Indiana Income Tax 2026
Indiana has a flat 2.95% income tax for 2026. The standard deduction is $0 (single) / $0 (married filing jointly). Flat 2.95% state individual AGI tax for 2026, down from 3.00% in 2025 (statutory phase-down continues: 2.90% scheduled for 2027, with potential further cuts toward 2.55% in even years from 2030 if revenue triggers met). NO standard deduction; Indiana uses exemptions that reduce state AGI: $1,000 base personal exemption per taxpayer/spouse plus $1,500 per dependent (additional $1,500 first-year exemption for a newly claimed dependent), plus age-65/blind add-on exemptions. All 92 counties levy a separate Local Income Tax (LIT) on resident AGI, ranging roughly 0.5%-3%+, so combined state+county burden runs about 3.45%-6%. Social Security and railroad retirement benefits are 100% deductible (not taxed by Indiana). Military pay and certain other items have specific add-backs/deductions. No city-level tax beyond county LIT.
Indiana tax brackets (single, 2026)
| Taxable income | Rate |
|---|---|
| $0+ | 2.95% |
Tax on common incomes in Indiana (2026, single)
| Income | State tax | Take-home |
|---|---|---|
| $20,000 | $590 | $17,490 |
| $25,000 | $738 | $21,460 |
| $30,000 | $885 | $25,400 |
| $35,000 | $1,033 | $29,270 |
| $40,000 | $1,180 | $33,140 |
| $45,000 | $1,328 | $37,010 |
| $50,000 | $1,475 | $40,880 |
| $55,000 | $1,623 | $44,750 |
| $60,000 | $1,770 | $48,620 |
| $65,000 | $1,918 | $52,490 |
Estimate your exact 2026 federal + Indiana income tax by income and filing status.
Open the Indiana Income Tax Calculator →Frequently asked questions
Does Indiana have a state income tax in 2026?
Yes. Indiana levies a flat 2.95% state income tax for 2026, on top of federal income tax, Social Security and Medicare.
How much state income tax do you pay on $75,000 in Indiana?
A single filer earning $75,000 in Indiana owes about $2,213 in state income tax for 2026, leaving roughly $59,380 take-home after federal tax and FICA.
What is the Indiana standard deduction for 2026?
$0 for single filers and $0 for married filing jointly.
2026 figures. Source: Indiana Department of Revenue + Tax Foundation. Not tax advice.