Indiana tax summary for 2026
| Tax on wages | Flat rate |
|---|---|
| Starting point | Federal adjusted gross income |
| Rates (single) | 2.95% |
| Standard deduction | None |
| Personal exemption | Single $1,000 · Married filing jointly $2,000 · Head of household $1,000 · Married filing separately $1,000 · per dependent $2,500 — a deduction from income |
| Federal income tax deduction | Not allowed |
| Employee payroll taxes | None |
| Local income taxes | Yes — 92 in our data |
Indiana income tax brackets 2026
Rates apply to Indiana taxable income, after the deductions above. Married filing separately uses the single brackets unless the state publishes its own.
| Taxable income over | Up to | Rate |
|---|---|---|
| $0 | and up | 2.95% |
Local income taxes in Indiana
All 92 Indiana counties levy a county income tax on Indiana adjusted gross income. The county of residence as of January 1 determines the applicable rate for residents; nonresidents working in Indiana are taxed by their county of principal employment as of January 1. Rates below are from Departmental Notice #1 effective October 1, 2026 (R47/10-26). Boone County (*) changed effective October 1, 2026; all other counties reflect Jan 1, 2026 rates. Basis: state taxable income; applies to Indiana residents (taxed based on county of residence on Jan 1) and nonresidents (taxed based on county of principal employment on Jan 1).
| Jurisdiction | Resident rate | Nonresident rate |
|---|---|---|
| Adams | 1.6% | — |
| Allen | 1.59% | — |
| Bartholomew | 1.75% | — |
| Benton | 1.79% | — |
| Blackford | 2.5% | — |
| Boone | 1.71% | — |
| Brown | 2.523% | — |
| Carroll | 2.473% | — |
| Cass | 2.95% | — |
| Clark | 2% | — |
| Clay | 2.35% | — |
| Clinton | 2.65% | — |
| Crawford | 1.65% | — |
| Daviess | 1.5% | — |
| Dearborn | 1.4% | — |
| Decatur | 2.45% | — |
| DeKalb | 2.13% | — |
| Delaware | 1.5% | — |
| Dubois | 1.2% | — |
| Elkhart | 2% | — |
| Fayette | 2.82% | — |
| Floyd | 1.89% | — |
| Fountain | 2.1% | — |
| Franklin | 1.7% | — |
| Fulton | 2.88% | — |
| Gibson | 1.3% | — |
| Grant | 2.75% | — |
| Greene | 2.35% | — |
| Hamilton | 1.1% | — |
| Hancock | 1.94% | — |
| Harrison | 1% | — |
| Hendricks | 1.7% | — |
| Henry | 2.02% | — |
| Howard | 2.35% | — |
| Huntington | 1.95% | — |
| Jackson | 2.1% | — |
| Jasper | 2.864% | — |
| Jay | 2.5% | — |
| Jefferson | 1.03% | — |
| Jennings | 2.5% | — |
| Johnson | 1.4% | — |
| Knox | 1.7% | — |
| Kosciusko | 1% | — |
| LaGrange | 1.65% | — |
| Lake | 1.5% | — |
| LaPorte | 1.45% | — |
| Lawrence | 1.75% | — |
| Madison | 2.25% | — |
| Marion | 2.02% | — |
| Marshall | 1.25% | — |
| Martin | 2.5% | — |
| Miami | 2.54% | — |
| Monroe | 2.14% | — |
| Montgomery | 2.65% | — |
| Morgan | 2.72% | — |
| Newton | 1% | — |
| Noble | 1.75% | — |
| Ohio | 2% | — |
| Orange | 1.75% | — |
| Owen | 2.5% | — |
| Parke | 2.65% | — |
| Perry | 1.4% | — |
| Pike | 1.2% | — |
| Porter | 0.5% | — |
| Posey | 1.45% | — |
| Pulaski | 2.85% | — |
| Putnam | 2.3% | — |
| Randolph | 3% | — |
| Ripley | 2.38% | — |
| Rush | 2.15% | — |
| St. Joseph | 1.75% | — |
| Scott | 2.16% | — |
| Shelby | 1.7% | — |
| Spencer | 0.8% | — |
| Starke | 1.71% | — |
| Steuben | 1.99% | — |
| Sullivan | 1.7% | — |
| Switzerland | 1.45% | — |
| Tippecanoe | 1.28% | — |
| Tipton | 2.6% | — |
| Union | 2.75% | — |
| Vanderburgh | 1.25% | — |
| Vermillion | 1.5% | — |
| Vigo | 2% | — |
| Wabash | 2.9% | — |
| Warren | 2.12% | — |
| Warrick | 1% | — |
| Washington | 2% | — |
| Wayne | 1.25% | — |
| Wells | 2.1% | — |
| White | 2.32% | — |
| Whitley | 1.683% | — |
Worked example: $65,000, single, paid biweekly
Computed by the same engine as the calculator, with no pre-tax deductions and no local tax.
| Line | Per paycheck | Annual |
|---|---|---|
| Gross pay | $2,500.00 | $65,000 |
| Federal income tax | $216.15 | $5,620 |
| Social Security | $155.00 | $4,030 |
| Medicare | $36.25 | $943 |
| Indiana income tax | $72.62 | $1,888 |
| Take-home pay | $2,019.98 | $52,520 |
Effective tax rate 19.2%; tax on the next dollar earned 22.6%. Indiana taxable income is $64,000. Adding Adams local tax would cost $1,024 a year.
Second example: $120,000, married filing jointly, two children
Take-home $101,847 a year ($3,917.17 biweekly). Federal income tax $5,640 after a $4,400 Child Tax Credit, Social Security and Medicare $9,180, Indiana income tax $3,334.
How the Indiana estimate is calculated
- Start from federal adjusted gross income — wages minus traditional 401(k) and Section 125 deductions.
- Indiana has no standard deduction in our data. Subtract personal exemptions (dependents = the number of children you enter).
- Apply the flat rate (married filing separately uses the single brackets).
- If you pick a locality, add local tax on state taxable income.
- Divide the annual total by your number of paychecks.
What this Indiana calculator does not model
- County income tax (mandatory, rate depends on county of residence on Jan 1) — see local data
- Dependents who are not qualifying children get $1,000 instead of $2,500; first-year additional exemption and $3,000 adopted-child exemption; extra $1,000 for age 65+/blind (and $500 low-income 65+)
- Indiana deductions (renter's deduction, 529 contributions, etc.) and credits (EITC, unified tax credit for elderly)
Data notes
- Indiana adjusted gross income tax rate for 2026 is 2.95% (Departmental Notice #1, rev. Oct 2026).
- Exemptions (deductions): $1,000 each for taxpayer and spouse; each dependent child gets $1,000 plus the $1,500 additional dependent-child exemption = $2,500 (IC 6-3-1-3.5; Notice #1 Table B). FIXED: the previous file used $1,000 per dependent.
- Indiana starts from federal AGI with Indiana add-backs and deductions.
- Rate history: 3.15% (2023), 3.05% (2024), 3.00% (2025), 2.95% (2026).
Sources
- State income tax: Indiana Department of Revenue – Departmental Notice #1: How to Compute Withholding for State and County Income Tax (Effective Oct. 1, 2026, R47/10-26) (read 2026-10-07)
- State income tax: Indiana Code § 6-3-1-3.5 – Adjusted Gross Income definition and exemptions (read 2026-10-07)
- Local income tax: Departmental Notice #1 (R47/10-26) – How to Compute Withholding for State and County Income Tax – Indiana DOR (read 2026-10-07)
Federal figures come from the IRS and SSA; see the methodology page.
Compare nearby and similar states
Neighboring states: Illinois, Kentucky, Michigan, Ohio
States with a similar tax setup: Iowa, Pennsylvania, North Carolina, Colorado, Louisiana, Idaho
See every state side by side in the salary comparison by state, or browse all state paycheck calculators.