Indiana Paycheck Calculator
Indiana taxes wages at a flat 2.95% state rate for 2026 — but every county adds its own tax on top, which this estimate leaves out (see below).
Worked example
Single filer earning $60,000 in Indiana, paid biweekly: federal tax is $5,020.00/yr (after the $16,100 standard deduction). Indiana taxable income is $60,000 − the $1,000 personal exemption = $59,000.00, so state tax is $1,740.50/yr. Social Security is $3,720 and Medicare is $870. Take-home: $48,649.50/yr — $1,871.13 per biweekly paycheck. Change the salary above and try your own.
How Indiana paycheck tax works
Federal first: your employer annualizes each paycheck. Federal taxable income is your gross minus the IRS standard deduction for 2026 — $16,100 if you file single, $32,200 married filing jointly (IRS Rev. Proc. 2025-32) — then taxed through the 2026 federal brackets (10% up to 22% across most middle incomes). Social Security takes 6.2% of wages up to the 2026 wage base of $184,500, and Medicare takes 1.45% of all wages (plus 0.9% over $200,000 single / $250,000 joint).
Indiana tax uses its 2026 tables: a flat 2.95% state rate for 2026 (down from 3.0% in 2025, on a legislated glide path to 2.9%). Indiana has no standard deduction; it gives a $1,000 personal exemption per person ($1,000 single / $2,000 joint). This calculator annualizes your salary; your employer's per-paycheck withholding may differ slightly.
Local taxes not included: Every Indiana county adds its own income tax (roughly 0.5%–3% depending on the county — Marion County/Indianapolis is about 2%). County tax is not included in this estimate, so a real Indiana paycheck is usually a little smaller.
Indiana paycheck FAQ
What is the Indiana income tax rate in 2026?
For 2026, Indiana taxes wages at a flat 2.95% state rate for 2026 (down from 3.0% in 2025, on a legislated glide path to 2.9%), after the $1,000 personal exemption. Enter your salary above to see the dollar amount on your income.
What about local taxes in Indiana?
Every Indiana county adds its own income tax (roughly 0.5%–3% depending on the county — Marion County/Indianapolis is about 2%). County tax is not included in this estimate, so a real Indiana paycheck is usually a little smaller.
My real Indiana paycheck is different. Why?
Pre-tax 401(k) or HSA contributions, health premiums, garnishments, bonuses (often withheld at a flat 22% federal), and your W-4 elections all move the real number. Many states also withhold a little differently per paycheck than this annualized estimate. Treat this as a close, honest estimate — not payroll software.
What about overtime or a bonus?
Overtime hours are taxed at the same rates — a higher paycheck just annualizes higher. Try our time and a half calculator and bonus tax calculator for those.