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 headline rates in the Midwest. However, Indiana is unique in that all 92 counties also levy their own income tax on residents, ranging from 0.5% (Switzerland County) to 3.38% (Pulaski County). Marion County (Indianapolis) adds 2.02%, bringing the combined state+county rate to about 5.17% for Indianapolis residents. Hamilton County (Carmel/Fishers, one of the wealthiest counties) adds 1.1%, for a combined 4.25%. County taxes are withheld from paychecks by employers alongside state withholding. The county that governs withholding is your county of residence as of January 1 — not where you work. Indiana taxable income begins with federal AGI with Indiana adjustments, and Indiana allows a $1,000 personal exemption per taxpayer. Indiana law also mandates continued state rate reductions if certain revenue conditions are met, potentially reaching 2.9% by 2029.
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% depending on the county. These county taxes are withheld from your paycheck alongside state income tax. Marion County (Indianapolis) adds 2.02%, so Indianapolis residents pay 3.15% state + 2.02% county = 5.17% combined. Hendricks County adds 1.5%, Hamilton County 1.1%, Allen County (Fort Wayne) 1.48%. The paycheck examples above show state tax only — your actual withholding is higher by your county's rate. A Marion County resident earning $80,000 pays about $1,616 extra in county tax on top of the state figures shown.
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 on a rate-reduction path — from 3.23% through 2022, reduced to 3.15% in 2023. Indiana law (HEA 1002 from 2023) mandates further automatic reductions if state revenue exceeds certain thresholds: the rate could drop to 3.05% by 2027, 2.95% by 2028, and potentially 2.9% by 2029. These triggers have been met in recent years, making further reductions likely. Indiana would then have one of the lowest state income tax rates in the nation.
How do I find my Indiana county income tax rate?
Indiana county income tax rates are set by each county council and updated periodically. The Indiana Department of Revenue publishes the official county tax rate table each year (available at in.gov/dor). The county that applies to your withholding is your county of residence as of January 1 of the tax year — not the county where you work. If you live in Hamilton County but work in Marion County, your employer withholds based on Hamilton County's rate. If you move mid-year, your county rate updates the following January 1.
Does Indiana tax Social Security benefits?
No. Indiana does not tax Social Security benefits at the state level. Indiana also fully exempts military retirement pay and the first $2,000 of other qualifying retirement income. Indiana provides additional retirement income deductions for taxpayers age 62 and older on pension, 401(k), and IRA income — the deduction amount depends on age and type of retirement income. For retirees, Indiana's combination of low state rate, Social Security exemption, and retirement income deductions makes it relatively competitive among Midwestern states.
What personal exemptions does Indiana allow?
Indiana allows a $1,000 personal exemption per taxpayer (and $1,000 per qualifying dependent, with additional $500 for additional children in some cases). Indiana also provides a $1,000 exemption for taxpayers age 65 or older, and a $1,000 exemption for blindness. These exemptions are deducted from Indiana adjusted gross income before the 3.15% rate applies. Indiana's exemptions are more modest than the federal standard deduction ($15,000 in 2026), meaning more income is subject to Indiana tax than to federal tax.
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 above the federal minimum, and Indiana law preempts cities and counties from setting higher local minimums. This means no Indiana city or town can legally require wages above $7.25/hour by local ordinance. By contrast, neighboring Illinois requires $15.00/hour statewide and Chicago requires $16.20/hour. Indiana's low minimum wage is part of a broader posture of keeping labor costs low to attract manufacturing and logistics employers.