Calculate your take-home pay in The Hoosier State. Indiana income tax rate: 3%.
Indiana levies a flat 2.95% state income tax for 2025, one of the lowest flat rates nationally. However, Indiana counties also levy their own income taxes ranging from 0.5% to 2.9%, making the total rate vary by county. Indiana uses a personal exemption of $1,000 rather than a standard deduction.
| Item | Per Paycheck | Monthly | Annual |
|---|---|---|---|
| Gross Pay | - | - | - |
| Federal Income Tax | - | - | - |
| Indiana State Tax | $0 | $0 | $0 |
| Social Security | - | - | - |
| Medicare | - | - | - |
| 401(k) + Pre-Tax | - | - | - |
| Take-Home Pay | - | - | - |
Indiana has a flat income tax rate of 3.05%. This calculator estimates your take-home pay after federal income tax, state income tax, Social Security, Medicare, and any pre-tax deductions like 401(k) contributions. Enter your salary or hourly wage above to see a detailed breakdown of your paycheck.
Indiana has one of the lowest flat income tax rates in the country at 3.05%. However, most Indiana counties also levy a local income tax ranging from 0.5% to 2.9%, which can significantly increase the total state/local tax burden. The combined state plus county rate typically ranges from 3.55% to 5.95%. Check your specific county rate for an accurate paycheck estimate.
Regardless of state taxes, all Indiana workers pay federal income tax using the 2026 brackets: 10% on the first $11,925 of taxable income (single), 12% up to $48,475, 22% up to $103,350, 24% up to $197,300, 32% up to $250,525, 35% up to $626,350, and 37% on income above that. The standard deduction is $15,000 for single filers and $30,000 for married filing jointly in 2026.
All workers in Indiana pay Social Security tax at 6.2% on wages up to $176,100 (2026) and Medicare tax at 1.45% on all wages. An additional 0.9% Medicare surtax applies to wages over $200,000 for single filers. These federal payroll taxes apply uniformly regardless of which state you live in.
Pre-tax deductions reduce your taxable income for both federal and state purposes. Contributing to a 401(k) (up to $24,500 in 2026, plus $8,000 catch-up if 50+) lowers both your federal and IN state tax bill. Health Savings Account (HSA) contributions ($4,300 individual, $8,550 family in 2026) are also pre-tax. Review your W-4 withholding: if you receive a large refund each year, you may be overwithholding, which means less money in each paycheck. The Tax Bracket Calculator shows your federal marginal and effective rates.
Indiana's flat 3.05% state income tax is among the lowest of states that collect income tax, but nearly every Indiana county adds a local income tax of 0.5-2.9% on top. Your actual rate depends heavily on which county you live in. This calculator accounts for the state rate; check your county rate for the complete picture.
Indiana's 3.05% state rate is low, but county income taxes add 0.5-2.9% on top. Marion County (Indianapolis) adds 2.02%, making the effective rate about 5%. Hamilton County (Carmel, Fishers) adds 1.25%. Always check your specific county rate when estimating take-home pay.