Indiana income tax in 2026
Indiana has a flat 2.95% income tax. Traditional 401(k) contributions lower your Indiana taxable income as well as your federal taxable income. Personal exemptions: $1,000 single, $2,000 married filing jointly, $2,500 per dependent.
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%. These are not included in the calculator.
Indiana rules and notes
- 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.
Indiana take-home pay by salary
Single filer, paid every two weeks, 2026 rules, standard deduction and no pre-tax deductions; includes Indiana income tax but not local taxes.
| Salary | Federal income tax | Social Security + Medicare | Indiana income tax | Take-home per year | Per bi-weekly paycheck |
|---|---|---|---|---|---|
| $40,000 | $2,620 | $3,060 | $1,151 | $33,170 | $1,275.75 |
| $50,000 | $3,820 | $3,825 | $1,446 | $40,910 | $1,573.44 |
| $60,000 | $5,020 | $4,590 | $1,741 | $48,650 | $1,871.13 |
| $75,000 | $7,670 | $5,738 | $2,183 | $59,410 | $2,284.98 |
| $100,000 | $13,170 | $7,650 | $2,921 | $76,260 | $2,933.06 |
| $150,000 | $24,734 | $11,475 | $4,396 | $109,396 | $4,207.52 |
Hourly wages after taxes in Indiana
Full-time (40 hours a week, 2,080 hours a year), no overtime, single filer:
| Hourly wage | Annual pay | Weekly take-home | Bi-weekly take-home | Take-home per year | Take-home per hour |
|---|---|---|---|---|---|
| $15.00 | $31,200 | $506.89 | $1,013.78 | $26,358 | $12.67 |
| $20.00 | $41,600 | $661.69 | $1,323.38 | $34,408 | $16.54 |
| $25.00 | $52,000 | $816.49 | $1,632.98 | $42,458 | $20.41 |
| $30.00 | $62,400 | $971.29 | $1,942.58 | $50,507 | $24.28 |
Indiana vs. neighboring states
Take-home pay on a $75,000 salary (single, bi-weekly), with the difference from Indiana. Federal taxes are identical in every state, so the gaps come from state income tax. On a $75,000 salary, Indiana ranks #14 of 51 (50 states and DC) for take-home pay. Nationally, take-home pay on $75,000 ranges from $56,538 in Oregon to $61,593 in states without a wage tax; the median is $59,005.
| State | State income tax | Take-home per year | Per bi-weekly paycheck | vs. Indiana |
|---|---|---|---|---|
| Indiana | $2,183 | $59,410 | $2,284.98 | — |
| Ohio | $1,619 | $59,974 | $2,306.67 | +$564 |
| Kentucky | $2,507 | $59,085 | $2,272.50 | −$324 |
| Michigan | $2,937 | $58,656 | $2,255.99 | −$754 |
| Illinois | $3,568 | $58,025 | $2,231.72 | −$1,385 |
Neighboring state calculators: Ohio, Kentucky, Michigan, Illinois. See all 50 states and DC on the national paycheck calculator.
How your Indiana paycheck is calculated
- Gross pay for the year is your salary, or your hourly wage × hours × 52 plus overtime at 1.5×.
- Pre-tax deductions such as a traditional 401(k), health premiums and HSA contributions are subtracted before federal income tax.
- Federal income tax uses the 2026 brackets, your filing status’s standard deduction ($16,100 single) and credits for children and other dependents.
- Social Security and Medicare take 6.2% (up to $184,500 of wages) and 1.45%.
- Indiana income tax is figured on the annual amount using the rules above, then divided across your paychecks.
We divide the annual totals by your number of paychecks, which is how a correctly completed 2026 Form W-4 is designed to withhold. Your employer’s withholding tables may differ by a few dollars per check. For your full-year tax bill, use the income tax calculator.
Frequently asked questions
How much is $75,000 a year after taxes in Indiana?
A single filer earning $75,000 in Indiana takes home about $59,410 a year in 2026, or $2,284.98 per bi-weekly paycheck. That is after $7,670 of federal income tax, $5,738 of Social Security and Medicare and $2,183 of Indiana income tax. Pre-tax 401(k) or health deductions would lower your taxes but also your take-home pay.
Does Indiana have a state income tax?
Yes. Indiana has a flat 2.95% income tax in 2026. On a $75,000 salary, that works out to about $2,183 a year, or $83.96 per bi-weekly paycheck, an effective state rate of 2.91% of gross pay. Employers withhold it from each paycheck along with federal taxes.
How much is $20 an hour after taxes in Indiana?
Full time (40 hours a week), $20 an hour is $41,600 a year. After 2026 federal income tax, Social Security and Medicare and Indiana income tax, a single filer in Indiana takes home about $34,408 a year, or $1,323.38 per bi-weekly paycheck, about $16.54 per hour worked.
Are there local income taxes in Indiana?
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 doesn’t include local taxes, so subtract them from the estimate if they apply where you live or work.
How does take-home pay in Indiana compare with nearby states?
On a $75,000 salary (single, bi-weekly), take-home pay is $59,410 a year in Indiana. In neighboring states it ranges from $58,025 to $59,974; Ohio (the highest nearby) is $564 higher. Federal taxes are the same everywhere, so the gap comes entirely from state income tax.
How much federal tax comes out of each paycheck on a $75,000 salary?
Federal taxes don’t depend on the state. For a single filer paid every two weeks on $75,000, about $295.00 of federal income tax, $178.85 of Social Security (6.2%) and $41.83 of Medicare (1.45%) come out of each 2026 paycheck, based on the $16,100 standard deduction. Children, pre-tax deductions and W-4 choices change the federal amount.