Indiana income tax rate 2026
OfficialIndiana rates, brackets and the tax on common salaries.
- 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
- The effective rate is the yearly state income tax divided by gross pay, after the state's deductions and exemptions.
- 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
| Taxable income over | Rate |
|---|---|
| $0 | 2.95% |
Married filing jointly
| Taxable income over | Rate |
|---|---|
| $0 | 2.95% |
Head of household
| Taxable income over | Rate |
|---|---|
| $0 | 2.95% |
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.
How this is calculated
- Each salary is single filer wages with no pre-tax deductions, through the state's rules for the year.
- 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).
| Tax year | Kind | Lowest rate | Top rate | Standard deduction, single | Status |
|---|---|---|---|---|---|
| 2025 | flat | 3% | 3% | none | official |
| 2026 | flat | 2.95% | 2.95% | none | official |
| 2027 | flat | 2.9% | 2.9% | none | announced |
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
- Each state's income tax on the same $75,000 salary, single filer, under its rules for 2026.
- States without a wage income tax are left out of this rank.
- 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.
| Locality | Kind | Resident rate | Note |
|---|---|---|---|
| Adams County | county | 1.6% | 1.6% county income tax for residents |
| Allen County | county | 1.59% | 1.59% county income tax for residents |
| Bartholomew County | county | 1.75% | 1.75% county income tax for residents |
| Benton County | county | 1.79% | 1.79% county income tax for residents |
| Blackford County | county | 2.5% | 2.5% county income tax for residents |
| Boone County | county | 1.7% | 1.7% county income tax for residents in 2026 (1.71% withheld from October 2026) |
| Brown County | county | 2.52% | 2.5234% county income tax for residents |
| Carroll County | county | 2.47% | 2.4733% county income tax for residents |
| Cass County | county | 2.95% | 2.95% county income tax for residents |
| Clark County | county | 2% | 2% county income tax for residents |
| Clay County | county | 2.35% | 2.35% county income tax for residents |
| Clinton County | county | 2.65% | 2.65% county income tax for residents |
| Crawford County | county | 1.65% | 1.65% county income tax for residents |
| Daviess County | county | 1.5% | 1.5% county income tax for residents |
| Dearborn County | county | 1.4% | 1.4% county income tax for residents |
| Decatur County | county | 2.45% | 2.45% county income tax for residents |
| DeKalb County | county | 2.13% | 2.13% county income tax for residents |
| Delaware County | county | 1.5% | 1.5% county income tax for residents |
| Dubois County | county | 1.2% | 1.2% county income tax for residents |
| Elkhart County | county | 2% | 2% county income tax for residents |
| Fayette County | county | 2.82% | 2.82% county income tax for residents |
| Floyd County | county | 1.89% | 1.89% county income tax for residents |
| Fountain County | county | 2.1% | 2.1% county income tax for residents |
| Franklin County | county | 1.7% | 1.7% county income tax for residents |
| Fulton County | county | 2.88% | 2.88% county income tax for residents |
| Gibson County | county | 1.3% | 1.3% county income tax for residents |
| Grant County | county | 2.75% | 2.75% county income tax for residents |
| Greene County | county | 2.35% | 2.35% county income tax for residents |
| Hamilton County | county | 1.1% | 1.1% county income tax for residents |
| Hancock County | county | 1.94% | 1.94% county income tax for residents |
| Harrison County | county | 1% | 1% county income tax for residents |
| Hendricks County | county | 1.7% | 1.7% county income tax for residents |
| Henry County | county | 2.02% | 2.02% county income tax for residents |
| Howard County | county | 2.35% | 2.35% county income tax for residents |
| Huntington County | county | 1.95% | 1.95% county income tax for residents |
| Jackson County | county | 2.1% | 2.1% county income tax for residents |
| Jasper County | county | 2.86% | 2.864% county income tax for residents |
| Jay County | county | 2.5% | 2.5% county income tax for residents |
| Jefferson County | county | 1.03% | 1.03% county income tax for residents |
| Jennings County | county | 2.5% | 2.5% county income tax for residents |
| Johnson County | county | 1.4% | 1.4% county income tax for residents |
| Knox County | county | 1.7% | 1.7% county income tax for residents |
| Kosciusko County | county | 1% | 1% county income tax for residents |
| LaGrange County | county | 1.65% | 1.65% county income tax for residents |
| Lake County | county | 1.5% | 1.5% county income tax for residents |
| LaPorte County | county | 1.45% | 1.45% county income tax for residents |
| Lawrence County | county | 1.75% | 1.75% county income tax for residents |
| Madison County | county | 2.25% | 2.25% county income tax for residents |
| Marion County | county | 2.02% | 2.02% county income tax for residents |
| Marshall County | county | 1.25% | 1.25% county income tax for residents |
| Martin County | county | 2.5% | 2.5% county income tax for residents |
| Miami County | county | 2.54% | 2.54% county income tax for residents |
| Monroe County | county | 2.14% | 2.14% county income tax for residents |
| Montgomery County | county | 2.65% | 2.65% county income tax for residents |
| Morgan County | county | 2.72% | 2.72% county income tax for residents |
| Newton County | county | 1% | 1% county income tax for residents |
| Noble County | county | 1.75% | 1.75% county income tax for residents |
| Ohio County | county | 2% | 2% county income tax for residents |
| Orange County | county | 1.75% | 1.75% county income tax for residents |
| Owen County | county | 2.5% | 2.5% county income tax for residents |
| Parke County | county | 2.65% | 2.65% county income tax for residents |
| Perry County | county | 1.4% | 1.4% county income tax for residents |
| Pike County | county | 1.2% | 1.2% county income tax for residents |
| Porter County | county | 0.5% | 0.5% county income tax for residents |
| Posey County | county | 1.45% | 1.45% county income tax for residents |
| Pulaski County | county | 2.85% | 2.85% county income tax for residents |
| Putnam County | county | 2.3% | 2.3% county income tax for residents |
| Randolph County | county | 3% | 3% county income tax for residents |
| Ripley County | county | 2.38% | 2.38% county income tax for residents |
| Rush County | county | 2.15% | 2.15% county income tax for residents |
| St. Joseph County | county | 1.75% | 1.75% county income tax for residents |
| Scott County | county | 2.16% | 2.16% county income tax for residents |
| Shelby County | county | 1.7% | 1.7% county income tax for residents |
| Spencer County | county | 0.8% | 0.8% county income tax for residents |
| Starke County | county | 1.71% | 1.71% county income tax for residents |
| Steuben County | county | 1.99% | 1.99% county income tax for residents |
| Sullivan County | county | 1.7% | 1.7% county income tax for residents |
| Switzerland County | county | 1.45% | 1.45% county income tax for residents |
| Tippecanoe County | county | 1.28% | 1.28% county income tax for residents |
| Tipton County | county | 2.6% | 2.6% county income tax for residents |
| Union County | county | 2.75% | 2.75% county income tax for residents |
| Vanderburgh County | county | 1.25% | 1.25% county income tax for residents |
| Vermillion County | county | 1.5% | 1.5% county income tax for residents |
| Vigo County | county | 2% | 2% county income tax for residents |
| Wabash County | county | 2.9% | 2.9% county income tax for residents |
| Warren County | county | 2.12% | 2.12% county income tax for residents |
| Warrick County | county | 1% | 1% county income tax for residents |
| Washington County | county | 2% | 2% county income tax for residents |
| Wayne County | county | 1.25% | 1.25% county income tax for residents |
| Wells County | county | 2.1% | 2.1% county income tax for residents |
| White County | county | 2.32% | 2.32% county income tax for residents |
| Whitley County | county | 1.68% | 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.
Employer withholding tables can differ from the yearly tax owed; the return settles the difference.
How this is calculated
- 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.