Indiana income tax in 2026
Indiana charges a flat 2.95% on taxable income. Single filers subtract $1,000 in deductions and exemptions first ($2,000 for married couples filing jointly).
What to know about taxes in Indiana
Indiana has a low flat state income tax, but every one of its 92 counties adds its own local income tax, usually between about 1% and 3%. Your county of residence on January 1 determines the local rate.
- Our calculator shows state tax only: add your county rate for a complete picture.
- The state rate is being lowered gradually.
Largest cities: Indianapolis, Fort Wayne, Evansville, South Bend.
Take-home pay in Indiana by salary
What common salaries look like after taxes in Indiana for a single filer.
| Salary | Take-home / year | Per month | Bi-weekly | Tax rate |
|---|---|---|---|---|
| $30,000 | $24,937 | $2,078 | $959 | 16.9% |
| $40,000 | $32,507 | $2,709 | $1,250 | 18.7% |
| $50,000 | $40,077 | $3,340 | $1,541 | 19.9% |
| $60,000 | $47,647 | $3,971 | $1,833 | 20.6% |
| $70,000 | $54,867 | $4,572 | $2,110 | 21.6% |
| $80,000 | $61,437 | $5,120 | $2,363 | 23.2% |
| $90,000 | $68,007 | $5,667 | $2,616 | 24.4% |
| $100,000 | $74,577 | $6,215 | $2,868 | 25.4% |
| $120,000 | $87,717 | $7,310 | $3,374 | 26.9% |
| $150,000 | $106,863 | $8,905 | $4,110 | 28.8% |
| $200,000 | $139,674 | $11,639 | $5,372 | 30.2% |
Where your taxes go
- Take-home pay$47,64779.4%
- Federal income tax$5,0208.4%
- Social Security$3,7206.2%
- Medicare$8701.5%
- Indiana income tax$1,7412.9%
- Local income tax$1,0031.7%
- Federal income tax ($5,020). Charged on $43,900 of taxable income after the standard deduction, with a top rate of 12% on your last dollar.
- Social Security ($3,720). 6.2% of wages up to $184,500. It funds retirement and disability benefits.
- Medicare ($870). It funds hospital insurance for people aged 65 and over, at 1.45% of your pay.
- Indiana income tax ($1,741). Charged on $59,000 after state deductions, marginal rate 2.95%.
- Local income tax ($1,003). County tax, estimated with the statewide average.
How Indiana compares with other states
Indiana ranks #42 of 51 for take-home pay on $60,000. The gap between the best state (Florida) and the worst (Oregon) is $4,401 a year.
Top 5, your state and bottom 5. Single filer, no pre-tax contributions.
How a 401(k) changes your paycheck
Because traditional 401(k) money is taken before income tax, part of every dollar you save is effectively paid by the tax you no longer owe.
| Contribution | Saved per year | Take-home pay | Per month | Income tax saved |
|---|---|---|---|---|
| None | $0 | $47,647 | $3,971 | — |
| 3% | $1,800 | $46,146 | $3,846 | $300 |
| 6% | $3,600 | $44,646 | $3,720 | $599 |
| 10% | $6,000 | $42,646 | $3,554 | $999 |
| 15% | $9,000 | $40,145 | $3,345 | $1,499 |
Single vs married filing jointly
Marriage changes the math: a couple filing jointly gets twice the standard deduction and brackets twice as wide as a single filer.
| Single | Married, one income | |
|---|---|---|
| Federal income tax | $5,020 | $2,840 |
| State income tax | $1,741 | $1,711 |
| Social Security + Medicare | $4,590 | $4,590 |
| Take-home pay | $47,647 | $49,873 |
Filing jointly would add $2,227 a year ($186 a month) to this household's take-home pay.
What this salary buys you
The 50/30/20 rule splits your monthly take-home pay of $3,971 into three buckets.
- $60,000 is 86% of the median household income in Indiana ($70,051).
- With the 30% rule, a comfortable rent is up to $1,500 per month.
- That is 4.0 times the Indiana minimum wage of $7.25/hour.
Frequently asked questions
Does Indiana have a state income tax?
Yes. Indiana uses a flat rate of 2.95% in 2026.
What is the income tax rate in Indiana?
Indiana uses a flat rate of 2.95% in 2026.
How much is $60,000 after tax in Indiana?
A single filer earning $60,000 takes home about $47,647 a year, or $3,971 per month.
What is the minimum wage in Indiana?
The minimum wage in Indiana is about $7.25 per hour.
How is my Indiana paycheck calculated?
We subtract federal income tax, Social Security (6.2%), Medicare (1.45%) and Indiana income tax from your gross pay.
Figures use 2026 IRS federal brackets, the standard deduction, Social Security and Medicare rates, and each state's income tax rules for a W-2 employee. Read our methodology. Last updated September 25, 2026. Estimates for information only, not tax advice.