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Paycheck Stats
Paycheck Stats

Indiana income tax rate 2026

Official

Indiana rates, brackets and the tax on common salaries.

From Indiana Department of Revenue and IRS 
Rate
2.95%
Tax on $75,000
$2,183
2.9% effective
Tax on $100,000
$2,921
2.9% effective
Rank among taxing states
#38 of 42
by tax taken on $75,000, 1 takes the most

What is the Indiana income tax rate in 2026?

Indiana taxes wages at a flat 2.95% in 2026. On a $75,000 salary, Indiana income tax is $2,183, an effective rate of 2.91%.

How this is calculated
  1. The effective rate is the yearly state income tax divided by gross pay, after the state's deductions and exemptions.
  2. The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.

Indiana income tax brackets for 2026

Indiana has one flat rate of 2.95% for every filer, so there are no brackets: the same rate applies to every dollar of taxable income. Federal income tax comes on top, under the 2026 federal tax brackets.

Single

Indiana income tax brackets 2026, Single
Taxable income overRate
$02.95%

Married filing jointly

Indiana income tax brackets 2026, Married filing jointly
Taxable income overRate
$02.95%

Head of household

Indiana income tax brackets 2026, Head of household
Taxable income overRate
$02.95%

How much Indiana income tax do you pay on $100,000?

On $100,000 of wages, Indiana income tax is $2,921 in 2026, an effective rate of 2.92%. The table runs from $30,000 to $300,000.

0%1%2%3%2.9%
Indiana income tax by salary, single filer, 2026.
How this is calculated
  1. Each salary is single filer wages with no pre-tax deductions, through the state's rules for the year.
  2. The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.

What is the Indiana standard deduction in 2026?

Indiana has no standard deduction of its own. Instead, each filer gets a personal exemption of $1,000 in 2026.

Standard deduction, single
None
Married filing jointly
None
Personal exemption
$1,000

How did Indiana income tax change in 2026, and what changes in 2027?

Indiana cut its rate to 2.95% in 2026, from 3% in 2025. For 2027, it is 2.9% (announced).

Indiana income tax by year
Tax yearKindLowest rateTop rateStandard deduction, singleStatus
2025flat3%3%noneofficial
2026flat2.95%2.95%noneofficial
2027flat2.9%2.9%noneannounced

How does Indiana income tax compare with other states?

On $75,000, Indiana income tax ranks #38 of 42 states that tax wages, where #1 takes the most. The state income tax rates page compares all of them.

How this is calculated
  1. Each state's income tax on the same $75,000 salary, single filer, under its rules for 2026.
  2. States without a wage income tax are left out of this rank.
  3. The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.

Do Indiana cities or counties charge income tax?

Every one of the 92 Indiana counties taxes residents' wages, at 0.5% to 3%. The Indiana paycheck calculator adds the one you pick.

Indiana local income taxes
LocalityKindResident rateNote
Adams Countycounty1.6%1.6% county income tax for residents
Allen Countycounty1.59%1.59% county income tax for residents
Bartholomew Countycounty1.75%1.75% county income tax for residents
Benton Countycounty1.79%1.79% county income tax for residents
Blackford Countycounty2.5%2.5% county income tax for residents
Boone Countycounty1.7%1.7% county income tax for residents in 2026 (1.71% withheld from October 2026)
Brown Countycounty2.52%2.5234% county income tax for residents
Carroll Countycounty2.47%2.4733% county income tax for residents
Cass Countycounty2.95%2.95% county income tax for residents
Clark Countycounty2%2% county income tax for residents
Clay Countycounty2.35%2.35% county income tax for residents
Clinton Countycounty2.65%2.65% county income tax for residents
Crawford Countycounty1.65%1.65% county income tax for residents
Daviess Countycounty1.5%1.5% county income tax for residents
Dearborn Countycounty1.4%1.4% county income tax for residents
Decatur Countycounty2.45%2.45% county income tax for residents
DeKalb Countycounty2.13%2.13% county income tax for residents
Delaware Countycounty1.5%1.5% county income tax for residents
Dubois Countycounty1.2%1.2% county income tax for residents
Elkhart Countycounty2%2% county income tax for residents
Fayette Countycounty2.82%2.82% county income tax for residents
Floyd Countycounty1.89%1.89% county income tax for residents
Fountain Countycounty2.1%2.1% county income tax for residents
Franklin Countycounty1.7%1.7% county income tax for residents
Fulton Countycounty2.88%2.88% county income tax for residents
Gibson Countycounty1.3%1.3% county income tax for residents
Grant Countycounty2.75%2.75% county income tax for residents
Greene Countycounty2.35%2.35% county income tax for residents
Hamilton Countycounty1.1%1.1% county income tax for residents
Hancock Countycounty1.94%1.94% county income tax for residents
Harrison Countycounty1%1% county income tax for residents
Hendricks Countycounty1.7%1.7% county income tax for residents
Henry Countycounty2.02%2.02% county income tax for residents
Howard Countycounty2.35%2.35% county income tax for residents
Huntington Countycounty1.95%1.95% county income tax for residents
Jackson Countycounty2.1%2.1% county income tax for residents
Jasper Countycounty2.86%2.864% county income tax for residents
Jay Countycounty2.5%2.5% county income tax for residents
Jefferson Countycounty1.03%1.03% county income tax for residents
Jennings Countycounty2.5%2.5% county income tax for residents
Johnson Countycounty1.4%1.4% county income tax for residents
Knox Countycounty1.7%1.7% county income tax for residents
Kosciusko Countycounty1%1% county income tax for residents
LaGrange Countycounty1.65%1.65% county income tax for residents
Lake Countycounty1.5%1.5% county income tax for residents
LaPorte Countycounty1.45%1.45% county income tax for residents
Lawrence Countycounty1.75%1.75% county income tax for residents
Madison Countycounty2.25%2.25% county income tax for residents
Marion Countycounty2.02%2.02% county income tax for residents
Marshall Countycounty1.25%1.25% county income tax for residents
Martin Countycounty2.5%2.5% county income tax for residents
Miami Countycounty2.54%2.54% county income tax for residents
Monroe Countycounty2.14%2.14% county income tax for residents
Montgomery Countycounty2.65%2.65% county income tax for residents
Morgan Countycounty2.72%2.72% county income tax for residents
Newton Countycounty1%1% county income tax for residents
Noble Countycounty1.75%1.75% county income tax for residents
Ohio Countycounty2%2% county income tax for residents
Orange Countycounty1.75%1.75% county income tax for residents
Owen Countycounty2.5%2.5% county income tax for residents
Parke Countycounty2.65%2.65% county income tax for residents
Perry Countycounty1.4%1.4% county income tax for residents
Pike Countycounty1.2%1.2% county income tax for residents
Porter Countycounty0.5%0.5% county income tax for residents
Posey Countycounty1.45%1.45% county income tax for residents
Pulaski Countycounty2.85%2.85% county income tax for residents
Putnam Countycounty2.3%2.3% county income tax for residents
Randolph Countycounty3%3% county income tax for residents
Ripley Countycounty2.38%2.38% county income tax for residents
Rush Countycounty2.15%2.15% county income tax for residents
St. Joseph Countycounty1.75%1.75% county income tax for residents
Scott Countycounty2.16%2.16% county income tax for residents
Shelby Countycounty1.7%1.7% county income tax for residents
Spencer Countycounty0.8%0.8% county income tax for residents
Starke Countycounty1.71%1.71% county income tax for residents
Steuben Countycounty1.99%1.99% county income tax for residents
Sullivan Countycounty1.7%1.7% county income tax for residents
Switzerland Countycounty1.45%1.45% county income tax for residents
Tippecanoe Countycounty1.28%1.28% county income tax for residents
Tipton Countycounty2.6%2.6% county income tax for residents
Union Countycounty2.75%2.75% county income tax for residents
Vanderburgh Countycounty1.25%1.25% county income tax for residents
Vermillion Countycounty1.5%1.5% county income tax for residents
Vigo Countycounty2%2% county income tax for residents
Wabash Countycounty2.9%2.9% county income tax for residents
Warren Countycounty2.12%2.12% county income tax for residents
Warrick Countycounty1%1% county income tax for residents
Washington Countycounty2%2% county income tax for residents
Wayne Countycounty1.25%1.25% county income tax for residents
Wells Countycounty2.1%2.1% county income tax for residents
White Countycounty2.32%2.32% county income tax for residents
Whitley Countycounty1.68%1.6829% county income tax for residents

How is Indiana income tax withheld from a paycheck?

Employers withhold Indiana income tax from each paycheck, using the Form WH-4 each employee fills in. On a $75,000 salary paid every two weeks, that is $83.96 a paycheck.

$0$50$100$150$200WeeklyEvery two weeksTwice a monthMonthly$41.98$83.96$90.96$181.91

Employer withholding tables can differ from the yearly tax owed; the return settles the difference.

How this is calculated
  1. Employers withhold the state rate and the county rate on pay after the exemptions claimed on Form WH-4 (Departmental Notice #1), with no tips or overtime deduction. Paychecks here assume Form WH-4 claims yourself, your spouse when married, each dependent and each person 65 or older, plus the additional exemption for each child.

Questions people ask

How much Indiana tax is withheld from a bonus?

Employers can withhold Indiana tax on a bonus at a flat 2.95%. The return settles the actual tax on it.

Does Indiana tax overtime and tips?

Not the deductible part. Indiana follows the federal deductions for qualified tips and the extra half of overtime pay, within limits, from 2025 to 2028. For 2026 only, Indiana subtracts the same qualified tips and overtime deducted on the federal return, for both state and county tax.

Do 401(k) contributions lower Indiana income tax?

Yes. Traditional 401(k) contributions lower Indiana taxable wages, as they do for federal income tax.