Indiana Take-Home Pay Calculator
3.15% flat rateEstimate your net paycheck after federal taxes, FICA, and Indiana state income tax.
Last updated: April 2026
Indiana Income Tax
Indiana taxes income at a flat 3.15% rate. Counties may impose additional local taxes.
Indiana State Income Tax: What You Need to Know
Indiana taxes income at a flat 3.15% rate. Counties may impose additional local taxes.
Indiana has a flat 3.15% state income tax rate — one of the lowest in the Midwest. However, Indiana is unique in that all 92 counties also levy their own income tax on residents, ranging from 0.5% to 3.38% depending on the county. Marion County (Indianapolis) adds 2.02%, bringing the combined state+county rate to about 5.17% for Indianapolis workers. County taxes are withheld by employers and remitted separately. Indiana taxable income begins with federal AGI with Indiana adjustments, and Indiana allows a $1,000 personal exemption per taxpayer.
On top of state taxes, all workers also pay federal income tax based on the 2026 progressive brackets, plus FICA taxes: Social Security (6.2% up to $176,100) and Medicare (1.45% on all wages).
Our calculator applies Indiana's 3.15% flat rate to your gross income as a simplified estimate. Actual state taxes may vary based on deductions, exemptions, and local taxes not captured in this estimate.
Indiana Take-Home Pay Examples (2026, Single Filer)
Estimates based on standard deduction, no pre-tax deductions. Last updated: April 2026.
| Salary | Federal Tax | State Tax | FICA | Take-Home |
|---|---|---|---|---|
| $40,000 | $3,167 | $1,260 | $3,060 | $32,513 |
| $60,000 | $6,617 | $1,890 | $4,590 | $46,903 |
| $80,000 | $10,817 | $2,520 | $6,120 | $60,543 |
| $100,000 | $15,617 | $3,150 | $7,650 | $73,583 |
Frequently Asked Questions: Indiana Taxes
Does Indiana have county income taxes on top of the state tax?
Yes — all 92 Indiana counties levy their own income tax on residents, ranging from 0.5% to 3.38%. These county taxes are withheld from your paycheck along with state income tax. Marion County (Indianapolis) adds 2.02%, so Indianapolis residents effectively pay 3.15% state + 2.02% county = 5.17% combined. The paycheck examples above show state tax only — add your county rate for the full picture.
What is Indiana's state income tax rate for 2026?
Indiana's flat state income tax rate is 3.15% for 2026. Indiana has been gradually reducing its rate — it was 3.23% from 2015 through 2022, then 3.15% from 2023 onward. Indiana law requires further rate reductions if state revenue conditions are met, potentially dropping the rate to 2.9% by 2029.
How do I find my Indiana county income tax rate?
Indiana county income tax rates are set by each county government and updated periodically. The Indiana Department of Revenue publishes the current county tax rates each year. The county that applies is your county of residence as of January 1 of the tax year — not where you work. You can look up your county's rate on the Indiana DOR website.
Does Indiana tax Social Security benefits?
No. Indiana does not tax Social Security benefits. Indiana also exempts military retirement pay and certain other retirement income from state income tax. This makes Indiana relatively retirement-friendly despite having county income taxes.
What personal exemptions does Indiana allow?
Indiana allows a $1,000 personal exemption per taxpayer and $1,500 per qualifying dependent. Indiana also allows a $1,000 exemption for each taxpayer who is age 65 or older, and a $1,000 exemption for blindness. These exemptions reduce Indiana taxable income before the 3.15% rate is applied.
What is Indiana's minimum wage in 2026?
Indiana's minimum wage is $7.25/hour — the federal floor. Indiana has not raised its minimum wage above the federal minimum. Indiana also preempts cities and counties from setting higher local minimums, meaning no Indiana locality can mandate pay above $7.25/hour by state law.