Indiana paycheck taxes at a glance
| State income tax | Flat 2.95% |
|---|---|
| Standard deduction | None |
| Personal exemption | $1,000 single, $2,000 joint |
| Per dependent | $2,500 exemption |
| Pre-tax deductions | 401(k), HSA and health premiums lower state tax too |
| Local income tax | Yes: 23 options in the calculator |
| State payroll deductions | None |
| Reciprocity | With KY, MI, OH, PA, WI |
| Figures | Tax year 2026 |
Every paycheck also has federal income tax, Social Security (6.2% up to $184,500) and Medicare (1.45%), worked out with the same 2026 IRS figures as ourmain paycheck calculator.
Worked examples
A $58,000 salary in Indianapolis (Marion County), single, paid every two weeks
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $2,230.77 | $58,000 |
| Federal income tax | − $183.85 | − $4,780 |
| Social Security and Medicare | − $170.65 | − $4,437 |
| Indiana income tax | − $64.67 | − $1,682 |
| Local: Marion (Indianapolis) County | − $44.28 | − $1,151 |
| Take-home pay | $1,767.31 | $45,950 |
Single, paid every two weeks (26 paychecks). Indiana taxable income is $57,000 and the state tax is $1,682, an effective 2.899% of gross pay. Only the $1,000 personal exemption comes off before both the 2.95% state rate and the 2.02% Marion County rate, so local tax adds about two thirds to the state bill.
A $110,000 household in Fort Wayne (Allen County), married filing jointly with two children
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $4,230.77 | $110,000 |
| 401(k) at 5% | − $211.54 | − $5,500 |
| Federal income tax | − $145.38 | − $3,780 |
| Social Security and Medicare | − $323.65 | − $8,415 |
| Indiana income tax | − $110.63 | − $2,876 |
| Local: Allen (Fort Wayne) County | − $59.63 | − $1,550 |
| Take-home pay | $3,379.94 | $87,879 |
Married filing jointly, 2 children, paid every two weeks (26 paychecks). Indiana taxable income is $97,500 and the state tax is $2,876, an effective 2.615% of gross pay. Two $1,000 personal exemptions and two $2,500 child exemptions come off before both taxes, and the 5% 401(k) deferral lowers the base further.
County tax depends on where you lived on January 1
Your county rate is fixed by the county you lived in on January 1 of the year. Moving in March does not change it until next year. If you lived outside Indiana on January 1 but worked here, the county where you worked on that date applies. Rates are set locally and can change on January 1 or October 1; Boone County, for example, changed its rate to 1.71% on October 1, 2026. Check Departmental Notice #1 for your county.
The state rate fell to 2.95% in 2026
Indiana has been cutting its flat rate a little each year under House Enrolled Act 1001 of 2023. It was 3% in 2025 and is 2.95% for 2026, which the Department of Revenue applied to withholding from January 1. County rates are set separately by each county and were not part of the cut. Because state and county tax share one base, a lower state rate never changes your county tax.
Reciprocity with five states
Indiana has reciprocal agreements with Kentucky, Michigan, Ohio, Pennsylvania and Wisconsin. Residents of those states who work in Indiana pay only their home-state tax (file Form WH-47 with your employer), although an Indiana county tax can still apply if your principal workplace was in Indiana on January 1. Illinois residents working in Indiana pay Indiana tax. See the Illinois and Ohio calculators.
Indiana vs. neighboring states
Take-home pay on a $75,000 salary, single, no pre-tax deductions and no local tax:
| State | Income tax | State tax + programs | Take-home |
|---|---|---|---|
| Indiana | Flat 2.95% | $2,183 | $59,410 |
| Illinois | Flat 4.95% | $3,568 | $58,025 |
| Michigan | Flat 4.25% | $2,937 | $58,656 |
| Ohio | 2.75% above $26,050 (single) | $1,619 | $59,974 |
| Kentucky | Flat 3.5% | $2,507 | $59,085 |
Where you work and where you live can both matter. See paycheck calculators for every state for the full comparison.