IN Tax Update 2026

Indiana Paycheck Calculator

Free Indiana paycheck calculator. Estimate your take-home pay with current Indiana state tax rates and federal withholdings. Calculate federal income tax, Social Security, Medicare, and Indiana state withholdings instantly.

Indiana State Income Tax Included
Accurate Federal Tax Tables 2025/2026
Filing Status & Allowance Support
Bi-weekly, Weekly, & Monthly Estimates
Estimated Take-Home Pay
$3,245.80
Gross Pay$4,500.00
Federal Income Tax-$542.10
IN State Tax-$212.40
FICA (Social Security & Medicare)-$499.70
Net Pay$3,245.80

What you should know about Indiana taxes

Indiana has a low flat state rate of 3.05%, but county taxes add 0.5%–2.9% on top depending on where you live. Always include your county when estimating your Indiana paycheck.

Indiana Income Tax Brackets — 2026

Tax calculation results
Tax RateTaxable Income Range
3.05%All taxable income (flat rate)
Major city: Indianapolis
Minimum wage: $7.25/hr (federal)

Indiana's 3.05% Flat Rate + County Taxes

Indiana keeps state income tax low at a flat 3.05% — one of the lowest flat rates in the country. The catch is that every one of Indiana's 92 counties charges its own income tax on top of that. Rates range from 0.5% in a handful of rural counties up to 2.9% in select areas. Marion County (Indianapolis) charges 2.02%, so an Indianapolis worker's combined state-plus-local rate is about 5.07%. Hamilton County (Carmel, Fishers) is 1.62%, bringing the total to 4.67%. These county taxes are withheld from your paycheck automatically based on where you live — not where you work.

Payroll in the Indianapolis Metro

Indianapolis is Indiana's economic center, with major employers like Eli Lilly, Salesforce, Anthem, and a massive logistics corridor. The $7.25/hr minimum wage matches the federal floor, but in practice most Indianapolis employers start at $12–$16/hr. Indiana does not have any mandatory paid leave or disability insurance programs, so your paycheck deductions are limited to federal tax, FICA, state flat tax, and your county tax. If you moved from a high-tax state, the total effective rate around 12–15% (federal + state + county + FICA) feels noticeably lighter.

Indiana Paycheck FAQ