Indiana Paycheck Calculator
2026 Indiana take-home pay after federal tax, the flat 2.95% state tax, Social Security and Medicare.
Indiana taxes at a glance (2026)
Indiana has a flat 2.95% income tax with a standard deduction of $0 (single) / $0 (married). 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 income tax brackets and rates