How Indiana taxes your paycheck in 2026
Indiana taxes wages at a flat 2.95%, after a $1,000 single-filer deduction/exemption.
Federal deductions are the same everywhere: income tax on your wages after the $16,100 standard deduction (single filers), 6.2% Social Security on the first $184,500 of wages, and 1.45% Medicare on everything. Every Indiana county levies its own income tax, typically 0.5%–3%, on top of the state rate.
Indiana's income tax, in context
Indiana pairs one of the lowest flat state rates (2.95% for 2026, on a scheduled path down to 2.9%) with mandatory county income taxes in all 92 counties, ranging from about 0.5% to over 3%. For most Hoosiers the county tax is a bigger line than the state tax, so the headline rate understates the real deduction.
Indiana 2026 income tax brackets (single filer)
One rate applies to all taxable income, after the $1,000 single-filer deduction/exemption.
| Taxable income | Rate |
|---|---|
| Over $0 | 2.95% |
How Indiana compares
On a $75,000 single-filer salary, Indiana ranks 14th of 51 for take-home pay, at $59,410 after $2,183 of state tax. Moving that salary to a no-income-tax state like Texas or Florida would keep an extra $2,183 a year; the same salary in the highest-tax state (Oregon) would net $55,604. At the register, Indiana's average combined sales tax is 7% — see the Indiana sales tax calculator.
Neighboring states on the same $75,000 salary:
| State | State income tax | Take-home / yr | vs. IN |
|---|---|---|---|
| Indiana | $2,183 | $59,410 | — |
| Ohio | $1,280 | $60,312 | +$903 |
| Kentucky | $2,507 | $59,085 | −$324 |
| Michigan | $2,937 | $58,656 | −$754 |
| Illinois | $3,568 | $58,025 | −$1,385 |
Example take-home pay in Indiana
Single filer, 2026 rates, standard deduction, no pre-tax benefits or local taxes:
| Salary | Federal tax | IN state tax | Take-home / yr | Per biweekly check |
|---|---|---|---|---|
| $40,000 | $2,620 | $1,151 | $33,170 | $1,276 |
| $50,000 | $3,820 | $1,446 | $40,910 | $1,573 |
| $60,000 | $5,020 | $1,741 | $48,650 | $1,871 |
| $75,000 | $7,670 | $2,183 | $59,410 | $2,285 |
| $100,000 | $13,170 | $2,921 | $76,260 | $2,933 |
| $150,000 | $24,734 | $4,396 | $109,396 | $4,208 |
Frequently asked questions
+How much is taken out of a $75,000 paycheck in Indiana?
For a single filer with no pre-tax deductions in 2026: about $7,670 federal income tax, $5,738 in Social Security and Medicare, and roughly $2,183 in Indiana state income tax — leaving take-home pay of about $59,410 a year, or $2,285 every two weeks.
+What is the Indiana state income tax rate for 2026?
Indiana taxes wages at a flat 2.95%, after a $1,000 single-filer deduction/exemption.
+How much is $100,000 after taxes in Indiana?
About $76,260 a year for a single filer in 2026 — $13,170 federal income tax, $7,650 Social Security and Medicare, and about $2,921 Indiana state tax. That's roughly $6,355 a month.
+How much is $50,000 after taxes in Indiana?
About $40,910 a year, or $1,573 per biweekly check, for a single filer with the standard deduction after roughly $1,446 of Indiana state tax.
+What is the marginal state tax rate on a $75,000 salary in Indiana?
2.95%. That's the Indiana tax on your next dollar of income at $75,000, on top of the 22% federal bracket and 7.65% FICA — about 32.6% all-in on a raise before local taxes.
+Why is my actual paycheck different from this estimate?
This calculator assumes the standard deduction, single-filer state parameters, and no dependents, credits or local taxes. Every Indiana county levies its own income tax, typically 0.5%–3%, on top of the state rate. Employer withholding also follows your W-4, which may over- or under-withhold relative to your final tax bill.
+Do 401(k) contributions reduce state tax too?
In Indiana, traditional 401(k) and most pre-tax benefit contributions reduce your state taxable income as well as federal. They do not reduce Social Security or Medicare tax.
Sources: IRS 2026 federal parameters; state rates and brackets as of January 1, 2026 compiled from state statutes and the Tax Foundation. Estimates only — see our terms.