Indiana income tax rates for 2026
Indiana has a flat 2.95% rate. Rates apply to Indiana taxable income: federal adjusted gross income minus Indiana’s own deductions and exemptions.
| Rate | Single | Married filing jointly |
|---|---|---|
| 2.95% | All taxable income | All taxable income |
Indiana standard deduction and exemptions
| Item | Single | Married filing jointly |
|---|---|---|
| Personal exemption | $1,000 | $2,000 |
| Exemption per dependent | $2,500 | $2,500 |
Deductions and exemptions reduce the income Indiana taxes; credits reduce the tax itself.
How much Indiana income tax will I pay?
Estimated 2026 tax for a single filer with wage income, the standard deduction and no dependents:
| Wages | Indiana tax | State effective rate | Federal income tax | Total income tax | Combined rate |
|---|---|---|---|---|---|
| $40,000 | $1,151 | 2.88% | $2,620 | $3,771 | 9.4% |
| $60,000 | $1,741 | 2.9% | $5,020 | $6,761 | 11.3% |
| $80,000 | $2,331 | 2.91% | $8,770 | $11,101 | 13.9% |
| $100,000 | $2,921 | 2.92% | $13,170 | $16,091 | 16.1% |
| $150,000 | $4,396 | 2.93% | $24,734 | $29,130 | 19.4% |
| $250,000 | $7,346 | 2.94% | $51,304 | $58,650 | 23.5% |
At $100,000, for example, Indiana takes about $2,921 and the combined income tax bill is $16,091. Your marginal rate on the next dollar at that income is 24.95% (22% federal + 2.95% Indiana). These estimates apply Indiana’s brackets, standard deduction, exemptions and credits from our data; local taxes and rules the notes below mark as not modeled are left out.
How Indiana compares with neighboring states
On a $75,000 salary, a single filer pays $2,183 in Indiana income tax, the 14th-lowest among the 50 states and DC. The median across all of them is $2,588.
| State | State tax on $75,000 | Effective rate | Rates | National rank |
|---|---|---|---|---|
| Ohio | $1,619 | 2.16% | Flat 2.75% | 12 of 51 |
| Indiana | $2,183 | 2.91% | Flat 2.95% | 14 of 51 |
| Kentucky | $2,507 | 3.34% | Flat 3.5% | 23 of 51 |
| Michigan | $2,937 | 3.92% | Flat 4.25% | 34 of 51 |
| Illinois | $3,568 | 4.76% | Flat 4.95% | 47 of 51 |
Compare Indiana with Illinois, Kentucky, Michigan and Ohio.
Indiana tax rules to know
Key points from our 2026 Indiana data, compiled from the official sources listed at the end of this page:
- The flat rate fell from 3.0% to 2.95% on January 1, 2026; it is scheduled to drop to 2.9% in 2027.
- No standard deduction. Exemptions are $1,000 each for the taxpayer, spouse and each dependent. A qualifying dependent child gets an extra $1,500 (so $2,500 total, the value used here); other dependents get only $1,000. There is an extra $1,500 first-year exemption per qualifying dependent and $3,000 per adopted child.
- An additional $1,000 exemption applies for age 65+ and for blindness.
- Every county also levies a local income tax, based on county of residence on January 1.
Local income tax: All 92 counties levy a local income tax on Indiana taxable income, based on county of residence (or principal work county for nonresidents) on January 1. Rates as of Oct. 1, 2026 range from 0.5% (Porter) to 3.0% (Randolph); e.g., Marion (Indianapolis) 2.02%, Hamilton 1.1%, Lake 1.5%, Allen 1.59%.
More 2026 tax tools
See the 2026 federal brackets and standard deduction, estimate each paycheck with the paycheck calculator, or compare income tax in every state.
Frequently asked questions
What is the Indiana income tax rate for 2026?
Indiana has a flat 2.95% rate for 2026. Because the rate applies to taxable income after deductions and exemptions, the share of total income you pay is lower: about 2.91% for a single filer earning $75,000. At $100,000 of wages, a single filer would owe about $2,921 in Indiana income tax.
How much is Indiana income tax on $75,000?
A single filer with $75,000 in wages owes about $2,183 in Indiana income tax for 2026, based on Indiana taxable income of about $74,000. Federal income tax adds $7,670 and Social Security and Medicare $5,738, leaving about $59,410. A married couple earning $150,000 would owe about $4,366 in state tax.
What is the Indiana standard deduction for 2026?
Indiana does not offer a standard deduction in our 2026 data. Instead, a personal exemption of $1,000 for single filers ($2,000 married filing jointly) reduces taxable income. For a single filer earning $75,000, Indiana taxable income works out to about $74,000 in our estimate. See the rules section on this page for income limits that can reduce these amounts.
Does Indiana have local income taxes?
All 92 counties levy a local income tax on Indiana taxable income, based on county of residence (or principal work county for nonresidents) on January 1. Rates as of Oct. 1, 2026 range from 0.5% (Porter) to 3.0% (Randolph); e.g., Marion (Indianapolis) 2.02%, Hamilton 1.1%, Lake 1.5%, Allen 1.59%. This calculator does not add local taxes.
How does Indiana income tax compare with nearby states?
On a $75,000 salary, a single filer pays about $2,183 in Indiana income tax, the 14th-lowest among the 50 states and DC. Among neighbors, Ohio would take $1,619 and Illinois $3,568. The national median is $2,588. Income tax is only one part of the picture; sales and property taxes also differ by state.
Is this Indiana tax estimate exact?
It is an estimate. We apply Indiana’s 2026 brackets, standard deduction, exemptions and credits to your income, starting from federal adjusted gross income. We do not model every Indiana subtraction, credit or phase-out, or local income taxes, and federal figures leave out the AMT and the QBI deduction. Use it for planning and check your actual return or Indiana’s tax agency for final numbers.