INDIANA PAYCHECK CALCULATOR 2026
Indiana uses a flat 2.95% state income tax rate in 2026 — down from 3.0% in 2025 — applied to adjusted gross income after personal exemptions. All 92 Indiana counties also levy a mandatory county income tax on top of the state rate, ranging from 0.50% to 2.95%. Select your county below to get an accurate total. Social Security and military retirement income are fully exempt. Use the calculator to estimate your exact Indiana take-home pay.
CALCULATE YOUR INDIANA NET PAY
State 2.95% + your county rate · All exemptions applied · 2026 verified data
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EVERY DEDUCTION ON AN INDIANA PAYCHECK IN 2026
Indiana paychecks have five deduction lines — four universal ones plus a county income tax that every Indiana worker pays. There is no state disability insurance and no paid family leave withholding anywhere in Indiana:
- Federal Income Tax — Progressive 10%–37% applied after the 2026 federal standard deduction ($16,100 Single / $32,200 MFJ / $24,150 HOH).
- Social Security — 6.2% of gross wages up to the $176,100 annual wage base.
- Medicare — 1.45% on all wages with no cap. An additional 0.9% surtax applies to wages above $200,000.
- Indiana State Income Tax — Flat 2.95% on Indiana taxable income (gross wages minus personal exemptions of $1,000 each). No standard deduction.
- Indiana County Income Tax — A mandatory additional flat rate specific to your Indiana county of residence as of January 1. Rates range from 0.50% to 2.95%; all 92 counties levy this tax with no exceptions.
Example — Single, $70,000 gross, Marion County (2.02%):
IN Taxable = $70,000 − $1,000 (1 exemption) = $69,000
State Tax: $69,000 × 2.95% = $2,035.50
County Tax (Marion 2.02%): $69,000 × 2.02% = $1,393.80
Combined IN Tax = $3,429.30
INDIANA PERSONAL EXEMPTIONS — NO STANDARD DEDUCTION
Indiana does not use a standard deduction. Instead, Indiana adjusted gross income is reduced by personal exemptions before the 2.95% rate is applied. The exemption amounts are confirmed by Indiana DOR Departmental Notice #1, effective January 1, 2026:
| Exemption Type | Annual Amount | Who Qualifies |
|---|---|---|
| Personal exemption (each) | $1,000 | Self; spouse (if filing jointly) |
| Dependent exemption (each) | $1,500 | Each qualifying dependent claimed on WH-4 |
| First-time dependent exemption | $1,500 | First year claiming a new dependent |
| Adopted child exemption (each) | $3,000 | Each qualifying adopted child |
| Age 65+ exemption (each) | $1,000 | Taxpayer and/or spouse age 65 or older |
| Blind exemption (each) | $1,000 | Taxpayer and/or spouse legally blind |
For withholding purposes, most employees claim 1 personal exemption (Single) or 2 (Married), plus 1 per dependent. An employee who is Single with two dependents would have $1,000 + $1,500 + $1,500 = $4,000 in total exemptions, leaving $66,000 of a $70,000 salary subject to Indiana's 2.95% state rate and county rate.
INDIANA COUNTY INCOME TAX RATES 2026 — SELECTED COUNTIES
All 92 Indiana counties levy county income tax. The rates below are confirmed by Indiana DOR Departmental Notice #1 effective January 1, 2026. Six counties marked with an asterisk (*) changed their rates on January 1, 2026:
| County | Major City | 2026 County Rate | Combined Rate (State + County) |
|---|---|---|---|
| Marion | Indianapolis | 2.02% | 4.97% |
| Monroe | Bloomington | 2.35% | 5.30% |
| Floyd | New Albany | 2.50% | 5.45% |
| Delaware | Muncie | 2.25% | 5.20% |
| Elkhart | Elkhart/Goshen | 2.00% | 4.95% |
| Vigo | Terre Haute | 2.00% | 4.95% |
| Wayne | Richmond | 2.00% | 4.95% |
| St. Joseph | South Bend | 1.75% | 4.70% |
| Bartholomew | Columbus | 1.75% | 4.70% |
| Allen | Fort Wayne | 1.59% | 4.54% |
| Tippecanoe | Lafayette | 1.43% | 4.38% |
| Vanderburgh | Evansville | 1.20% | 4.15% |
| Lake * | Gary/Hammond | 1.50% | 4.45% |
| Johnson | Franklin/Greenwood | 1.12% | 4.07% |
| Hamilton | Carmel/Fishers/Noblesville | 1.10% | 4.05% |
| Hendricks | Danville/Plainfield | 1.00% | 3.95% |
Hamilton County at 1.10% and Hendricks County at 1.00% are among the lowest county rates in the state — both are suburban Indianapolis counties — making them attractive for commuters who can choose where to live while working in Marion County. Monroe County (Bloomington, home of Indiana University) has one of the highest rates at 2.35%.
INDIANA'S RATE REDUCTION PATH — HB 1001 AND SB 451
| Tax Year | IN State Rate | Change | Authority |
|---|---|---|---|
| 2024 | 3.05% | — | HB 1001 (2023) |
| 2025 | 3.00% | −0.05 pp | HB 1001 (2023) |
| 2026 | 2.95% | −0.05 pp | HB 1001 (2023) — current |
| 2027 | 2.90% | −0.05 pp | HB 1001 (2023) |
| 2030+ | 2.85% → 2.55% | −0.05 pp/even year | SB 451 (2025) — revenue conditional |
INDIANA VS MIDWEST NEIGHBORS — $70,000 TAKE-HOME
| State | Tax Structure (2026) | State + Local Tax on $70k | Est. Annual Net |
|---|---|---|---|
| Indiana (Hamilton Co.) | 2.95% + 1.10% county | ~$2,802 | ~$55,071 |
| Indiana (Marion Co.) | 2.95% + 2.02% county | ~$3,429 | ~$54,444 |
| Ohio | Progressive up to 3.5% + local | ~$2,100 | ~$55,773 |
| Michigan | Flat 4.25% + city tax in some cities | ~$2,724 | ~$55,149 |
| Illinois | Flat 4.95% | ~$3,195 | ~$54,678 |
| Kentucky | Flat 4.0% | ~$2,576 | ~$55,297 |
| Tennessee | No state income tax | $0 | ~$57,873 |
| Iowa | Flat 3.8% | ~$2,320 | ~$55,553 |
| Missouri | Progressive 0%–4.7% | ~$2,353 | ~$55,478 |
2026 FEDERAL TAX BRACKETS — SINGLE FILERS
| Federal Taxable Income (Single) | Federal Rate |
|---|---|
| $0 – $11,925 | 10% |
| $11,926 – $48,475 | 12% |
| $48,476 – $103,350 | 22% |
| $103,351 – $197,300 | 24% |
| $197,301 – $250,525 | 32% |
| $250,526 – $626,350 | 35% |
| Above $626,350 | 37% |
INDIANA PAYCHECK CALCULATOR — FAQs
What is Indiana's income tax rate in 2026?
Indiana's flat state income tax rate is 2.95% for 2026, down from 3.0% in 2025. This rate applies uniformly to all Indiana adjusted gross income regardless of income level or filing status. It is confirmed by the Indiana DOR Departmental Notice #1, effective January 1, 2026. The rate will fall to 2.9% in 2027 per HB 1001, and may continue decreasing under SB 451 (signed April 2025).
Do all Indiana residents pay county income tax?
Yes — all 92 Indiana counties levy county income tax with no exceptions. There is no Indiana county without a county income tax. The rate is determined by your Indiana county of residence as of January 1 of the tax year, not your work county. Rates range from approximately 0.50% to 2.95% and are set by county governments. Six counties changed their rates effective January 1, 2026.
Does Indiana have a standard deduction?
No. Indiana does not have a standard deduction. Instead, Indiana taxable income is reduced by personal exemptions — $1,000 per exemption (self and spouse), $1,500 per dependent, $3,000 per adopted child, plus $1,000 each for age 65+ and blind. These are claimed on Form WH-4 for withholding purposes.
Is Social Security taxable in Indiana?
No. Social Security benefits are fully deductible on the Indiana return. Military retirement pay is also 100% exempt. Indiana taxes most wages, salaries, and self-employment income at the 2.95% flat rate, but retirement income from Social Security and military pensions escapes state tax entirely.
How much will I take home on a $70,000 salary in Indiana?
Filing Single in Marion County: IN taxable income = $69,000 ($70k − $1,000 exemption). State tax = $2,035.50 (2.95%). County tax (Marion 2.02%) = $1,393.80. Federal tax ~$6,772. FICA ~$5,355. Estimated annual take-home: ~$54,444 (~$4,537/month). In Hamilton County (1.10%), the same worker takes home ~$55,071/year — a difference of $627 annually from the county rate alone.
Run your Indiana estimate again anytime: Indiana Paycheck Calculator 2026