Arizona vs Indiana Taxes: Take-Home Pay Compared (2026)
On a $75,000 salary, a single filer keeps $547 more a year in Arizona than in Indiana ($46 a month).
Arizona
2.5% flat state income tax
$59,926
take-home on $75,000 · $4,994/month
12th of 51 states for take-home pay
Arizona paycheck calculator ›Indiana
2.95% flat state income tax
$59,380
take-home on $75,000 · $4,948/month
14th of 51 states for take-home pay
Indiana paycheck calculator ›Take-home pay in Arizona and Indiana by salary
| Salary | Arizona | Indiana | Difference |
|---|---|---|---|
| $40,000 | $33,529 | $33,140 | $389 more in Arizona |
| $50,000 | $41,314 | $40,880 | $434 more in Arizona |
| $60,000 | $49,099 | $48,620 | $479 more in Arizona |
| $75,000 | $59,926 | $59,380 | $547 more in Arizona |
| $100,000 | $76,889 | $76,230 | $659 more in Arizona |
| $125,000 | $93,788 | $93,016 | $772 more in Arizona |
| $150,000 | $110,250 | $109,366 | $884 more in Arizona |
| $200,000 | $144,136 | $143,027 | $1,109 more in Arizona |
Single filer, standard deduction, no local tax. To match $75,000 in Arizona you would need about $75,800 in Indiana; to match $75,000 in Indiana you would need about $74,200 in Arizona.
How Arizona and Indiana tax wages
| 2026 | Arizona | Indiana |
|---|---|---|
| Income tax | a flat 2.5% income tax | a flat 2.95% income tax |
| Top rate | 2.5% | 2.95% |
| Standard deduction | $8,350 single | None (exemptions or credits only) |
| State tax on $75k | $1,666 (2.2%) | $2,213 (3.0%) |
| Local wage taxes | No | Yes (11 modeled) |
| Reciprocity | None | Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin |
| 2026 change | No rate change | Indiana cut its flat rate from 3.0% to 2.95% on January 1, 2026, with 2.9% scheduled for 2027. |
Arizona vs Indiana: FAQ
Does Arizona or Indiana have lower income taxes in 2026?
On a $75,000 salary, a single filer keeps $547 more a year in Arizona than in Indiana ($46 a month). Arizona has a flat 2.5% income tax for 2026. Indiana has a flat 2.95% income tax for 2026.
What salary in Indiana equals $75,000 in Arizona?
To take home the same $59,926 that $75,000 leaves in Arizona, you would need about $75,800 in Indiana, based on income, payroll, and state taxes only. Housing and other living costs are not included.
How much more do high earners keep in Arizona than in Indiana?
At $150,000 the gap is $884 a year: $110,250 in Arizona versus $109,366 in Indiana. With flat or no state tax, the gap grows roughly in line with salary.
What if I live in Arizona and work in Indiana?
Arizona and Indiana do not have a reciprocity agreement, so Indiana withholds tax on wages earned there and Arizona generally gives residents a credit for tax paid to the other state. You effectively pay the higher of the two rates.
Do local taxes change the Arizona vs Indiana comparison?
Indiana has local wage taxes in places like Indianapolis (2.02% (Marion County)), Fort Wayne (1.59% (Allen County)), Evansville (1.25% (Vanderburgh County)). Those are on top of the statewide figures above, so check the city calculators if you live or work in one of them.