Indiana vs Tennessee Taxes: Take-Home Pay Compared (2026)
On a $75,000 salary, a single filer keeps $2,213 more a year in Tennessee than in Indiana ($184 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 ›Tennessee
No state income tax on wages
$61,592
take-home on $75,000 · $5,133/month
1st of 51 states for take-home pay
Tennessee paycheck calculator ›Take-home pay in Indiana and Tennessee by salary
| Salary | Indiana | Tennessee | Difference |
|---|---|---|---|
| $40,000 | $33,140 | $34,320 | $1,180 more in Tennessee |
| $50,000 | $40,880 | $42,355 | $1,475 more in Tennessee |
| $60,000 | $48,620 | $50,390 | $1,770 more in Tennessee |
| $75,000 | $59,380 | $61,592 | $2,213 more in Tennessee |
| $100,000 | $76,230 | $79,180 | $2,950 more in Tennessee |
| $125,000 | $93,016 | $96,703 | $3,688 more in Tennessee |
| $150,000 | $109,366 | $113,791 | $4,425 more in Tennessee |
| $200,000 | $143,027 | $148,927 | $5,900 more in Tennessee |
Single filer, standard deduction, no local tax. To match $75,000 in Indiana you would need about $71,850 in Tennessee; to match $75,000 in Tennessee you would need about $78,300 in Indiana.
How Indiana and Tennessee tax wages
| 2026 | Indiana | Tennessee |
|---|---|---|
| Income tax | a flat 2.95% income tax | no state income tax |
| Top rate | 2.95% | 0% |
| Standard deduction | None (exemptions or credits only) | Not applicable |
| State tax on $75k | $2,213 (3.0%) | $0 (0.0%) |
| 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. | No rate change |
Indiana vs Tennessee: FAQ
Does Indiana or Tennessee have lower income taxes in 2026?
On a $75,000 salary, a single filer keeps $2,213 more a year in Tennessee than in Indiana ($184 a month). Indiana has a flat 2.95% income tax for 2026. Tennessee has no state income tax.
What salary in Tennessee equals $75,000 in Indiana?
To take home the same $59,380 that $75,000 leaves in Indiana, you would need about $71,850 in Tennessee, based on income, payroll, and state taxes only. Housing and other living costs are not included.
How much more do high earners keep in Tennessee than in Indiana?
At $150,000 the gap is $4,425 a year: $109,366 in Indiana versus $113,791 in Tennessee. With flat or no state tax, the gap grows roughly in line with salary.
Do local taxes change the Indiana vs Tennessee 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.