Indiana Take-Home Pay Calculator

Indiana has one rate for everyone: 2.95% for 2026, after a cut from 3.0% on January 1. Another step down to 2.9% is already scheduled for 2027. Because the rate is flat, a cashier and a surgeon pay the same share of each extra dollar to the state.

There is no standard deduction. Instead, Indiana starts from federal adjusted gross income and lets each filer subtract a $1,000 personal exemption, which does not shrink as income rises. A married couple filing jointly subtracts $2,000. Dependents add a separate exemption, and a few Indiana-specific deductions, such as one for rent paid on your Indiana home, can lower the bill when you file.

The small exemption is why the effective rate sits close to the headline rate at every salary: 2.85% at $30,000 and 2.94% at $250,000. Starting from federal AGI also means traditional 401(k), HSA, and pre-tax health premiums come off the top before the 2.95% applies.

Take a single filer earning $75,000. Subtract the $1,000 exemption and $74,000 is taxable in Indiana. At 2.95%, that comes to $2,183 of state income tax, an effective rate of 2.91%.

On the federal side, the $16,100 standard deduction leaves $58,900 of taxable income. The first $12,400 is taxed at 10%, the next $38,000 at 12%, and the last $8,500 at 22%, for $7,670. Social Security takes $4,650 and Medicare $1,088. Take-home pay is $59,409 a year, or $4,951 a month, before county tax. The Indiana $75,000 salary breakdown shows each pay period.

Double the salary to $150,000 and the state bill is $4,396, still only 2.93% of pay, leaving $109,395 before county tax.

All 92 Indiana counties levy a local income tax, and the rates vary more than most people expect. The county rate applies to the same base as the state tax, after the $1,000 exemption, so at $75,000 it falls on $74,000. At $75,000, Marion County's 2.02% costs $1,495 in Indianapolis, Monroe County's 2.14% costs $1,584 in Bloomington, and Madison County's 2.25% costs $1,665 in Anderson. Vigo County (Terre Haute) charges 2% for $1,480.

Other large counties are lighter. Allen County's 1.59% costs $1,177 in Fort Wayne, St. Joseph County's 1.75% costs $1,295 in South Bend, and Lake County's 1.5% costs $1,110 in Hammond and Gary. Tippecanoe County (Lafayette) charges 1.28%, or $947, and Vanderburgh County (Evansville) 1.25%, or $925. See the Indianapolis paycheck calculator for the combined state and county picture.

The county that taxes you is set once a year. If you lived in Indiana on January 1, you pay your county of residence's rate for the whole year, even if you move in March. If you lived outside Indiana on January 1 but worked here, you pay the rate of the county where you worked on that date. The state figures on this page leave county tax out, so add your county's amount to them.

Indiana employers withhold state and county tax using Form WH-4, which asks for your county of residence and your county of principal employment as of January 1. If you move between counties, the new county applies starting the next January 1, so update WH-4 then. An outdated county code can leave you owing county tax when you file.

Indiana has reciprocity with Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin. Residents of those states who work in Indiana pay state income tax only to their home state and give their employer Form WH-47, the Certificate of Residence, to stop Indiana state withholding. The agreements do not cover county tax, so the county where they worked on January 1 still applies. The reverse also holds: a Hoosier commuting to Louisville or Toledo owes Indiana, not Kentucky or Ohio, though Kentucky occupational and Ohio city taxes can still apply at the work site.

Illinois is not on the list. Residents of Lake and Porter counties who commute into Chicago have Illinois tax withheld, then claim a credit on the Indiana return for tax paid to Illinois. The credit covers state tax only, so Indiana county tax is still due at home.

A single $75,000 earner keeps $59,409 in Indiana before county tax, 14th among the 50 states and DC. That beats Kentucky by $324, Michigan by $754, and Illinois by $1,385, whose 4.95% flat rate takes $3,568. Ohio is the one neighbor that leaves more in your pocket at the state level, $895 more, thanks to its 0% band. Compare the two directly on Indiana vs Illinois.

Those state-level gaps shrink or flip once local taxes enter. Kentucky, Ohio, and Michigan all have city or occupational taxes of their own, while Illinois has none on wages. Against a state with no income tax, where the same worker takes home $61,592, Indiana costs $2,183 a year before county tax.