Indiana Paycheck Calculator
Detailed paycheck estimator for workers in Indiana (IN). Uses updated 2026 federal withholdings, FICA tax limits, and state-specific tax brackets.
Estimate Take-Home Income in IN
2.95% Flat TaxCalculator Inputs
Calculation Result
How much tax comes out of a paycheck in Indiana?
Indiana's flat tax rate dropped to 2.95% on January 1, 2026, so a W-2 single filer earning $75,000 takes home about $59,409.50 a year before county taxes.
W-2 tax structure in Indiana
Indiana imposes a flat state income tax rate of 2.95% for the 2026 tax year, after a $1,000 personal exemption. Indiana counties also levy county-level income taxes on top of this rate.
Worked payroll example (gross $75,000 salary)
| Withholding Category | Annual Deduction |
|---|---|
| Gross Pay | $75,000.00 |
| Federal Income Tax | -$7,670.00 |
| FICA Tax (Social Security & Medicare) | -$5,737.50 |
| State Income Tax | -$2,183.00 |
| Net Take-Home Pay | $59,409.50 |
What makes Indiana W-2 taxation different?
Indiana's flat rate is on a legislated schedule to drop to 2.90% in 2027. The median household income in Indiana is $71,959 according to the U.S. Census Bureau ACS 2024 estimates.
Relocating from or to Indiana?
Comparing Indiana to Illinois, Indiana's flat rate of 2.95% is significantly lower than Illinois's flat rate of 4.95%, helping attract commuters in the border regions.
Frequently Asked Questions
Will Indiana's tax rate keep falling?
Yes. It is scheduled to fall to 2.90% in 2027, with potential further cuts to as low as 2.55% by 2030 depending on revenue targets.
Do all Indiana counties charge income tax?
Nearly all Indiana counties charge a local income tax (averaging about 0.35%) in addition to the state flat tax rate.
What is the median household income in Indiana?
The median household income in Indiana is $71,959 according to the 2024 U.S. Census Bureau ACS estimates.
Is Indiana one of the more affordable states?
Yes. Indiana sits at 90.7 on the MERIC index, running roughly 9% cheaper than the national average.
- Federal baseline calculations: IRS Revenue Procedure 2025-32.
- FICA caps and limits: Social Security Administration (2026).
- State tax rates: Tax Foundation Individual Income Tax Rates (2026).
- Median household income: U.S. Census Bureau ACS (2024).
- Cost of Living Index: MERIC Cost of Living Data Series (2025).
Indiana is 2.95% plus a county tax nobody shows you
Indiana dropped its flat state rate to 2.95% on January 1, 2026, after a $1,000 personal exemption. That is one of the lowest state rates in the country, and it is the number every national calculator shows you.
It is also only part of your bill. All 92 Indiana counties levy their own income tax on top, and the rates are not close to uniform. Depending on your county, the local rate can add anything from a fraction of a percent to well over two percent of your income. On a $75,000 salary, the difference between a low-rate county and a high-rate one runs to well over a thousand dollars a year.
The rule that surprises people: your county rate is set by where you lived on January 1, not where you work and not where you live now. Move in February and you are on your old county's rate for the entire year. Take a job across the county line and nothing changes at all.
This is the single most common reason an Indiana paycheck does not match a national calculator. If a tool asks you for your state and not your county, it cannot be right for Indiana.
Before county tax, a $75,000 single filer takes home about $59,409.50. Check your current county rate against the Indiana Department of Revenue's published county rate table, which is updated annually.
Indiana ranks 14th of 50 for take-home pay
On a $80,000 salary, a single filer keeps $62,780 in Indianaafter federal tax, Social Security, Medicare and state tax — $2,330 less than Alaska, the highest.
Plan your Indiana Budget: The Paycheck Split™
The Paycheck Split™
Divide your take-home pay to plan your budget (Essentials, Lifestyle, Financial Goals).