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PAYCHECK / 2026 / INDIANA

Indiana paycheck calculator

Indiana has a flat state income tax of 2.95% for 2026, and on top of it every one of the state's 92 counties charges its own local income tax. Your county rate depends on where you lived on January 1, so two coworkers at the same desk can have different paycheck deductions.

Last verified: Methodology

Your details

  • StateIndiana

01Pay

Pay type
Pay frequency

02Where you live and work

City, county or school district income tax, where one applies.

03Form W-4

Filing status (W-4 Step 1c)

Used for W-4 Step 3.

04Pre-tax deductions

05Post-tax deductions

Roth 401(k), union dues, garnishments.

Take-home per paycheck

$2,285

every 2 weeks

Take-home per year
$59,410
Total taxes per year
$15,590
Effective tax rate
20.8%
Marginal tax rate
32.6%
  • Assumes 1 exemption on WH-4 line 5.
  • Every Indiana county levies a local income tax; choose your county of residence to include it.

Take-home per paycheck: $2,285 every 2 weeks

Paycheck breakdown
LineEvery 2 weeksPer year
Gross pay$2,885$75,000
Federal income tax−$295−$7,670
Social Security−$179−$4,650
Medicare−$42−$1,088
State income tax−$84−$2,183
Take-home pay$2,285$59,410
Where your pay goes
79%TAKE-HOME
  • Take-home pay$59,41079%
  • Federal income tax$7,67010%
  • Social Security & Medicare$5,7388%
  • State & local taxes$2,1833%

$2,285

every 2 weeks

IN / 2026

How Indiana taxes your paycheck

Income tax on wages
2.95% flat
One flat 2.95% state rate on Indiana taxable income, plus a county income tax that every county levies.
Employee payroll taxes
None
Indiana has no state payroll tax withheld from employees.
Local income taxes
92 included
All 92 Indiana counties levy a local income tax, withheld at the rate of the county where you lived on January 1, on the same taxable pay as the state tax.
Bonus withholding
2.95%
A separate bonus check is withheld at the flat 2.95% state rate with no exemptions, plus your county's rate.
Rates

Indiana income tax rates for 2026

These are the return rates. Your employer withholds using Indiana's withholding method (Deduction-constant percentage method (Departmental Notice #1, 2026)), which the calculator above follows.

Indiana 2026 tax rates — All filing statuses
Taxable incomeRate
Over $02.95%
Standard deduction and exemptions
ItemAmount
Personal exemption (each for you, your spouse and each dependent)$1,000
Additional exemption for each qualifying dependent child$1,500
Additional exemption for each adopted qualifying dependent$3,000
Additional exemption, age 65 or older or blind (each)$1,000
Payroll & local

Other taxes on Indiana paychecks

LocalityTypeResident rate
Adams Countycounty1.6%
Allen Countycounty1.59%
Bartholomew Countycounty1.75%
Benton Countycounty1.79%
Blackford Countycounty2.5%
Boone Countycounty1.7%
Brown Countycounty2.523%
Carroll Countycounty2.473%
Cass Countycounty2.95%
Clark Countycounty2%
Clay Countycounty2.35%
Clinton Countycounty2.65%
Crawford Countycounty1.65%
Daviess Countycounty1.5%
Dearborn Countycounty1.4%
Decatur Countycounty2.45%
DeKalb Countycounty2.13%
Delaware Countycounty1.5%
Dubois Countycounty1.2%
Elkhart Countycounty2%
Fayette Countycounty2.82%
Floyd Countycounty1.89%
Fountain Countycounty2.1%
Franklin Countycounty1.7%
Fulton Countycounty2.88%
Gibson Countycounty1.3%
Grant Countycounty2.75%
Greene Countycounty2.35%
Hamilton Countycounty1.1%
Hancock Countycounty1.94%
Harrison Countycounty1%
Hendricks Countycounty1.7%
Henry Countycounty2.02%
Howard Countycounty2.35%
Huntington Countycounty1.95%
Jackson Countycounty2.1%
Jasper Countycounty2.864%
Jay Countycounty2.5%
Jefferson Countycounty1.03%
Jennings Countycounty2.5%
Johnson Countycounty1.4%
Knox Countycounty1.7%
Kosciusko Countycounty1%
LaGrange Countycounty1.65%
Lake Countycounty1.5%
LaPorte Countycounty1.45%
Lawrence Countycounty1.75%
Madison Countycounty2.25%
Marion Countycounty2.02%
Marshall Countycounty1.25%
Martin Countycounty2.5%
Miami Countycounty2.54%
Monroe Countycounty2.14%
Montgomery Countycounty2.65%
Morgan Countycounty2.72%
Newton Countycounty1%
Noble Countycounty1.75%
Ohio Countycounty2%
Orange Countycounty1.75%
Owen Countycounty2.5%
Parke Countycounty2.65%
Perry Countycounty1.4%
Pike Countycounty1.2%
Porter Countycounty0.5%
Posey Countycounty1.45%
Pulaski Countycounty2.85%
Putnam Countycounty2.3%
Randolph Countycounty3%
Ripley Countycounty2.38%
Rush Countycounty2.15%
St. Joseph Countycounty1.75%
Scott Countycounty2.16%
Shelby Countycounty1.7%
Spencer Countycounty0.8%
Starke Countycounty1.71%
Steuben Countycounty1.99%
Sullivan Countycounty1.7%
Switzerland Countycounty1.45%
Tippecanoe Countycounty1.28%
Tipton Countycounty2.6%
Union Countycounty2.75%
Vanderburgh Countycounty1.25%
Vermillion Countycounty1.5%
Vigo Countycounty2%
Wabash Countycounty2.9%
Warren Countycounty2.12%
Warrick Countycounty1%
Washington Countycounty2%
Wayne Countycounty1.25%
Wells Countycounty2.1%
White Countycounty2.32%
Whitley Countycounty1.683%
Worked example

$47,860 in Indiana

$47,860 is the median annual wage in Indiana (May 2025, BLS OEWS). A single filer paid every two weeks with no other income or deductions takes home $39,253 a year, or $1,510 per paycheck.

$47,860 IN INDIANAPAYCHECK / 2026 / INDIANA
LineEvery 2 weeksPer year
Gross pay$1,841$47,860
Federal income tax-$137-$3,563
Social Security-$114-$2,967
Medicare-$27-$694
State income tax-$53-$1,382
Take-home pay$1,510$39,253

How Indiana withholds state and county tax

Employers follow the Department of Revenue's Departmental Notice #1. Each pay period they subtract a fixed deduction constant for the exemptions on your Form WH-4, then multiply what is left by the state rate and, separately, by your county's rate. Both taxes come out of the same taxable amount.

The WH-4 gives a smaller exemption for you, your spouse and each dependent, and a larger additional exemption for each qualifying dependent child. Adopted children get a bigger exemption still. If you are 65 or older or blind, you can claim an extra exemption too.

Indiana starts from federal adjusted gross income, so traditional 401(k) contributions, cafeteria-plan HSA contributions and pre-tax health premiums lower both your state and county tax.

County income tax

County rates range widely, from well under 1% to 3%. Your employer withholds for the county you lived in on January 1 of the year. If you move during the year, your county does not change until the next January.

If you live outside Indiana but work here, the county where you principally worked on January 1 sets your county rate. Our calculator assumes you live and work in the county you choose.

Bonuses and other one-time pay

A bonus or other non-periodic payment is withheld without exemptions: your employer applies the state rate and your county rate to the whole amount.

Reciprocity with neighboring states

Indiana has reciprocal agreements with several neighbors, including Michigan and Ohio. Residents of those states working in Indiana pay income tax to their home state on their wages, and Indiana residents working there pay Indiana.

What changed recently

  • 2026: The state income tax rate for individuals fell from 3% in 2025 to 2.95% for 2026. Source
  • 2026: Carroll, Grant, Greene, Howard, Shelby and Union counties changed their local income tax rates after the October 2025 notice, effective January 1, 2026. Source
By salary

Indiana take-home by salary

FAQ

Questions people ask

What is Indiana's county tax rate?

It depends on your county. Every Indiana county sets its own local income tax rate, and the Department of Revenue publishes all 92 rates each year in Departmental Notice #1. Marion County (Indianapolis), for example, is 2.02% for 2026.

Which county tax do I pay if I moved during the year?

The county you lived in on January 1. Your county status is fixed for the whole calendar year and only changes the next January, so update your WH-4 for the following year after you move.

What is the Indiana state income tax rate for 2026?

A flat 2.95% of Indiana taxable income, after your exemptions. County income tax is added on top.

How many exemptions should I claim on my Indiana WH-4?

Claim one for yourself, one for your spouse if your spouse does not claim it, and one for each dependent on lines 1 to 3. Then claim the additional exemption on line 6 for each qualifying dependent child, and on line 8 for each adopted child.

Is a bonus taxed differently in Indiana?

A bonus paid separately is withheld at the state rate plus your county rate with no exemptions taken off, so a bigger share of the bonus is withheld than of a regular paycheck of the same size.

Does my 401(k) contribution reduce Indiana and county tax?

Yes. Indiana uses federal adjusted gross income, so traditional 401(k) and 403(b) contributions, cafeteria-plan HSA contributions and pre-tax health premiums reduce both state and county tax.

Sources

  1. Indiana Department of RevenueDepartmental Notice #1 (R46 / 01-26), How to Compute Withholding for State and County Income Tax (county rates effective Jan. 1, 2026) · retrieved 2026-10-16
  2. Indiana Department of RevenueForm WH-4 (State Form 48845, R10 / 8-23), Employee's Withholding Exemption and County Status Certificate · retrieved 2026-10-16
  3. Indiana Department of Revenue2025 IT-40 Full-Year Resident Individual Income Tax Booklet · retrieved 2026-10-16
  4. Indiana Department of RevenueIncome Tax Information Bulletin #52, Withholding Information for Part-Time Employees and Other Miscellaneous Withholding Requirements · retrieved 2026-10-16
  5. IRSPublication 15-T (2026), Federal Income Tax Withholding Methods · retrieved 2026-10-16
  6. IRSPublication 15 (2026), (Circular E), Employer's Tax Guide · retrieved 2026-10-16
  7. IRSRev. Proc. 2025-32: 2026 inflation-adjusted tax items · retrieved 2026-10-16
  8. IRSForm W-4 (2026), Employee's Withholding Certificate · retrieved 2026-10-16
  9. IRSPublication 505 (2026), Tax Withholding and Estimated Tax · retrieved 2026-10-16
  10. IRSForm 1040-ES (2026), Estimated Tax for Individuals · retrieved 2026-10-16
  11. IRSSchedule 1-A (Form 1040) 2026, Additional Deductions (early-release draft) · retrieved 2026-10-16
  12. IRSSchedule 8812 (Form 1040) 2026, Credits for Qualifying Children and Other Dependents (early-release draft) · retrieved 2026-10-16
  13. IRSWorking Families Tax Cuts: Individuals and workers (tips, overtime, seniors, car loan interest) · retrieved 2026-10-16
  14. IRSWorking Families Tax Cuts provisions (charitable deduction for non-itemizers, Section 70424) · retrieved 2026-10-16
  15. IRSChild Tax Credit · retrieved 2026-10-16
  16. IRSIR-2025-111: 401(k) limit increases to $24,500 for 2026 · retrieved 2026-10-16
  17. IRSRev. Proc. 2025-19: 2026 HSA limits · retrieved 2026-10-16
  18. BLSBLS Occupational Employment and Wage Statistics (OEWS), May 2025, median annual wage by state · retrieved 2026-10-16

Last verified: CalcBloc Editorial Team