StateFigures

Indiana Paycheck Calculator

Estimate your take-home pay in Indiana after federal tax, FICA and Indiana's flat 2.95% state income tax, based on 2026 rates. Every Indiana county adds its own income tax of 0.5% to 3%, which is withheld from paychecks and is not included here.

Based on 2026 rates. Last verified August 25, 2026. By Auran.

Your pay

Dependents feed Indiana's exemptions or credits where it has them. Pre-tax deductions (401(k), health premiums) reduce income tax in this estimate but not Social Security or Medicare.

Take-home pay, every two weeks

$1,871.13

$48,650 a year after $11,351 in taxes. Effective total rate 18.92%.

Take-home 81.1%Withheld 18.9%
  • Take-home 81.1%
  • Federal income tax 8.4%
  • Social Security 6.2%
  • Medicare 1.5%
  • IN state income tax 2.9%
LinePer periodPer year
Gross pay$2,307.69$60,000.00
Federal income tax12% marginal rate−$193.08−$5,020.00
Social Security6.2% up to $184,500−$143.08−$3,720.00
Medicare1.45%−$33.46−$870.00
IN state income tax2.95% marginal rate−$66.94−$1,740.50
Net pay$1,871.13$48,649.50

Estimate based on 2026 standard withholding. Your actual paycheck depends on your W-4 elections, benefit deductions and any local taxes. Every Indiana county levies its own income tax, from about 0.5% to 3% (Marion County, which is Indianapolis, is 2.02%). County tax is withheld from every paycheck and is not included here. It is not tax advice.

How Indiana taxes a paycheck

Indiana's state rate fell from 3.0% to 2.95% on 1 January 2026, the latest step in a phase-down begun in 2023 (it was 3.23% in 2022) and set by SB 451 of 2025 to reach 2.9% in 2027. The rate is flat and applies after a $1,000 personal exemption per filer and $1,000 per dependent (plus an extra $1,500 for each qualifying child); Indiana has no standard deduction.

The state rate is only part of the story. All 92 Indiana counties levy a local income tax on residents, set by each county council, ranging from about 0.5% to 3%. Marion County (Indianapolis) is 2.02%, Allen County (Fort Wayne) 1.59%, Lake County 1.5% and Hamilton County 1.1%. The county tax is withheld with the state tax based on the county of residence on 1 January, and it typically adds more to a paycheck than the state's 2.95% removes in cuts. It is not included in this estimate because it depends on the county.

How much taxes are taken out of paychecks in Indiana?

On a $60,000 salary in 2026, a single filer in Indiana pays about $5,020 in federal income tax, $4,590 in Social Security and Medicare, and about $1,740 in Indiana state income tax, leaving roughly $48,650 a year or $1,871 every two weeks before county tax. A Marion County resident would pay a further $1,190 at 2.02%, bringing the state-and-local share to about 4.9% of gross.

The state share alone is 2.9% of gross pay and, because the exemption is small, it stays at about that level at every salary.

Indiana compared with its neighbours

Indiana's 2.95% is the lowest flat rate among its neighbours: Illinois is 4.95%, Michigan 4.25%, Kentucky 3.5% and Ohio 2.75% above $26,050. On a $60,000 single salary the state tax is about $1,740 in Indiana, $2,830 in Illinois, $2,300 in Michigan, $1,980 in Kentucky and $870 in Ohio.

Every one of those neighbours except Illinois also has local income taxes, so the fair comparison is state plus local. An Indianapolis resident at 2.95% plus 2.02% is close to a Columbus, Ohio resident at 2.75% plus the city's 2.5%, and to a Louisville resident at Kentucky's 3.5% plus 2.2%.

Withholding forms and filing status in Indiana

Indiana employers withhold from Form WH-4, which asks for the county of residence and the county of employment as of 1 January, because the county tax is withheld with the state tax; the residence county's rate applies, or the employment county's if the employee lives outside Indiana. Exemptions of $1,000 per person reduce the wages subject to both taxes. Filing status does not affect the flat rate.

Indiana has reciprocal agreements with Kentucky, Michigan, Ohio, Pennsylvania and Wisconsin, so residents of those states working in Indiana pay only their home state's tax (though they may still owe the Indiana county tax for the county where they work). There is no agreement with Illinois; Indiana residents commuting to Chicago pay Illinois tax and credit it against Indiana.

Net pay in Indiana at common salaries, 2026

Single filer, no dependents, no pre-tax deductions. Computed from the same rates as the calculator. Local taxes excluded.

Where a Indiana salary goes, 2026
$0$50k$100k$150k$200k$30k Take-home: $25,430 per year$30k Federal tax: $1,420 per year$30k FICA: $2,295 per year$30k IN tax: $856 per year$30k$25.4k$40k Take-home: $33,170 per year$40k Federal tax: $2,620 per year$40k FICA: $3,060 per year$40k IN tax: $1,151 per year$40k$33.2k$50k Take-home: $40,910 per year$50k Federal tax: $3,820 per year$50k FICA: $3,825 per year$50k IN tax: $1,446 per year$50k$40.9k$60k Take-home: $48,650 per year$60k Federal tax: $5,020 per year$60k FICA: $4,590 per year$60k IN tax: $1,741 per year$60k$48.6k$75k Take-home: $59,410 per year$75k Federal tax: $7,670 per year$75k FICA: $5,738 per year$75k IN tax: $2,183 per year$75k$59.4k$100k Take-home: $76,260 per year$100k Federal tax: $13,170 per year$100k FICA: $7,650 per year$100k IN tax: $2,921 per year$100k$76.3k$125k Take-home: $93,046 per year$125k Federal tax: $18,734 per year$125k FICA: $9,563 per year$125k IN tax: $3,658 per year$125k$93.0k$150k Take-home: $109,396 per year$150k Federal tax: $24,734 per year$150k FICA: $11,475 per year$150k IN tax: $4,396 per year$150k$109.4k$200k Take-home: $143,057 per year$200k Federal tax: $36,734 per year$200k FICA: $14,339 per year$200k IN tax: $5,871 per year$200k$143.1k
  • Take-home
  • Federal tax
  • FICA
  • IN tax
GrossFederalFICAIN taxNet per yearEvery two weeksEffective rate
$30,000$1,420$2,295$856$25,430$97815.2%
$40,000$2,620$3,060$1,151$33,170$1,27617.1%
$50,000$3,820$3,825$1,446$40,910$1,57318.2%
$60,000$5,020$4,590$1,741$48,650$1,87118.9%
$75,000$7,670$5,738$2,183$59,410$2,28520.8%
$100,000$13,170$7,650$2,921$76,260$2,93323.7%
$125,000$18,734$9,563$3,658$93,046$3,57925.6%
$150,000$24,734$11,475$4,396$109,396$4,20827.1%
$200,000$36,734$14,339$5,871$143,057$5,50228.5%

Indiana income tax rates, 2026

RateSingle, taxable income overMarried filing jointly, over
2.95%$0$0
Standard deduction:
none
Personal exemption:
$1,000 single, $2,000 married, $1,000 per dependent
  • Indiana's rate fell from 3.0% to 2.95% on 1 January 2026 under SB 451 (2025) and is scheduled to reach 2.9% in 2027.

Frequently asked questions

What is the Indiana income tax rate for 2026?
A flat 2.95%, down from 3.0% in 2025, plus a county income tax of about 0.5% to 3% depending on where you live. The state rate falls to 2.9% in 2027.
What is the Indiana county income tax?
A local income tax every county levies on its residents, withheld alongside the state tax. Marion County is 2.02%, Allen 1.59%, Lake 1.5%, Hamilton 1.1%. It is not included in this estimate.
How much is Indiana state tax on $60,000?
About $1,740 for a single filer in 2026 before county tax; about $2,930 including Marion County's 2.02%.
Does Indiana have a standard deduction?
No. A $1,000 exemption per person and per dependent, plus $1,500 per qualifying child, is the only amount excluded.

Sources for the Indiana figures

  1. Indiana Department of Revenue: Individual income taxesverified Aug 25, 2026
  2. Tax Foundation, State Individual Income Tax Rates and Brackets, 2026verified Aug 25, 2026
  3. IRS, Revenue Procedure 2025-32 (tax year 2026 inflation adjustments)verified Aug 25, 2026
  4. Social Security Administration, 2026 Social Security changes (COLA fact sheet)verified Aug 25, 2026

Paycheck calculators in neighbouring states

This page is an estimate for tax year 2026 based on published rates and standard withholding. It excludes local income taxes, W-4 adjustments, benefits and garnishments, and it is not tax advice. Read the methodology and disclaimer.