%. Typical rate shown is the simple average of all 92 county rates in Departmental Notice #1. The calculator applies a 1.93% default you can edit.

Key facts about Indiana taxes

Indiana’s flat state income tax rate is 2.95% for 2026 and is scheduled to fall to 2.90% in 2027.
Every Indiana county also levies its own income tax, from 0.5% in Porter County to 3.0% in Randolph County; Marion County (Indianapolis) charges 2.02%.
Indiana has no standard deduction; instead each taxpayer gets a $1,000 personal exemption, and most dependent children add a further $1,500.
Adopted children qualify for a $3,000 exemption for withholding purposes.
Indiana’s 7% state sales tax is tied for the second-highest state rate in the US, and there are no local sales taxes.

Federal taxes withheld from every Indiana paycheck

Federal bracket (2026, single)	Rate
Over $0	10%
Over $12,400	12%
Over $50,400	22%
Over $105,700	24%
Over $201,775	32%
Over $256,225	35%
Over $640,600	37%

More Indiana calculators

What this calculator simplifies

County tax uses a single statewide-average rate; the actual rate depends on the county you lived in on January 1.
Assumes $2,500 per dependent (base $1,000 + $1,500 additional); non-child dependents get only $1,000.
Extra exemptions for age 65+/blind, renter’s deduction, adopted-child exemption and Indiana credits (EITC, unified tax credit for the elderly) are not modeled.

Indiana’s 2.95% rate plus county tax

Indiana taxes adjusted gross income at a flat 2.95% for 2026, scheduled to drop to 2.90% in 2027. On the same Form IT-40 you also calculate county income tax, which every one of Indiana’s 92 counties levies, at rates from 0.5% to 3.0%. Together they make Indiana’s combined income tax look more like 4% to 6% for most residents.

Indiana starts from federal AGI, then applies its own add-backs and deductions on Schedules 1 and 2 and subtracts exemptions. There is no standard deduction, so exemptions and Indiana-specific deductions are the main allowances.

Exemptions and deductions you can claim

Indiana’s allowances are small dollar amounts, so they matter most to lower and middle incomes.

Personal exemption: $1,000 each for you and your spouse, with extra exemptions for age 65 or older and blindness.
Dependents: $1,000 per dependent, plus an additional $1,500 for most qualifying dependent children; adopted children qualify for a larger amount.
Renter’s deduction: the lesser of rent paid on your Indiana principal residence or $3,000 ($1,500 if married filing separately). The home must be subject to Indiana property tax.
Credit for local taxes paid outside Indiana: residents who pay income tax to a locality in another state can credit it against their Indiana county tax.

Worked example: same income, three counties

A single filer with $70,000 of wages and one exemption has Indiana taxable income of $69,000. State tax is $2,036. County tax adds $759 in Hamilton County (1.1%), $1,394 in Marion County (2.02%) and $2,070 in Randolph County (3.0%).

The total Indiana bill therefore ranges from $2,794 to $4,106 for identical income, a gap of $1,311 a year. When comparing Indiana with neighboring states, always include the county rate.

Residency, part-year and nonresident returns

Full-year residents file Form IT-40. Part-year residents and nonresidents with Indiana income other than wages file Form IT-40PNR. Residents of Kentucky, Michigan, Ohio, Pennsylvania and Wisconsin whose only Indiana income is wages file Form IT-40RNR, mainly to settle county tax.

Indiana residents working in a reciprocal state report those wages to Indiana as if earned at home; tax withheld by the other state cannot be credited and must be refunded by that state. For income taxed by a non-reciprocal state, Indiana either allows a credit or, for a group of reverse-credit states listed in Bulletin #28, the other state gives the credit.

Because county tax is settled on the same return as state tax, check that the county codes you enter on the IT-40 match where you actually lived and worked on January 1. A wrong county can mean an unexpected balance due or a delayed refund. Residents who pay income tax to a locality in another state get a credit against their Indiana county tax, but not against the state tax.

Frequently asked questions

Does Indiana have a state income tax?

Yes. Indiana has a flat income tax of 2.95% for 2026.

How much is take-home pay on $75,000 in Indiana (IN)?

A single filer earning $75,000 in Indiana takes home about $57,962 a year ($2,229 per bi-weekly paycheck) in 2026, after $7,670 federal income tax, $5,738 FICA and $3,631 in state and local taxes. That is an effective rate of 22.7%.

What is the sales tax rate in Indiana?

The Indiana state sales tax rate is 7.00%. With local taxes the average combined rate is 7.00%, and the highest combined rate is 7.00%.

What is the 2026 federal standard deduction?

$16,100 for single filers, $32,200 for married couples filing jointly and $24,150 for heads of household.

How much Social Security and Medicare is withheld?

Employees pay 6.2% Social Security on wages up to $184,500 in 2026, and 1.45% Medicare on all wages, plus 0.9% Additional Medicare on wages over $200,000 (single).

What will the Indiana rate be in 2027?

It is scheduled to fall from 2.95% to 2.90% for 2027, under the schedule published by the Indiana Department of Revenue.

How much is the Indiana renter’s deduction?

The lesser of the rent you paid on your Indiana principal residence or $3,000 ($1,500 if married filing separately).

Do I pay Indiana county tax if I moved into Indiana mid-year?

County tax is based on where you lived on January 1. If you lived outside Indiana that day, county tax depends on whether your principal workplace was in an Indiana county on January 1.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.