How Indiana taxes your paycheck
Indiana keeps it simple: a flat 2.95% income tax. Your state taxable income is your gross pay minus the standard deduction, then the flat rate applies to every dollar above that.
On exemptions: $1,000 per taxpayer and $1,000 per dependent; additional $1,500 for certain dependent children under 19 (under 24 if full-time students); $3,000 for qualifying adopted children. Amounts are not indexed.
What’s taken out of a Indiana paycheck
| Taxable income (single) | Marginal rate |
| Over $0 | 2.95% |
This is a flat-rate schedule: one rate applies to all taxable income (after the standard deduction).
Example: a $75,000 salary in Indiana
On a $75,000 salary as a single filer: federal taxable income is $75,000 − $16,100 = $58,900, giving $7,670 of federal tax. State taxable income is $58,900, giving $1,738 of state tax. FICA takes $4,650 (Social Security) + $1,088 (Medicare). Estimated take-home: $59,855 per year ($2,302 per biweekly paycheck).
| Gross salary | $75,000 |
| Federal income tax | −$7,670 |
| State income tax (IN) | −$1,738 |
| Social Security (6.2%) | −$4,650 |
| Medicare (1.45%) | −$1,088 |
| Estimated take-home | $59,855 |
| Effective tax rate | 20.2% |
Single filer, standard deduction, no pre-tax contributions. The interactive calculator above recomputes this for any salary and filing status.
Local income taxes in Indiana
County income taxes are widespread: 0.5% to 3.0% effective Jan 1, 2026 (e.g., Marion County 2.02%, Randolph County 3.00%). Based on county of residence on Jan 1 and collected on the state return.
Indiana take-home pay: frequently asked questions
Does Indiana have a state income tax in 2026?
Yes. Indiana has a flat 2.95% income tax in 2026. There is no separate state rate table beyond the flat rate.
What are Indiana's 2026 tax brackets and standard deduction?
A flat 2.95% income tax. Indiana has no standard deduction of its own; the model uses the federal standard deduction ($16,100 single) as a proxy.
What payroll taxes come out of a Indiana paycheck?
No employee-paid state payroll taxes are in the 2026 dataset for Indiana. Federal Social Security and Medicare still apply.
Are there local income taxes in Indiana?
Yes — this matters. County income taxes are widespread: 0.5% to 3.0% effective Jan 1, 2026 (e.g., Marion County 2.02%, Randolph County 3.00%). Based on county of residence on Jan 1 and collected on the state return. The calculator above does not include local taxes, so city earners should treat the estimate as slightly high.
Are there Indiana tax credits that affect take-home pay?
One to know: Tips and overtime deductions. For the 2026 tax year only: deductions for qualified tips (capped at $25,000 per return) and qualifying overtime premium pay (capped at $12,500; $25,000 MFJ), mirroring federal rules. Credits reduce tax owed rather than taxable income; the calculator above does not model individual credits.
Methodology & sources
State figures come from the site's versioned 2026 tax dataset (v1.0.0, researched 2026-10-11),
regenerated into this page automatically. Model: state taxable income = gross pay minus the state's 2026
standard deduction (Indiana has no standard deduction of its own, so the federal standard deduction is used as a proxy);
state brackets applied marginally; employee-paid state payroll taxes added at their 2026 rates and wage bases
(with published annual caps). Federal tax uses 2026 IRS brackets and standard deductions; FICA uses the 2026
Social Security wage base ($184,500) and Medicare rates. Personal exemption credits/deductions and
individual tax credits are not modeled — the result is an estimate, not a tax return.
State sources
Federal sources
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