What is the Indiana income tax rate for 2026?

A flat 2.95%, reduced from 3.00% on January 1, 2026, under HB1001 of 2023. Indiana has no brackets — the same rate applies to every dollar of taxable income. That is the state portion only; your county levies its own on top.

Does Indiana have a standard deduction?

No. Indiana allows a personal exemption of $1,000 per taxpayer and $1,000 per dependent, and nothing else. There is no standard deduction, so almost all of an Indiana salary is exposed to the state rate.

Does this calculator include Indiana county tax?

No, and in Indiana that omission matters more than in most states, because there is no county without one. All 92 counties levy an income tax, typically between 1% and 3%, assessed on the county you lived in as of January 1. On a $75,000 salary a 2% county rate is about $1,500 a year — comparable to the $2,183 the state itself takes.

Which county's rate applies if I move?

The county you lived in on January 1 of the tax year, not where you work and not where you moved to later. Indiana fixes it on that date for the whole year.

Are Indiana payroll deductions taken from my paycheck?

Not by the state. Indiana unemployment insurance is employer-funded and the state runs no disability or paid family leave program. Beyond the state and county income tax, the only deductions are federal.

Is my data sent anywhere?

No. The calculation runs entirely in your browser. There is no account, and the salary you type is never sent to a server or stored. It never leaves your device.

United States · Indiana · Tax year 2026

Indiana Paycheck & Income Tax Calculator

Indiana cut its rate to 2.95% for 2026, but every one of its 92 counties levies its own tax on top. Type your salary to see the state half of the picture.

Take-home per paycheck · 2026

$2,284.98

Paid every two weeks · $59,410 a year

You keep 79% of your gross pay. Indiana itself takes 2.9%.

This is your 2026 tax for the whole year, spread evenly across 26 paychecks and rounded to the cent. A real payslip can differ slightly from one paycheck to the next: employers withhold using tables that approximate the year's tax rather than match it, and stop taking a contribution once your wages for the year pass its cap.

Effective rate 20.8% of your gross

Marginal rate 24.9% on your next dollar

Total tax $599.64 a paycheck · $15,591 a year

Federal income tax$295.00
IN income tax$83.96
FICA$220.68
Take-home$2,284.98

Itemized deductions from gross pay, per paycheck and per year
Deduction	Rate	Per paycheckPer year	Per year
Gross payAnnual salary ÷ 26		$2,884.62$75,000.00	$75,000.00
Federal
Federal income taxAfter the $16,100 standard deduction		−$295.00−$7,670.00	−$7,670.00
Social SecurityCapped at $184,500 of wages	6.20%	−$178.85−$4,650.00	−$4,650.00
Medicare	1.45%	−$41.83−$1,087.50	−$1,087.50
Indiana
IN income taxAfter the $1,000 personal exemption		−$83.96−$2,183.00	−$2,183.00
Total tax		−$599.64−$15,590.50	−$15,590.50
Net pay		$2,284.98$59,409.50	$59,409.50

Per paycheck, each line is its annual amount ÷ 26, rounded to the nearest cent.

What this means

On a salary of $75,000 you keep $59,410 — about 79% of what you earn. The remaining $15,591 is split across four separate deductions.

The largest is federal income tax at $7,670, roughly 49% of your total tax bill. Indiana's own income tax takes $2,183, which is less than the $5,738 taken for Social Security and Medicare.

Your next dollar of income would be taxed at 24.9% once federal and state are combined, while the rate you actually pay across the whole salary is 20.8%. That gap is why a raise never feels as large as the headline rate suggests — and why the effective rate, not the bracket you land in, is the number worth comparing between states.

Show the working, band by band

Every figure above is computed from published 2026 rates for the whole year, then divided across 26 paychecks.

Federal — on $58,900 taxable income

Band	Rate	Taxed here	Tax
$0 – $12,400	10%	$12,400	$1,240.00
$12,400 – $50,400	12%	$38,000	$4,560.00
$50,400 – $105,700	22%	$8,500	$1,870.00

Indiana — on $74,000 taxable income

Band	Rate	Taxed here	Tax
$0 and above	2.95%	$74,000	$2,183.00

Indiana tax at a glance, 2026

State income tax: 2.95% flat; Cut from 3.00% for 2026
Personal exemption: $1,000; Per taxpayer; no standard deduction
County income tax: 1% – 3%; All 92 counties — not included below
Payroll add-ons: None; No employee-side state levy

How Indiana income tax works

Indiana applies a flat 2.95% to taxable income, and allows very little to be taken off first.

There is no standard deduction. The only relief for most wage earners is a $1,000 personal exemption, plus $1,000 per dependent. A single filer on $75,000 is therefore taxed on $74,000 and pays about $2,183.

That combination — a low rate on a very wide base — is characteristic of Indiana. The headline 2.95% is among the lowest in the country, but because almost nothing is sheltered, the effective state rate is close to the headline rate at every income. There is no large untaxed band as in Ohio or Mississippi.

Every county levies its own tax

This is the fact that makes Indiana’s low state rate misleading, and it applies to everyone.

All 92 Indiana counties levy a local income tax. There is no county without one, so unlike Pennsylvania or Michigan — where the local tax depends on which municipality you are in — an Indiana resident always pays it. Rates typically run between 1% and 3%.

On a $75,000 salary, a 2% county rate is roughly $1,500 a year. Against the state’s $2,183, that means your county is collecting close to half again on top of what the state takes. Any figure describing Indiana as a 2.95% state without mentioning county tax is describing something no Indiana resident actually experiences.

The rate is fixed by where you lived on January 1 of the tax year — not where you work, and not where you move to later in the year. If you moved counties in February, the old county’s rate applies for the whole year.

So the figures on this page are complete for federal and state, and deliberately silent on county. Add roughly 1% to 3% of your income depending on where you live.

Where the Indiana rate is heading

Indiana has legislated a long, slow decline, so the figure depends heavily on which year you are looking at.

HB1001 of 2023 set the reductions that brought the rate from 3.15% down to 2.95% for 2026, with a further step to 2.90% in 2027. SB451, signed in April 2025, goes further: from 2030 the rate can fall in 0.05 point steps in even-numbered years, as low as 2.55%, provided revenue triggers are met.

That makes Indiana one of the more predictable states to plan around at state level — the direction is fixed in statute even where the timing depends on revenue. It also means older figures go stale quickly. Anything quoting 3.15% or 3.05% is describing 2023 or 2024.

County rates move independently and are set locally, so they do not follow the state trend.

Take-home pay at every salary in Indiana

After federal tax, the flat 2.95% state tax and FICA. County income tax is not included, for the reason above.

Annual take-home pay by gross salary · 2026
Gross salary	Total tax	Take-home (single)	Effective rate	Take-home (married)
$30,000	−$4,571	$25,430	15.2%	$26,879
$40,000	−$6,831	$33,170	17.1%	$35,039
$50,000	−$9,091	$40,910	18.2%	$42,979
$60,000	−$11,351	$48,650	18.9%	$50,859
$75,000	−$15,591	$59,410	20.8%	$62,469
$85,000	−$18,851	$66,150	22.2%	$70,209
$100,000	−$23,741	$76,260	23.7%	$81,819
$125,000	−$31,955	$93,046	25.6%	$101,169
$150,000	−$40,605	$109,396	27.1%	$118,819
$200,000	−$56,944	$143,057	28.5%	$153,480
$250,000	−$74,164	$175,837	29.7%	$190,152

What lands in your account each payday

On $75,000 a year in Indiana, filing single, split across the pay schedules employers actually use.

Net pay on $75,000 gross · single filer
Pay schedule	Gross	Net
Every week	$1,442	$1,142
Every two weeks	$2,885	$2,285
Twice a month	$3,125	$2,475
Every month	$6,250	$4,951

Dates that matter for the 2026 tax year

Indiana returns (Form IT-40) are due April 15, 2027, matching the federal deadline. County tax is reported on the same return rather than separately, using the county you lived in on January 1. Estimated payments, if required, fall quarterly in April, June, September and the following January.

Questions people ask

What is the Indiana income tax rate for 2026?: A flat 2.95%, reduced from 3.00% on January 1, 2026, under HB1001 of 2023. Indiana has no brackets — the same rate applies to every dollar of taxable income. That is the state portion only; your county levies its own on top.
Does Indiana have a standard deduction?: No. Indiana allows a personal exemption of $1,000 per taxpayer and $1,000 per dependent, and nothing else. There is no standard deduction, so almost all of an Indiana salary is exposed to the state rate.
Does this calculator include Indiana county tax?: No, and in Indiana that omission matters more than in most states, because there is no county without one. All 92 counties levy an income tax, typically between 1% and 3%, assessed on the county you lived in as of January 1. On a $75,000 salary a 2% county rate is about $1,500 a year — comparable to the $2,183 the state itself takes.
Which county's rate applies if I move?: The county you lived in on January 1 of the tax year, not where you work and not where you moved to later. Indiana fixes it on that date for the whole year.
Are Indiana payroll deductions taken from my paycheck?: Not by the state. Indiana unemployment insurance is employer-funded and the state runs no disability or paid family leave program. Beyond the state and county income tax, the only deductions are federal.
Is my data sent anywhere?: No. The calculation runs entirely in your browser. There is no account, and the salary you type is never sent to a server or stored. It never leaves your device.

Where these figures come from

Every Indiana number on this page was read from the documents below — the state's own, not a summary of them. Nothing here is estimated. If a figure looks wrong, the source is one click away, and we would rather you checked.

Individual Income Taxesin.gov
Indiana Department of Revenue
The flat rate for 2026, the $1,000 personal exemption, and that all 92 counties levy their own tax on top.