How Indiana taxes your paycheck
Indiana has a flat 2.95% income tax for tax year 2026. Before the rate applies, the calculator subtracts a personal exemption of $1,000 per filer ($2,000 for a married couple).
Traditional 401(k) contributions are excluded from Indiana taxable wages, and Section 125 health premiums are excluded.
Figures are from Indiana DOR: 2026 income tax rates (tax year 2026).
Take-home pay examples in Indiana
A single filer earning $60,000 in Indiana, paid every two weeks, takes home about $1,871.13 per paycheck, or $48,650 a year. Of the $60,000, $5,020 goes to federal income tax, $4,590 to Social Security and Medicare, and $1,741 to Indiana income tax.
At $100,000, take-home pay is about $76,260 a year ($2,933.06 per paycheck), with $2,921 of Indiana income tax. A married couple filing jointly on one $100,000 salary keeps about $81,819, because of the larger standard deduction. The table below shows more salaries.
Other Indiana payroll deductions
Indiana has no state-mandated employee payroll contribution, such as disability or paid family leave insurance, included in this calculator. Your paycheck may still show voluntary or employer-specific deductions.
Local income taxes in Indiana
County income taxes apply; county withholding rates may change in January and October. Local taxes are not included in the calculator, so subtract them separately if they apply to you.
Hourly pay in Indiana
A full-time worker earning $20 an hour (40 hours a week, $41,600 a year) in Indiana takes home about $1,323.38 every two weeks, or $661.69 a week on average, as a single filer. Indiana income tax takes $1,198 of that pay a year, an effective state rate of 2.879%. Choose Hourly wage in the calculator to enter your own rate and hours.
Indiana compared with neighboring states
On a $75,000 salary (single, no pre-tax deductions), take-home pay in Indiana is about $59,410 a year. It is higher in Ohio, and lower in Kentucky, Michigan and Illinois. The comparison table below shows the difference in dollars. Where you live usually decides which state taxes your wages, but people who live in one state and work in another should check both states' rules on residency and credits.
What else to know about Indiana taxes
The state rate is 2.95% in 2026 and is scheduled to drop to 2.9% in 2027.
Every Indiana county charges its own income tax, which is not included here. County rates can change in January and October.
What this estimate does not include
Tax credits, itemized deductions, other income, overtime, bonuses, local income taxes and post-tax deductions are not included, and actual withholding follows your Form W-4 and Indiana's own withholding rules. Use it as a planning estimate. For the method and the federal rules, see the main paycheck calculator.