How Indiana Paychecks Are Taxed in 2026
Indiana's state rate is a flat 2.95%, with a $1,000 personal exemption. Every Indiana county adds its own income tax on top, so your total state and local rate depends on the county where you live or work.
For 2026, Indiana has a flat 2.95% state income tax. Before the rates apply, Indiana allows a personal exemption of $1,000 per filer.
All 92 Indiana counties levy a county income tax, typically between about 1% and 3%. Enter your county's rate in the local tax box.
As a reference point, a single filer in Indiana earning $60,000 with no pre-tax deductions keeps about $48,649 a year, or roughly $1,871.13 per bi-weekly paycheck. Enter your own pay above to see your numbers.
Indiana Paycheck Taxes at a Glance
Indiana's state rate is a flat 2.95%, with a $1,000 personal exemption. Every Indiana county adds its own income tax on top, so your total state and local rate depends on the county where you live or work.
How Indiana's Flat Tax Works
Every Indiana taxpayer pays the same 2.95% rate on taxable income, so the math is short:
On a $60,000 salary that comes to about $1,740 a year ($66.94 per bi-weekly paycheck), an effective state rate of 2.9%, lower than the headline rate because of the deductions taken first.
Local Income Taxes in Indiana
All 92 Indiana counties levy a county income tax, typically between about 1% and 3%. Enter your county's rate in the local tax box.
Federal and Indiana Payroll Taxes
Payroll taxes are separate from income tax and work the same in every state: Social Security is 6.2% of wages up to $184,500 in 2026, and Medicare is 1.45% of all wages, with an extra 0.9% withheld on wages over $200,000.
Indiana does not withhold a statewide employee payroll tax such as disability or paid family leave insurance.
Take-Home Pay by Salary in Indiana
Yearly estimates with the standard deduction, no pre-tax deductions and no local tax. Married figures assume one earner filing jointly.
| Salary | Federal tax | FICA | Indiana tax | Take-home, single | Take-home, married |
|---|---|---|---|---|---|
| $30,000 | $1,420 | $2,295 | $856 | $25,430 | $26,879 |
| $45,000 | $3,220 | $3,443 | $1,298 | $37,040 | $39,009 |
| $60,000 | $5,020 | $4,590 | $1,741 | $48,650 | $50,859 |
| $75,000 | $7,670 | $5,738 | $2,183 | $59,410 | $62,469 |
| $100,000 | $13,170 | $7,650 | $2,921 | $76,260 | $81,819 |
| $150,000 | $24,734 | $11,475 | $4,396 | $109,396 | $118,819 |
| $200,000 | $36,734 | $14,339 | $5,871 | $143,057 | $153,480 |
A $60,000 Paycheck in Indiana, Line by Line
Single filer, paid bi-weekly (26 paychecks), standard withholding, no pre-tax deductions.
Over a year that's $48,649 take-home, with a total tax rate of 18.9%. Indiana income tax is 2.9% of gross pay.
Indiana vs. Nearby States
Yearly take-home on a $60,000 salary, single filer, no pre-tax deductions or local tax.
Indiana Paycheck FAQs
What is the Indiana state income tax rate in 2026?
Indiana uses a flat 2.95% rate for 2026, applied to taxable income after the state's deductions and exemptions.
How much is $60,000 a year after taxes in Indiana?
A single filer earning $60,000 in Indiana takes home about $48,649 a year, or $1,871.13 per bi-weekly paycheck, with standard withholding and no pre-tax deductions.
Do I pay local income tax in Indiana?
All 92 Indiana counties levy a county income tax, typically between about 1% and 3%. Enter your county's rate in the local tax box.
Does Indiana withhold any state payroll taxes?
No. Indiana has no statewide employee payroll tax for disability or paid leave, so only federal Social Security and Medicare apply.
Does filing status change my Indiana tax?
Yes. Indiana gives married couples filing jointly different brackets, deductions or exemptions than single filers, and filing status also changes your federal withholding.
Will my paycheck match this calculator exactly?
It should be close. The calculator estimates your yearly taxes and spreads them across your paychecks. Your employer uses your W-4, any state withholding form, your benefit elections and its payroll system, so your stub can differ by a few dollars.