Indiana vs Texas Taxes: Take-Home Pay Compared (2026)
On a $75,000 salary, a single filer keeps $2,213 more a year in Texas 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 ›Texas
No state income tax on wages
$61,592
take-home on $75,000 · $5,133/month
1st of 51 states for take-home pay
Texas paycheck calculator ›Take-home pay in Indiana and Texas by salary
| Salary | Indiana | Texas | Difference |
|---|---|---|---|
| $40,000 | $33,140 | $34,320 | $1,180 more in Texas |
| $50,000 | $40,880 | $42,355 | $1,475 more in Texas |
| $60,000 | $48,620 | $50,390 | $1,770 more in Texas |
| $75,000 | $59,380 | $61,592 | $2,213 more in Texas |
| $100,000 | $76,230 | $79,180 | $2,950 more in Texas |
| $125,000 | $93,016 | $96,703 | $3,688 more in Texas |
| $150,000 | $109,366 | $113,791 | $4,425 more in Texas |
| $200,000 | $143,027 | $148,927 | $5,900 more in Texas |
Single filer, standard deduction, no local tax. To match $75,000 in Indiana you would need about $71,850 in Texas; to match $75,000 in Texas you would need about $78,300 in Indiana.
How Indiana and Texas tax wages
| 2026 | Indiana | Texas |
|---|---|---|
| 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 Texas: FAQ
Does Indiana or Texas have lower income taxes in 2026?
On a $75,000 salary, a single filer keeps $2,213 more a year in Texas than in Indiana ($184 a month). Indiana has a flat 2.95% income tax for 2026. Texas has no state income tax.
What salary in Texas 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 Texas, based on income, payroll, and state taxes only. Housing and other living costs are not included.
How much more do high earners keep in Texas than in Indiana?
At $150,000 the gap is $4,425 a year: $109,366 in Indiana versus $113,791 in Texas. With flat or no state tax, the gap grows roughly in line with salary.
Do local taxes change the Indiana vs Texas 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.