Indiana uses a flat state income tax rate, which means Indiana taxable income is generally taxed at one statewide rate instead of a long set of progressive brackets. The state tax is only part of the paycheck calculation, though. Indiana is also known for county income taxes, which can add a local layer depending on where you live or work.
This page brings the Indiana income tax picture together in one place: the state tax rate, Indiana deductions and adjustments, county and local income tax treatment, and the combined federal, state, and FICA rate you actually face on your income.
Every table below is generated from current tax data, so the figures stay accurate year to year, and they match the numbers used by our payroll and income tax calculators.
Indiana state income tax brackets
Indiana uses a flat income tax for 2026: every filer pays 2.95% of Indiana taxable income, regardless of income level or filing status.
The rate applies to Indiana taxable income — income after the state's own deductions and exemptions, not your gross salary.
Indiana uses a flat income tax structure rather than a multi-bracket progressive system. The table above shows the current Indiana state income tax rate for each filing status. Even with a flat state rate, your combined tax rate can still rise as income increases because the federal income tax system is progressive and FICA has its own wage limits and surtax rules.
Indiana deductions and adjustments
| Filing Status | Standard Deduction | Personal Exemption |
|---|---|---|
| Single | $0 | $1,000 |
| Married Filing Jointly | $0 | $2,000 |
| Married Filing Separately | $0 | $1,000 |
| Head of Household | $0 | $1,000 |
These amounts are subtracted from income before Indiana's tax rates apply. They are separate from — and in addition to — the federal standard deduction.
Indiana taxable income does not always match federal taxable income. The state has its own deductions, exemptions, additions, subtractions, credits, and residency rules that can change how much income is subject to Indiana tax. The table above shows the Indiana deduction and adjustment rules stored in the PaycheckNet database.
Indiana county and local income taxes
| Locality | Resident Rate | Non-Resident Rate | Applies To |
|---|---|---|---|
| Allen County (Fort Wayne) | 1.48% | 1.48% | Earned income (wages) |
| Elkhart County | 2% | 2% | Earned income (wages) |
| Hamilton County | 1.1% | 1.1% | Earned income (wages) |
| Lake County | 1.5% | 1.5% | Earned income (wages) |
| Marion County (Indianapolis) | 2.02% | 2.02% | Earned income (wages) |
| Other IN county (average 1.6% LIT) | 1.6% | 1.6% | Earned income (wages) |
| St. Joseph County | 1.75% | 1.75% | Earned income (wages) |
| Tippecanoe County | 1.28% | 1.28% | Earned income (wages) |
| Vanderburgh County | 1.2% | 1.2% | Earned income (wages) |
Local rates apply to wages in addition to federal and state income tax. "Resident" is the rate for people who live in the locality; "non-resident" applies to people who only work there.
Every one of Indiana's 92 counties levies a local income tax (0.5%–3%); the eight most populous are listed individually and the "Other IN county" option carries the 1.6% statewide average. County rates change frequently — confirm your county's current rate.
Indiana local income tax is especially important because many counties have their own income tax rates. Depending on your residency and work location, county tax may apply on top of the statewide Indiana income tax. If the PaycheckNet database contains Indiana county or locality-specific income tax entries, they will appear in the table above.
What you actually pay in Indiana
| Gross Income | Federal | Indiana | FICA | Combined |
|---|---|---|---|---|
| Up to $1,000 | -7.65% | -0.77% | 7.65% | -0.77% |
| $1,000 – $16,100 | -4.82% | 2.47% | 7.65% | 5.3% |
| $16,100 – $28,500 | 10% | 2.95% | 7.65% | 20.6% |
| $28,500 – $66,500 | 12% | 2.95% | 7.65% | 22.6% |
| $66,500 – $121,800 | 22% | 2.95% | 7.65% | 32.6% |
| $121,800 – $184,500 | 24% | 2.95% | 7.65% | 34.6% |
| $184,500 – $200,000 | 24% | 2.95% | 1.45% | 28.4% |
| $200,000 – $217,875 | 24% | 2.95% | 2.35% | 29.3% |
| $217,875 – $272,325 | 32% | 2.95% | 2.35% | 37.3% |
| $272,325 – $656,700 | 35% | 2.95% | 2.35% | 40.3% |
| Over $656,700 | 37% | 2.95% | 2.35% | 42.3% |
Marginal rate = the tax on your NEXT dollar of gross income. Because the federal government and Indiana each subtract their own deductions before applying brackets, the ranges here are expressed in gross income — the two bracket tables cannot simply be added together.
FICA is the employee share of Social Security and Medicare. It applies from the first dollar, stops on wages above the Social Security cap, and rises again where the Additional Medicare surtax begins.
| Gross Income | Federal Tax | Indiana Tax | FICA | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|---|
| $30,000 | $1,420 | $856 | $2,295 | $4,571 | $25,430 | 15.2% |
| $50,000 | $3,820 | $1,446 | $3,825 | $9,091 | $40,910 | 18.2% |
| $75,000 | $7,670 | $2,183 | $5,738 | $15,591 | $59,410 | 20.8% |
| $100,000 | $13,170 | $2,921 | $7,650 | $23,741 | $76,260 | 23.7% |
| $150,000 | $24,734 | $4,396 | $11,475 | $40,605 | $109,396 | 27.1% |
| $200,000 | $36,734 | $5,871 | $14,339 | $56,944 | $143,057 | 28.5% |
| $300,000 | $68,134 | $8,821 | $16,689 | $93,644 | $206,356 | 31.2% |
| $500,000 | $138,134 | $14,721 | $21,389 | $174,244 | $325,756 | 34.8% |
Effective rate = total tax as a share of gross income. It is always lower than your top marginal rate, because only the last slice of income is taxed at the highest bracket.
The combined table shows what an Indiana resident really pays on their next dollar once federal tax, Indiana state tax, and FICA are stacked together. This is often more useful than looking at the state rate alone, because your paycheck is reduced by several layers of tax at the same time. If a county income tax applies to you, treat it as an additional local layer on top of the statewide calculation.
Social Security and Medicare
| Employee Rate | Wage Limit | |
|---|---|---|
| Social Security | 6.2% | First $184,500 of wages |
| Medicare | 1.45% | All wages (no cap) |
| Additional Medicare | 0.9% | Wages above $200,000 (single / head of household), $250,000 (married filing jointly), $125,000 (married filing separately) |
FICA comes out of every paycheck in every state and is separate from income tax. Employers pay a matching share on top of these employee rates; self-employed workers pay both halves through self-employment tax.
FICA applies the same way in Indiana as it does across the rest of the country. The table lists the current Social Security wage cap, the Medicare rate, and the additional Medicare surtax that higher earners pay.
Work out your Indiana take-home pay
To turn these tables into a practical paycheck estimate, use the payroll calculator and select Indiana as your state. To compare Indiana against another state, use the tax comparison calculator and keep the salary, filing status, and deductions consistent across both scenarios.
Frequently asked questions
Is Indiana income tax flat or progressive?
Indiana uses a flat state income tax rate rather than a multi-bracket progressive state income tax. The federal tax system is still progressive, so your combined tax rate can still change as income increases.
Does Indiana have county income tax?
Yes. Many Indiana counties have local income tax rates that can apply in addition to the statewide income tax. The local tax table on this page shows the county or locality entries available in the PaycheckNet database.
Do Indiana workers still pay Social Security and Medicare?
Yes. Indiana workers still pay FICA taxes, which include Social Security and Medicare. These apply separately from Indiana state and county income taxes and are included in the combined tables on this page.