Indiana Paycheck Calculator
In Indiana for 2026, a $75,000 salary takes home about $59,410 per year after federal income tax and FICA (Social Security and Medicare), and Indiana state income tax.
Based on a $75,000 salary in Indiana, single filer, paid every 2 weeks
$2,284.98
take-home per 2 weeks · $59,410/yr
Bracket by bracket: the federal tax inside your Indiana paycheck
| Bracket | Income taxed here | Tax |
|---|---|---|
| 10% ($0 – $12,400) | $12,400 | $1,240 |
| 12% ($12,400 – $50,400) | $38,000 | $4,560 |
| 22% ($50,400 – $105,700) | $8,500 | $1,870 |
Taxable income $58,900 after the $16,100 standard deduction. Your federal marginal rate is 22%, the federal tax on your next dollar earned.
Compare your take-home pay with Illinois, Ohio or Michigan
Which 2026 rules apply to your Indiana paycheck?
Tick the boxes that describe your pay. The Indiana pointers then show only those.
Tips: federally deductible, and deductible on your Indiana return too. Work out the tip deduction
Overtime: federally deductible, and deductible on your Indiana return too. Work out the overtime deduction
Bonuses: Indiana has no separate supplemental rate, so a bonus is withheld on the ordinary Indiana tables. Estimate the tax on a bonus in Indiana
Turning 65: the $6,000 federal senior deduction comes off your federal return; Indiana still applies its flat 2.95% to the same wages. Check the senior deduction
Use this free Indiana (IN) paycheck, payroll and income tax calculator to estimate your 2026 take-home pay after federal income tax, Social Security, Medicare, and Indiana's flat 2.95% state income tax.
Enter your own pay in the calculator to estimate your Indiana take-home pay for any salary or hourly wage.
How Indiana's flat 2.95% income tax hits your 2026 paycheck
Indiana levies a flat 2.95% state income tax for 2026, applied after the state allowance/deduction for your filing status. This calculator applies that on top of federal withholding and Social Security / Medicare to estimate your Indiana take-home pay.
For 2026, Indiana's state standard deduction is $1,000 for single filers and $2,000 for married couples filing jointly; after that, all remaining taxable income is taxed at the single flat rate of 2.95% — Indiana does not use graduated brackets for 2026. As a worked example, a single filer earning $60,000 pays about $1,741 in Indiana income tax (roughly 2.9% of gross) before federal tax and FICA.
What this estimate doesn't include: Estimate assumes a $1,000 personal exemption (single/HoH) / $2,000 (MFJ); dependent exemptions not modeled. Indiana county income taxes apply on top of the state rate and vary by county — not included here. City, county or school-district income taxes where they apply, court-ordered deductions, union dues, and anything else your specific employer withholds are not in this figure; your pay stub is the authority on those.
Estimates only, not tax advice. The section "What this estimate doesn't include" above lists what's left out; see also our terms and the corrections log.
One rate on every taxable dollar: Indiana's 2.95% flat tax (2026)
Indiana applies a single flat rate to taxable wages for 2026.
| Filing | Rate |
|---|---|
| All taxable income | 2.95% |
Indiana stays on the federal $7.25 minimum wage in 2026
$7.25/hour (≈$15,080/year full-time). Indiana's minimum wage equals the federal $7.25/hr and has been unchanged since 2009; no 2026 increase.
Local income taxes in Indiana
All 92 Indiana counties levy a local income tax (LIT), withheld by employers based on the employee's COUNTY OF RESIDENCE (not work county) as of Jan 1. 2026 county rates range roughly from 0.5% to 3.0%+. Six counties raised rates effective Jan 1, 2026. Marion (Indianapolis) ~2.02%, Hamilton ~1.1%, Allen ~1.59%. Official rates are in DOR Departmental Notice #1.
Two Indiana payroll quirks worth knowing
- Indiana's flat state individual income tax rate dropped to 2.95% effective Jan 1, 2026 (down from 3.00% in 2025), per DOR Departmental Notice #1 — one of the lowest flat-rate state income taxes in the country.
- Every one of Indiana's 92 counties imposes its own local income tax stacked on top of the state rate, and it is withheld based on where you LIVE on Jan 1, not where you work — so two coworkers at the same employer can have different total withholding.
Is overtime and tips tax-free in Indiana? Federally yes — and on the Indiana return too
Qualified overtime premium pay and tips are federally deductible for 2025–2028 (OBBBA caps & rules); FICA still applies.
Indiana state income tax: Indiana decouples for 2025. SEA 243 couples for 2026 ONLY and currently sunsets after 2026 — 2027–2028 are not yet conformed. (source: rsmus.com)
- Overtime: 2025 — not deductible on your Indiana return (still state-taxed); 2026–2028 — deductible on your Indiana return too.
- Tips: 2025 — not deductible on your Indiana return (still state-taxed); 2026–2028 — deductible on your Indiana return too.
Related: tips calculator · overtime calculator · overtime by state · tips by state.
Your paycheck vs the $71,959 Indiana median
| Median household income (2024 (ACS 1-year estimate)) | $71,959 |
| Take-home (single filer) | ≈$57,360 |
Beyond the paycheck: Indiana's 7% sales tax and property tax
| Sales tax | 7% (≈7% with local) |
| Property tax | ≈0.76% — 0.76% effective rate on owner-occupied housing — below the national average, around the middle-to-lower third of states. |
Indiana paycheck FAQ
Do cities or counties in Indiana take a local income tax out of paychecks?
All 92 Indiana counties levy a local income tax (LIT), withheld by employers based on the employee's COUNTY OF RESIDENCE (not work county) as of Jan 1. 2026 county rates range roughly from 0.5% to 3.0%+. Six counties raised rates effective Jan 1, 2026. Marion (Indianapolis) ~2.02%, Hamilton ~1.1%, Allen ~1.59%. Official rates are in DOR Departmental Notice #1.
Does Indiana have a state income tax in 2026?
Yes — a flat 2.95% on taxable wages in 2026, on top of federal tax and FICA.
Compare a paycheck next door: Illinois, Ohio & Michigan
| State | State income tax (2026) | Take-home on $75,000 (single) |
|---|---|---|
| Indiana | flat 2.95% | $59,410 |
| Illinois | flat 4.95% | $58,025 |
| Ohio | two brackets, 0%–2.75% | $59,914 |
| Michigan | flat 4.25% | $58,656 |
| Kentucky | flat 3.5% | $59,085 |
Those are the states next door. To see where Indiana lands against all of them at once, our take-home pay by state study runs an identical salary at two levels, $75,000 and $100,000, through the 2026 rules of every state and DC, except Arizona, California, District of Columbia, Idaho and Vermont, still on their 2025 tables, ranked from the most take-home pay to the least.
All state paycheck calculators →
Data compiled and maintained by Edmond Daher · Updated 2026-06-16