Indiana Paycheck Calculator 2026
Calculate your Indiana take-home pay after federal, state, FICA taxes.
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Indiana Income Tax Overview 2026
Indiana's income tax rate is Flat 3.05% (top rate: 3.05%). Indiana has one of the lowest flat income tax rates at 3.05%. However, most Indiana counties also levy an additional county income tax ranging from 0.5% to 2.9%, which adds to the total burden. The low state rate combined with a moderate cost of living makes Indiana attractive for workers.
Indiana Tax Quick Facts
- State Income Tax: Flat 3.05%
- State Sales Tax: 7%
- Local Taxes: County income taxes range from 0.5% to 2.9% (most counties ~1.5%).
- Median Household Income: $58,235
How Your Indiana Paycheck Is Calculated
Your take-home pay in Indiana is calculated by subtracting the following from your gross pay:
- Federal Income Tax: Based on 2026 brackets (10% to 37%), after the standard deduction ($15,000 single / $30,000 married).
- Social Security Tax: 6.2% on the first $184,500 of earnings.
- Medicare Tax: 1.45% on all earnings, plus 0.9% on income above $200,000.
- Indiana State Tax: Flat 3.05% on your taxable income.
Tips to Maximize Your Indiana Take-Home Pay
Consider maximizing pre-tax deductions like 401(k) contributions (up to $24,500 in 2026) and HSA contributions ($4,400 individual / $8,750 family). These reduce your taxable income, lowering both federal and state taxes. If you receive a large bonus, be aware it may be withheld at a flat 22% federal rate plus applicable state taxes.
Frequently Asked Questions
Indiana has income tax rates of Flat 3.05% for 2026. Indiana has one of the lowest flat income tax rates at 3.
Use the calculator above to get an exact estimate. A $58,235 salary in Indiana will have federal income tax, Social Security (6.2%), and Medicare (1.45%) deducted, plus Indiana state tax at Flat 3.05%.
Indiana's state sales tax rate is 7%. County income taxes range from 0.5% to 2.9% (most counties ~1.5%).