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Indiana · tax year 2026

Indianapolis paycheck calculator

People in Indianapolis pay a local income tax of 2.02% on top of Indiana income tax. On $85,000 a year, a single person takes home about $64,453, or $2,478.95 every two weeks.

How often you are paid
Retirement and benefits 401(k), HSA, health insurance

A 403(b), 457 or TSP works the same way as a 401(k) here. Amounts below are for the whole year.

Bonus, tips and overtime including the new federal deductions
W-4 and other details second job, extra withholding, contractor
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Estimated take-home pay · 2026

Biweekly pay · Single · Marion County, Indiana

Example

$2,478.95 per paycheck

from $3,269.23 before taxes · 26 paychecks a year

You keep$75.83of every $100 earned
Taxes take24.2%of gross pay, $20,547 a year
Of your next $1,000$654is yours to keep
After tax, an hour is worth$30.99at 2,080 paid hours a year

Where each dollar goes

  • Take-home pay75.8%$64,453
  • Federal income tax11.6%$9,870
  • Social Security and Medicare7.6%$6,503
  • State taxes2.9%$2,478
  • Local taxes2.0%$1,697

Line by line

Per paycheckPer year

Pay

Gross pay$3,269.23$85,000

Taxes

Federal income tax$379.62$9,870

2026 brackets after the $16,100 standard deduction, worked out for the year and spread over your paychecks. IRS Rev. Proc. 2025-32

Social Security$202.69$5,270

6.2% of wages up to $184,500. Traditional 401(k) contributions do not reduce it. SSA wage base · 2026

Medicare$47.40$1,233

1.45% of wages, with no cap. IRS Pub. 15 · 2026

Indiana income tax$95.31$2,478

Indiana taxes income at a flat 2.95% for 2026 after a $1,000 exemption per person. Every county adds its own income tax. Indiana · 2026

Marion County, Indiana$65.26$1,697

Resident rate 2.02%. It is charged on the same taxable income as the state tax. Marion County income tax · 2.02%

Take-home pay$2,478.95$64,453

Tap a line to see how it was worked out. Each paycheck is the year's figure divided by 26 and rounded to the cent.

Show the math

Federal income tax for the year

Wages$85,000.00
Standard deduction−$16,100.00
Taxable income$68,900.00
Tax from the 2026 brackets$9,870.00
Federal income tax$9,870.00

Indiana income tax for the year

Wages taxed by the state$85,000.00
Exemptions−$1,000.00
Taxable income$84,000.00
Tax from the rate schedule$2,478.00
Indiana income tax$2,478.00
Sources for these figures

What if

A $5,000 raise+$3,269 a yearYou keep $65 of each extra $100.
1% more into a 401(k)$850 saved a yearTake-home falls by only $23.88 a paycheck, because the tax bill drops too.
A $5,000 bonus$3,269 after taxEmployers often withhold more than this up front; the difference comes back at tax time.
+$4,175 a yearTexas, with no city tax. Compare side by side

Estimate for tax year 2026. Your real paycheck depends on your W-4, your benefits and your employer's payroll system. This is education, not tax, payroll or financial advice.

Take-home pay in Indianapolis by salary

Single filer living in Indianapolis, no dependents, no retirement or benefit deductions. Tax year 2026.
SalaryFederal income taxSocial Security and MedicareState income taxLocal taxTake-home a yearA monthEvery 2 weeks
$30,000$1,420$2,295$856$586$24,844$2,070$955.53
$40,000$2,620$3,060$1,151$788$32,382$2,698$1,245.45
$50,000$3,820$3,825$1,446$990$39,920$3,327$1,535.38
$60,000$5,020$4,590$1,741$1,192$47,458$3,955$1,825.29
$75,000$7,670$5,738$2,183$1,495$57,915$4,826$2,227.49
$100,000$13,170$7,650$2,921$2,000$74,260$6,188$2,856.13
$150,000$24,734$11,475$4,396$3,010$106,386$8,865$4,091.76
$200,000$36,734$14,339$5,871$4,020$139,037$11,586$5,347.56

The Indianapolis local income tax

Marion County's income tax rate is 2.02%, in effect from October 1, 2026. Indiana county tax goes to the county where you lived on January 1 and is charged on Indiana taxable income after exemptions.

Indianapolis is in Marion County, and the county income tax is the local tax here.

  • Marion County, Indiana: $1,697 a year on $85,000 (2.02%)

For a single person on $85,000, that is $1,697 a year on top of state and federal tax: about $65.26 from each biweekly paycheck.

Source: Indiana Department of Revenue, Departmental Notice #1 (effective October 1, 2026). Last checked October 11, 2026.

Indiana taxes in Indianapolis

Indiana taxes income at a flat 2.95% for 2026 after a $1,000 exemption per person. Every county adds its own income tax. Elsewhere in Indiana, with no local tax, the same $85,000 leaves $66,150.

Indiana paycheck calculator and tax rates

Indianapolis against other cities

Single person earning $85,000 a year and living in each place. Taxes only; living costs are not counted.
PlaceState taxesLocal taxTake-home a yearAgainst Indianapolis
Indianapolis$2,478$1,697$64,453
New York City$4,391$2,860$61,376−$3,076
Los Angeles$4,621$0$64,007−$446
Chicago$4,063$0$64,565+$112
Houston$0$0$68,628+$4,175
Phoenix$1,731$0$66,896+$2,444
Philadelphia$2,669$3,175$62,784−$1,669
Seattle$1,179$0$67,448+$2,996

Compare Indianapolis with anywhere else · All cities

Indianapolis paycheck questions

How much is $60,000 a year after taxes in Indianapolis?

About $47,458 a year, or $3,955 a month, for a single person with no other deductions. Federal income tax takes $5,020, Social Security and Medicare $4,590, Indiana income tax $1,741 and the local tax $1,192.

Does Indianapolis have a city income tax?

Yes: 2.02%. On $85,000 a year it comes to $1,697.

What taxes come out of a paycheck in Indianapolis?

Federal income tax, Social Security (6.2%) and Medicare (1.45%), Indiana income tax (2.95% flat), and the Indianapolis local tax.

I work in Indianapolis but live somewhere else. Do I pay the tax?

No. It follows where you live. You pay the local tax, if any, of the place you live in.

Sources

Figures last checked on October 11, 2026. If something looks wrong, tell us.

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