Indiana vs North Carolina Taxes: Take-Home Pay Compared (2026)
On a $75,000 salary, a single filer keeps $780 more a year in Indiana than in North Carolina ($65 a month).
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 ›North Carolina
3.99% flat state income tax
$58,600
take-home on $75,000 · $4,883/month
34th of 51 states for take-home pay
North Carolina paycheck calculator ›Take-home pay in Indiana and North Carolina by salary
| Salary | Indiana | North Carolina | Difference |
|---|---|---|---|
| $40,000 | $33,140 | $32,724 | $416 more in Indiana |
| $50,000 | $40,880 | $40,360 | $520 more in Indiana |
| $60,000 | $48,620 | $47,996 | $624 more in Indiana |
| $75,000 | $59,380 | $58,600 | $780 more in Indiana |
| $100,000 | $76,230 | $75,190 | $1,040 more in Indiana |
| $125,000 | $93,016 | $91,716 | $1,300 more in Indiana |
| $150,000 | $109,366 | $107,806 | $1,560 more in Indiana |
| $200,000 | $143,027 | $140,947 | $2,080 more in Indiana |
Single filer, standard deduction, no local tax. To match $75,000 in Indiana you would need about $76,150 in North Carolina; to match $75,000 in North Carolina you would need about $73,850 in Indiana.
How Indiana and North Carolina tax wages
| 2026 | Indiana | North Carolina |
|---|---|---|
| Income tax | a flat 2.95% income tax | a flat 3.99% income tax |
| Top rate | 2.95% | 3.99% |
| Standard deduction | None (exemptions or credits only) | $12,750 single |
| State tax on $75k | $2,213 (3.0%) | $2,993 (4.0%) |
| Local wage taxes | Yes (11 modeled) | No |
| Reciprocity | Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin | None |
| 2026 change | Indiana cut its flat rate from 3.0% to 2.95% on January 1, 2026, with 2.9% scheduled for 2027. | North Carolina finished its phasedown, cutting the flat rate from 4.25% to 3.99% for 2026. |
Indiana vs North Carolina: FAQ
Does Indiana or North Carolina have lower income taxes in 2026?
On a $75,000 salary, a single filer keeps $780 more a year in Indiana than in North Carolina ($65 a month). Indiana has a flat 2.95% income tax for 2026. North Carolina has a flat 3.99% income tax for 2026.
What salary in North Carolina equals $75,000 in Indiana?
To take home the same $59,380 that $75,000 leaves in Indiana, you would need about $76,150 in North Carolina, based on income, payroll, and state taxes only. Housing and other living costs are not included.
How much more do high earners keep in Indiana than in North Carolina?
At $150,000 the gap is $1,560 a year: $109,366 in Indiana versus $107,806 in North Carolina. With flat or no state tax, the gap grows roughly in line with salary.
What if I live in Indiana and work in North Carolina?
Indiana and North Carolina do not have a reciprocity agreement, so North Carolina withholds tax on wages earned there and Indiana 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 Indiana vs North Carolina 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.