Indiana
Indiana paycheck calculator
Indiana’s state income tax is a flat 2.95% after a $1,000 personal exemption ($2,000 joint), down from 3% on January 1, 2026. A further cut to 2.9% scheduled for 2027 is not used early. The state piece is simple. The county piece is where Indiana paychecks diverge: every county levies a local income tax, and only Marion County (Indianapolis) is named in the calculator.
Open the Indianapolis page when Marion County is your locality. For Allen, Hamilton, or any other county, enter the certified percent from the Department of Revenue chart as a custom local rate. Leaving Marion selected for a suburban county will misstate the local line.
A traditional 401(k) reduces the Indiana state base in this model. Federal tax and FICA still dominate most salaries. Reciprocity notes can appear when you mark a work state; this page still taxes Indiana and does not prepare the other return.
Example take-home
| Salary | Federal | FICA | State | Payroll | Local | Net / year | Net / check |
|---|---|---|---|---|---|---|---|
| $40,000.00 | $2,620.00 | $3,060.00 | $1,150.50 | $0.00 | $0.00 | $33,169.50 | $1,275.75 |
| $60,000.00 | $5,020.00 | $4,590.00 | $1,740.50 | $0.00 | $0.00 | $48,649.50 | $1,871.13 |
| $80,000.00 | $8,770.00 | $6,120.00 | $2,330.50 | $0.00 | $0.00 | $62,779.50 | $2,414.59 |
| $100,000.00 | $13,170.00 | $7,650.00 | $2,920.50 | $0.00 | $0.00 | $76,259.50 | $2,933.05 |
| $150,000.00 | $24,734.00 | $11,475.00 | $4,395.50 | $0.00 | $0.00 | $109,395.50 | $4,207.52 |
Loading the 2026 calculator…
What this page includes
- Federal income tax using the 2026 standard deduction and Rev. Proc. 2025-32 brackets
- Social Security (6.2% up to $184,500) and Medicare (1.45%, plus Additional Medicare when wages clear the filing-status threshold)
- Indiana: flat state income tax at 2.95%
- No employee state disability / paid-leave premium modeled for this state yet
- Local wage tax only if you select a city/county or enter a custom percent
Local tax
Indiana’s local income tax is levied by county. Marion County (Indianapolis) is named at 2.02%. Other counties need the certified percent from the Department of Revenue chart.
What is not included
Credits, itemized deductions, multi-state credits, property tax, sales tax, and unsourced local rates are not included. Employer payroll tables can differ from this annualized estimate. This Indiana page does not invent taxes that are missing from the 2026 data files.
Questions
What is Indiana’s state rate for 2026?
A flat 2.95% after a $1,000 single / $2,000 joint personal exemption.
Is county tax included on the state page?
Only if you select Marion County or enter a custom percent. The state page starts with local off.
Will the rate fall again in 2027?
A cut to 2.9% is scheduled; this file keeps 2.95% for tax year 2026.
Nearby
Compare · Bonus · Hourly · Marion County, Indiana · All states · Local taxes
Sources
- IRS newsroom, tax year 2026 inflation adjustments (Rev. Proc. 2025-32)
- Rev. Proc. 2025-32 (PDF)
- Tax Foundation, 2026 federal income tax brackets
- IRS Publication 15-T, Federal Income Tax Withholding Methods
- SSA, Contribution and benefit base
- IRS Publication 15 (Circular E), Employer's Tax Guide
- IRS, Questions and answers for the Additional Medicare Tax
- Tax Foundation, State Individual Income Tax Rates and Brackets, 2026
- IRS, state government websites index
See a rate that looks wrong? The sources and the gaps are public.