How Indiana taxes your paycheck in 2026
Indiana uses a flat 2.95% income tax. On top of that, every Indiana worker pays federal income tax plus 6.2% Social Security (on the first $184,500 of 2026 wages) and 1.45% Medicare with no cap. This calculator applies all of it at once, so the take-home figure is the real one.
Indiana income tax brackets, 2026
Applied to taxable income — that is, your wages after the Indiana standard deduction and personal exemption. Single filer figures shown.
| Rate | Taxable income (single) |
|---|---|
| 2.95% | $0 and above |
Standard deduction: none · Personal exemption: $1,000 single / $2,000 married.
What Indiana state tax costs at different salaries
Single filer, Indiana state income tax only — federal tax and FICA are on top of these figures.
| Annual salary | Indiana income tax | Effective rate |
|---|---|---|
| $50,000 | $1,446 | 2.89% |
| $75,000 | $2,183 | 2.91% |
| $100,000 | $2,921 | 2.92% |
| $150,000 | $4,396 | 2.93% |
Local income tax in Indiana
Some Indiana cities and counties levy their own income tax on top of the state rate. Pick yours from the dropdown above — options include Marion County / Indianapolis (2.02%), Allen County (1.59%), Hamilton County (1.10%), Other county — typical (1.60%).
How Indiana compares with neighbouring states
State income tax owed by a single filer on a $75,000 salary — Indiana against the states around it:
| State | Tax on $75,000 | Effective rate |
|---|---|---|
| Ohio | $1,280 | 1.71% |
| Indiana (this state) | $2,183 | 2.91% |
| Kentucky | $2,507 | 3.34% |
| Michigan | $2,937 | 3.92% |
| Illinois | $3,568 | 4.76% |
Indiana ranks second-lowest of these 5 at that salary, costing about $903 a year more than Ohio. Where you physically work usually decides which state withholds, so a short commute across a border can change your take-home meaningfully.
Why your effective Indiana rate isn't 2.95%
On a $75,000 salary the headline rate is 2.95%, but the real bite is about 2.91%. Two things cause the gap. First, Indiana shelters the first $1,000 of income before any tax applies.
Worth noting: Indiana's $1,000 of shelter is well below the federal standard deduction of $16,100, so you pay Indiana tax on roughly $15,100 more income than you pay federal tax on — about $445 a year in extra state tax at the top rate.
Local tax applies in Indiana. Some cities or counties add their own income tax on top of the state rate — select yours from the dropdown above, since it can exceed the state tax itself in a few places.
Federal taxes on top
Every Indiana worker also pays federal income tax plus 6.2% Social Security and 1.45% Medicare. Those rules are identical in all 50 states — see the main paycheck calculator for how FICA, the wage base, pre-tax deductions and FICA-exempt occupations work.
Nearby states
Compare Indiana with Illinois, Ohio, Michigan, Kentucky — or see the full list of all 50 states and DC.