Indianapolis tax guide
At a $75,000 salary, working in Indianapolis costs an extra $1,215/year in local taxes compared to a Indiana location with no local tax, bringing annual take-home down to $58,090.
Key tax highlights
Payroll
- Indianapolis's local tax is county-based, so resident and work-location treatment may differ.
- The county rate applies on top of Indiana state withholding and federal payroll taxes.
Local taxes
- Indianapolis's local tax is administered at the county level at 1.62% / 0.41% (Marion County).
- County-based rates can differ from city-specific taxes in neighboring jurisdictions.
Salary examples
Take-home estimates including local tax as a separate line. At $75,000, the local tax adds $1,215 per year. Use the calculator above with your actual salary for a precise estimate.
| Salary | Federal | State | Local | FICA | Take-Home | Rate |
|---|---|---|---|---|---|---|
| $50,000 | $3,820 | $1,525 | $810 | $3,825 | $40,020 | 80.0% |
| $75,000 | $7,670 | $2,287 | $1,215 | $5,738 | $58,090 | 77.5% |
| $100,000 | $13,170 | $3,050 | $1,620 | $7,650 | $74,510 | 74.5% |
| $150,000 | $24,734 | $4,575 | $2,430 | $11,475 | $106,786 | 71.2% |
Resident and work caveats
- Indianapolis local tax treatment can depend on whether you are taxed as a resident, a commuter, or both under local rules.
- Use the calculator as an estimate and verify edge cases when your home and work locations differ.
Other Indiana city pages
| City | Local rate |
|---|---|
| Fort Wayne | 1.59% (Allen County) |
| South Bend | 1.75% (St. Joseph County) |
| Evansville | 1% (Vanderburgh County) |
| Bloomington | 1.345% (Monroe County) |
