How Indiana taxes your paycheck
Indiana taxes wages at a flat 2.95% and a personal exemption of $1,000. Some Indiana cities or counties add a local income tax; enter that rate in the calculator if it applies to you. Every county adds a county income tax (about 0.5%–3%) withheld with state tax — add yours above.
Federal deductions are the same everywhere: income tax on earnings above the $16,100 standard deduction (single) using the 2026 brackets, 6.2% Social Security on the first $184,500, and 1.45% Medicare on everything.
Indiana take-home pay examples
Single filer, paid every two weeks, standard deduction, no pre-tax benefits:
| Salary | Federal tax | FICA | Indiana tax | Take-home / year | Per paycheck | Effective rate |
|---|---|---|---|---|---|---|
| $40,000 | $2,620 | $3,060 | $1,151 | $33,170 | $1,275.75 | 17.1% |
| $60,000 | $5,020 | $4,590 | $1,741 | $48,650 | $1,871.13 | 18.9% |
| $80,000 | $8,770 | $6,120 | $2,331 | $62,780 | $2,414.60 | 21.5% |
| $100,000 | $13,170 | $7,650 | $2,921 | $76,260 | $2,933.06 | 23.7% |
| $150,000 | $24,734 | $11,475 | $4,396 | $109,396 | $4,207.52 | 27.1% |
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Estimate for W-2 employees using the standard deduction. Doesn't include tax credits, itemised deductions or local taxes unless entered. Updated for tax year 2026.